Do not neglect home insurance

Home insurance is primarily a cover that is provided as protection for one's home against various kinds of risks and hazards such as natural calamities including floods, earthquakes, tsunami or accidents such as fire and occurrences such as theft.

There are two basic types:

Building Insurance: This provides cover to any form of building or the structure of the building against damage due to man made reasons or natural calamities to the extent of providing for the entire cost of reconstruction in case the building suffers complete destruction. The conditions under which insurance is valid includes:

Fire, explosion of any domestic appliance like cooking gas

Damage due to riot, strike etc

Natural calamities like storm, flood, cyclone or earthquake

Damage caused by aircraft

Loss due to third party liability or personal accident

Subsidence and landslide including rockslide

Bush fire

Lightning and impact damage

Content Insurance: This provides cover to the contents in the house such as jewellery, movable goods and any valuable item which is not fixed to the home like electronic goods, clothing or furniture. There are various types of covers available with different insurers which the customer can choose from. The contents of the home are provided cover against loss or damage due the following reasons:

Theft

Explosions

Storm or fire

Loss of valuables like jewellery, crystal, crockery

Accidental damage of plate glass fixed in windows and doors

Damage or loss of electrical appliances

Key points

Before buying home insurance do take note of the following:

Read the fine print: what is covered and what is excluded.

Make inventory of contents, estimate market value and have ownership documents of contents.

Ascertain periodicity of renewal and stick to it.

Age doesn't affect premium cost but some insurers refuse houses more than 50 years old.

... contd.

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