What are the inclusions and exclusions under home insurance?
The extent of coverage varies from insurer to insurer and the features you opted for at the time of buying the policy
A home insurance policy is essential to protect the structure of your house and its contents. It protects your most valuable investment from the vagaries of nature and man-made calamities. Here the basic policy premium is not determined by the total value of your house but it is determined by the building cost. Hence, if the market value of a house is Rs 1 crore, of which the building cost is Rs 30 lakh, then your policy will provide cover for only Rs 30 lakh. Along with the structure of the house, one can also buy cover for the contents of the home.
The good part is that these policies are very affordable in India, with a premium of around 0.06% to 0.2% of the sum insured. For example, for a cover of Rs30 lakh, along with a cover of Rs 5 lakh for the contents, a pure fire insurance cover along with a terrorism cover would come to about R2,000 for a year. Adding additional covers such as burglary and theft cover, breakdown domestic appliances the annual premium works out to around Rs 5,000-Rs 6000.
What’s covered under home insurance?
The extent of coverage varies from insurer to insurer and the features you opted for at the time of buying the policy. Here is what all your home insurance policy covers:
> Protection against natural calamities like earthquakes, floods, fires etc.
> Manmade calamities like robbery, riots, strikes, dacoits, etc.
> Video equipment including television.
> Covers damage to the building of your home including garages, swimming pool, terraces, etc.
> Add on covers such as pet insurance, loss of wallet, loss of rent, public liability cover, ATM withdrawal cover, key and lock replacement cover and temporary resettlement cover.
What’s not covered under home insurance?
Here are some of the general exclusions in a home insurance policy:
> Damage as a consequence of war, invasion, civil war, rebellion, revolution, etc.
> Damage directly or indirectly caused by ionizing radiation or contamination by radioactivity.
> Damage caused by general wear and tear.
> Any pre-existing injury, disease, illness or damage before buying the policy.
> Damages due to confiscation, requisition or destruction by order of government.