Home insurance policy: Here's how you can make a claim

Home is one of your priced possessions. You invest your life savings to buy that dream house. While having your own house is important, it is equally essential to buy a home insurance policy for protecting your dwelling from the vagaries of nature as well as man-made calamities. The good news is many insurers have already launched a standard insurance policy names Bharat Griha Raksha, as directed by the Insurance Regulatory and Development Authority of India (Irdai).

After buying the policy the most important, but mostly ignored, step is to know about the claim process. The little exercise, in the beginning, can keep you prepared for future exigencies. For example, the first step in the claim process is to intimate your insurer in writing or call on their customer care number. After the intimation, a list of documents needs to be submitted to the insurer.

Here is a list of documents you need to provide to the insurer when you suffer loss or damage to your home building or articles in it:

i. Policy number,
ii. Insured’s name
iii. Details of the police report
iv. Details of the report to any authority
v. Details of the insured event,
vi. Statement of the loss
vii. Any other insurance of building or its contents
viii. Loss or damage under any add-ons
ix. Submit photographs of loss or physical damage
− report to police, fire authorities and appropriate legal authorities,
− reasonable steps are taken to prevent further damage
− preserve and collect evidence, like photographs
− submit the claim form within 30 days from the date you first notice the loss or damage
− prove that the insured event has happened, and prove the extent of loss

Underinsurance

In the case of underinsurance, the insurance company may pay you proportionately given the terms of conditions of the policy. However, under the standard home insurance policy called Bharat Griha Raksha policy, the clause of underinsurance does not apply. Thus, if the sum insured calculated on the basis of the information is less than the actual value at risk, the difference will not affect the amount the insurance company pays.

For example, the area of your home building is 100 sq.m. and the rate of cost of construction for that town is Rs 15,000 per sq.m. If by mistake, an area of 90 sq.m is only declared in the policy and your building is insured for Rs 13,50,000, instead of Rs 15,00,000. In case there is a loss that requires repairs that cost Rs 5,00,000 the insurance company will pay you Rs 5 lakh under the standard home insurance policy.