Different types of Home Insurance plans in India

Whether we own or rent our houses, we take the most excellent care to maintain them and decorate them with carefully chosen items in certain areas. To safeguard your house and its possessions against unforeseen calamities like earthquakes, floods, burglaries, etc., you must manage your budget accordingly. In this article, we assist you in understanding the primary and most popular home insurance plans.

What is a Home Insurance Policy?

Home insurance protects your home's structure and contents against fire and theft, natural disasters (cyclones, storms, etc.), or man-made activities (riots and terrorism). It is also known as homes owners’ insurance or property insurance. Getting home insurance coverage is a good idea since it will protect your house and allow you to spend a peaceful time at home with your family and loved ones.

Different Kinds of Home Insurance Policy

To meet the diverse demands of its clients, each home insurance provider in India has carefully designed a broad selection of plans. You can better understand the need for your house and choose the appropriate policy based on your requirements. Here is a list of the most common kinds of homeowners insurance plans available in India:

Standard Fire and Perils Policy

Numerous general insurance companies in India provide this basic home insurance plan. As suggested by the policy's name, it offers protection for your house against fire and other specific risks. To safeguard the property's structure, homeowners and landlords may acquire this plan. Renters may also obtain this coverage to protect their property and other items. Based on the building's rebuilding costs, the amount guaranteed for this insurance is determined. It excludes the price of the land.

The Standard Fire and Perils Policy typically cover the following:

Natural disasters include forest fires, bushfires, lightning, floods, volcanic eruptions, earthquakes, cyclones, hurricanes, etc.
Damages to your house brought on by explosions and other man-made calamities, including riots, strikes, and malicious intent.
Damages resulting from collisions with other cars in a traffic accident. But remember that this insurance does not cover damage your car causes to your house.
Damages to your home brought on by broken pipes, overflowing water tanks, etc.
Losses resulting from landslides and rockslides
Losses from operational missile testing incidents
The harm brought on by water leaks resulted from sprinkler explosions, overhead tank bursts, etc.

Personal Accident

This is a comprehensive home insurance plan that protects you and the family in addition to protecting your house. The insurer will provide compensation if you or a family member is injured in the covered place and suffers a fatality or permanent disability. Furthermore, some homes owners insurance plans include personal accident coverage, covering incidents outside the insured residence.

Home Structure Insurance

This is sometimes referred to as building insurance. As its name implies, the building insurance coverage solely covers damages to the building structure itself, including the fitted kitchens, built-in cabinets, floors, doors, and ceilings. Additionally, it includes a few different buildings, such as outside garages and sheds. Appliances, crockery, and available furniture are not insured.

Note that fences, gates, boundary walls, and significant supply pipes are often not included. The policy covers fires, tree falls, gas explosions, earthquakes, water pipe bursts, etc. For landlords renting out an unfurnished property, since they do not reside in the building and all furniture would belong to the renters themselves, purchasing a building insurance plan without the protection for household items inside may be appropriate.

Thefts Insurance

The precious contents of your house are covered by this insurance coverage, as the name indicates, and are compensated if lost or destroyed due to theft or a break-in.

Public Liability Coverage

If a disaster in your house, such as a fire or water damage, results in harm or damage to the property or people of third parties, such as your neighbours, the general public, or someone living below your apartment, you may be held responsible. In addition to financial loss, this situation also involves reputational damage and legal costs. Your public liability insurance protects you against these monetary and legal costs up to a predetermined level based on the premium you have paid. Please be aware that this insurance does not cover losses brought on by war, acts of God, natural disasters like floods, earthquakes, etc., or losses brought on by the policyholder's planned activities.

Household Articles Insurance

This home insurance policy provides coverage for your house and all of its belongings. You can safeguard the possessions within your house from theft-related losses and damage with contents insurance. This insurance generally covers jewellery, papers, and other items in the home and equipment like the TV, washer, and refrigerator. This insurance coverage assists you in repairing your house when a disaster or an accident damages the outside or inside.

It's crucial to remember that the items' worth would be determined by the market value that prevailed when the claim was filed, not by the price at which it was acquired. Additionally, various items covered by insurance often apply maximum cover limitations. In the situation of renters who will wish to safeguard their personal belongings, having essential household items covered by insurance may be appropriate. Be aware that if there is intentional or negligent damage to the property, the landlord may still bring a lawsuit against the renter.

Landlord's Insurance

The insurance plan for landlords is created specially to cover their needs when renting their properties to renters. In addition to providing coverage for the building's structural structure, this insurance also covers loss of rent and third-party liability. However, the landlord's insurance does not protect against damage from natural disasters, acts of terrorism, intentional destruction, or damage to property that is left empty for an extended length of time.

Tenants Insurance

As the name suggests, this house insurance coverage is only available to renters. Tenants do not bear the cost of safeguarding the building's structure. Protecting the commodities and items within the house should be their first concern. Renters may secure their furniture, electronics, and other belongings for a modest fee with tenant insurance.

Home insurance coverage comes in a variety of additional forms. What's crucial, however, is that your homeowner's insurance is customized for your house and your needs. Last but not least, after choosing your insurance policy, read the policy paperwork from beginning to end to prevent any complications at the time of claim.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales