Home insurance policy types and the cover they offer against natural and man-made disasters

-
When it comes to home insurance, there are various policies available in the market. We examine the differences between them, to help owners to gauge the right policy
Damage to properties due to natural disasters, is one of the gravest financial setbacks that one may come across in life. The floods in Kerala in 2018, caused damage worth several thousand crores to property and made a large number of people homeless. “While humans cannot avert natural calamities, one can certainly protect their homes against them and minimise the loss or damage. Insurance is the first cover, on most people’s list. However, very few people take home insurance in India.
Buying a comprehensive home insurance policy will ensure that a home buyer can be safeguarded against financial losses, if any event occurs. The policy can cover all types of natural and man-made disasters, including floods, earthquake, terrorist attacks and even robbery.

Types of cover that home insurance policies provide

  • Home insurance for the structure: This policy provides home buyers with protection for the structure of a home, which consists of the structure itself, along with permanent fixtures and built-in items.
  • Home insurance for contents: This policy provides home buyers with cover for the contents of their home, including furniture, jewellery, electrical and portable appliances.
Besides the basic protection, an insurance policy can also offer add-on covers, such as the cost of living in a rented accommodation while your house is being repaired. If the house is rented out, the owner can take cover against the loss of rent, if a natural calamity renders it unfit for occupation. However, these covers are for a limited period of up to a few months after the disaster.
A landlord insurance covers the financial risk to a property, caused due to earthquake, flood, fire, damages due to a tenant’s actions and so on. When the landlord incurs such financial loss due to damage to the insured property, then, the insurer pays for the replacement cost, to the extent of damage, after adjusting the deductible as per its terms and conditions. For example, if, due to fire, the kitchen is damaged, then, the insurance company will pay for the cost incurred in repairing the kitchen. However, before you get the claim amount, the insurance company may ask you to pay the deductible sum.

Which insurance policy should you buy?

A landlord may be more concerned about the structure of the property. Hence, he may like to buy insurance that covers the risk of damage to the structure. On the other hand, a tenant may be more concerned about the belongings and so, may like to buy insurance for the contents. A comprehensive home insurance policy product, may give you the benefit of risk cover for the contents, as well as the structure. However, before buying an insurance policy, the applicant should check out the list of inclusions and exclusions, to figure out what risk hazards the insurance product covers.
Insurance for under-construction properties
While a home insurance policy provides risk cover only for the constructed property, what if you have bought an under-construction property? In this case, experts suggest that it is the duty of the builder, to get a project insurance policy, to cover the threat to an under-construction property from natural disasters. So, before you buy an under-construction property on a home loan, check whether the builder has taken a project insurance cover.
Courtesy: Housing.Com

Comments

  1. Freyal MikaelJuly 5, 2024 at 5:08 AM

    Thanks for sharing your Though. Home insurance offers peace of mind by protecting your property from unexpected events like fires, theft, and natural disasters. It's essential for safeguarding your investment and ensuring financial security.

    ReplyDelete
  2. Restore & Renew: Damage ControlNovember 11, 2024 at 1:56 PM

    Great insights on home insurance! It's important to understand what happens if your property is a total loss. Knowing the details about how the insurance process works can save a lot of stress during difficult times. For those interested in learning more, understanding the [home insurance total loss payout] process can provide clarity on what to expect from your insurance provider.

    ReplyDelete
  3. Unpaid ClaimNovember 11, 2024 at 2:05 PM

    This article is really informative for homeowners seeking advice on insurance claims. However, if you ever find yourself in a situation where your claim is not approved, it’s essential to understand why. Many homeowners face challenges, and sometimes a home insurance claim denied can be avoided by knowing the common mistakes that lead to rejection. Make sure to review your policy thoroughly and avoid these errors to increase the chances of approval.

    ReplyDelete
  4. Peter EmbrozDecember 15, 2024 at 11:21 PM

    Great insights on home insurance! It's important to understand what happens if your property is a total loss. Knowing the details about how the insurance process works can save a lot of stress during difficult times

    Manheim home insurance agency

    ReplyDelete

Post a Comment

Popular posts from this blog

Information regarding Share Certificate of Housing Societies

-
Information regarding Share Certificate of Housing Societies Share Certificate is one of the most important documents issued to the members of the Co-operative housing society As per Model Bye-laws# 9(a): A Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the Member, the number of shares issued and the value paid there on, shall be issued by the Society to every Member for the shares subscribed by him, within a period of six months of the allotment of the shares. In Maharashtra, societies are governed by Maharashtra Cooperative Societies Act. This Act provides the rules and regulations governing Cooperative Housing Societies also. Total Authorized Share Capital of a Co operative Society is fixed by Registrar of Co op Societies at the time of registering the Society. This share capital is divided into shares of Rs 50/- each. After the amendment to the byelaws in 2014, in cooperative housing societies in Maharashtra, each member has...
Read more

Builder bound to form Society if 51% flats are booked as per MahaRERA

-
Maharashtra Government has notified RERA rules to regulate Real Estate Industry as directed by Central Government. Under new RERA Rules Builders are duty bound to give conveyance and form society if 51% of flats are “Booked”. Within three months of 51% booking the project, builder is duty bound to form a society and hand over conveyance to the newly formed society. Maharashtra RERA Rule 9. Formation of legal entity and transfer of title. – (1) Promoter to enable formation of Legal Entity like Cooperative Society, Company, Association, Federation etc. under clause (e) of sub-section (4) of section 11 of the Act.- (i)Where a Co-operative Housing Society or a Company or any other legal entity of allottees is to be constituted for a single building not being part of a Layout; or in case of layout of more than one building or a wing of one building in the layout, the Promoter shall submit the application in that behalf to the Registrar for registration of the Co-operative Housing Societ...
Read more

100 POINT SECURITY GUIDELINES TO CITIZENS IN HOUSING SOCIETIES

-
Image
Mr. Quaiser Khalid,  Addn Commissioner of Police East Region, Chembur, Mumbai 400071 Tel: 25230893 / 4 http://mumbaipolice.maharashtra.gov.in 100 POINT GUIDELINES TO CITIZENS IN HOUSING SOCIETIES [Letter written on 23rd April, 2013 by Additional Commissioner of Police, East Region, Mumbai.] Dear Citizens: As Additional Commissioner of Police, East Region, I am happy to communicate with you through this initiative. Since I assumed office, I have been reviewing various aspects related to security and welfare of the citizens in the East Region, which comprises of Zone 6 (10 Police stations) & Zone 7 (8 Police Stations). I would like to share certain important guidelines to be followed by every housing society. Some of the housing soceities may have their own rule book, but may or may not strictly follow them on a day to day basis.  Hence, as a first step, I would like every Housing Society to take a serious look at the guidelines listed here and impl...
Read more