To suit the varied needs of every individual customer, leading home insurance companies and banks in India offer a broad range of home insurance policies. These varied types of home insurance policies help customers to understand the necessity of home insurance and choose the right policy according to their requirements. The primary and most popular types of home insurance policies offered in India have been listed down, in a comprehensive manner.
Standard Fire and Special Perils Policy
Offered by every leading insurance company, as the name of the policy suggests, it provides coverage against certain special perils and fire outbreak. This coverage can be bought by house owners (for their own house) and also by tenants residing in a rented house. The sum insured, for this policy, is calculated as Building - Cost of reconstruction (exclusive of land value). A Standard Fire and Special Perils policy covers the insured home against loss and damages caused due to following causes –
- Natural calamities like lightning, fire, volcanic eruptions, bush fire, forest fire, earthquakes, storms, floods.
- Damages caused due to explosion/implosion, man-made anti-social activities like strikes, riots, damage caused with malicious intent
- Damage caused by direct contact of rail/road, vehicle. Damage caused due to the insured house, with your own vehicle, is not included in this cover.
- Damage caused due to bursting or/and overflowing of water tanks, pipes and apparatus
- Subsidence including rockslide and landslide
- Missile testing operations
- Damage caused due to leakage from automatic sprinkler installations
Home Structure/Building Insurance
This type of home insurance covers the structure of your house from any kinds of dangers and risks. In addition to this, the policy also protects any permanent fixtures within the house. This includes your kitchen and bathroom fittings, and also the ceiling/roof of the insured house. Some houses have garages, an outdoor room/house or sheds. This type of insurance usually extends to these structures as well.
Public Liability Coverage
If any guests or third party experience damage caused to them or their property inside the insured’s home, then this type of home insurance policy provides coverage against the same.
This type of home insurance covers you and your family. A compensation is given in case of permanent disablement or death of the insured person due to accidental or physical injury, even if it has happened anywhere is the world.
Burglary & Theft
In case of an occurrence of burglary or theft in the insured house, if any valuable contents are stolen or damaged, the policy covers you for it.
It is not just the house, that you have insured, but also the contents inside the house on which you would have spent a lot of time and money deserve equal protection. This type of home insurance policy protects the goods inside your house from damages and loss owing to theft, fire, flood and other such mishaps. Your documents, portable equipment, jewelry, TV, refrigerator, etc. are covered. It does help you when you have to replace the interiors of house if your house is flooded, or has been burnt to ashes by break out of fire.
As a tenant you would have obviously rented a house or flat. In that case, it is the wisest option to not opt for a buildings cover, instead you need to focus entirely on protecting your contents. This type of insurance is a must have for every tenant. Though you live in a rented house, it is very much yours, at least, till the time you reside in it.
As a landlord, the maintenance and upkeep of the building/apartment/structure of the house (that you are renting out) are clearly your responsibility. A standard buildings insurance policy usually aren’t exclusively designed for the need of landlords, because there are also other residents who live in the building. As a landlord you need something specifically designed for landlords. Hence, a landlords’ insurance policy is ideal for you and it also covers things like loss of rent and public liability.
What is not covered?
- Destruction of property willfully.
- Damages to property due to wear and tear.
- Loss to property due to war.
- Loss to property unoccupied for more than a certain specified period.
- Money in the form of cash, antiques and collectibles.