What is Home Owner Insurance?
Home Owner Insurance is a property insurance that protects one against damages to the house or belongings in the house. A standard Home Owner Insurance policy protects your house and also your house belongings. The policy offers cover for damage incurred to the house and house belongings by fire, earthquake, burglary/theft and many other reasons.
Why do you need Home owner Insurance Plan?
Having Home Owners insurance is very important as it not only offers protection to your house but also to the belongings in your house along with cover for your liability for any injuries or property damage you or your immediate family members are responsible for. Though Home Owner Insurance is optional, many mortgage lenders require you to have home owners insurance in order to lend money. Home Owner Insurance will not only save you from unexpected expenses but will also help you make your home more resistant to natural disasters and leave you stress free.
Features and benefits of Home owner Insurance:
Listed below are the general features of Home Owners Insurance.
- Offers comprehensive insurance coverage- THe plan offers comprehensive cover which protects the house and contents of the house.
- Optional cover- One can opt for additional cover that will cover other perils that is not covered by the base Home Owner insurance policy.
- Temporary living expenses- Most of the policies pay compensation for temporary living expenses in case the house is uninhabitable after a certain claim.
- Cheaper mortgage policies-Having a Home Owners Insurance policies will give the insured an edge in negotiating for a lower rate with mortgage policies.
- Hassle free application process- The application process is easy and one can apply for the schemes online too (given that the bank has made the provision)
- Minimal documentation- The plan requires minimum and simple documentation.
- Discounts on premium- Most of the banks or lenders offer premium discount for security features at the house.
Home owner Insurance Covers:
Listed below are the perils covered under Home Owner Insurance
Fire and special perils
- Damage from an aircraft collision
- Explosion / implosion
- Flood and Inundation
- Riot, strike and other malicious damage
- Subsidence and Landslide
- Bursting and/or overflowing of water tanks, apparatus and pipes
- Missile testing operations
- Leakage from automatic sprinkler installations
- Bush Fire
Earthquake- The policy offers cover for loss or damage caused to the house and its belongings in the event of an earthquake. Sum Insured for this cover is identical to the Sum Insured against the risk covered under main policy.
Burglary and theft- Since the contents of the house is covered under the policy, cover is offered for the theft or loss of house contents or damage incurred by the house in the event of burglary.
Home owner Insurance Exclusions:
Listed below are the exclusions or the features that are not covered under the Home Owner Insurance policy.
- Loss or damage that might be due to wear or tear
- Loss of cash
- Damage or loss due to war and nuclear attack
- Loss or damage to an electronic equipment due to over usage or excessive pressure
- Wilful destruction of the property
- Loss of painting, antiques or other works of art
Companies providing Home owner Insurance in India are:
Given below is a list of the most popular companies in India that offer Home Owners Insurance.
- ICICI Home Insurance
- HDFC Ergo Home Insurance
- Future Generali Home Insurance
- Bharti AXA Home Insurance
- Oriental Home Insurance
- IFFCO Home Insurance
- SBI Home Insurance
- New India Assurance Home Insurance
Home owner Insurance Claim process:
Every insurance company that offers Home Owners Insurance has its own claim process. If an insured wishes to make a claim, they should do so within the deadline stated by that particular company. Every company has its own deadline when it comes to filing claims. The insured might need to file an FIR for some claims and a copy of the same should be submitted to the insurance company. Given below is a list of few other documents that one needs to submit while filing a claim.
- Fire brigade report
- Medical Officer’s Certificate for death or disability
- Investigation report by police
- Supplier's original invoice for replacement
- Invoice of owned articles, if any
- Repair estimates
- Court summons
Home owner Insurance FAQs:
- Does every Home Owners Insurance cover the contents of the house?
Yes, every Home Owners Insurance offers cover for contents of the house.
- Can claims be made on a partially damaged house?
Yes, claims can be made on partially damaged houses.
- Is FIR necessary for every claim?
FIR is necessary in cases of riots, burglary and malicious damage to the house.
- Can I purchase two Home Owners insurance policies?
Yes, one can purchase two Home Owners Insurance policies from different insurance providers.
- Can an entire society building be covered under the plan?
No, society buildings are not covered under the plan.
- Can I insure my house which has been given out on rent?
Yes, you can insure your house even though it's been given out on rent.
- What is reinstatement cost?
It is the cost incurred from reconstructing a property that has been damaged.
- Is earthquake covered under the policy?
Yes, most of the policies offer cover for damages incurred from earthquake.
- Does the policy offer cover for loss or damage caused by wear and tear?
No, the policy does not offer compensation in this case.
What is the maximum tenure of a Home Owners Insurance policy?
The tenure can go up to a period of 30 years depending on the plan and insurance provider.