Home Insurance

 Ans: Home insurance covers the following contents- 

• Furniture 
• Furnishing items 
• Expensive belongings
• Precious items like jewelry, gemstones, etc
• Electronics like laptops, televisions, etc. 
• Home appliances like refrigerator, wwasing machines, etc. 

 Ans: No. It is not compulsory for you to buy a home insurance policy from the bank sanctioning your home loan. Neither the Reserve Bank of India (R81) nor the Insurance Regulatory & Development Authority (IRDA) of India has issued any guidelines that mandate you to buy home insurance from the bank where you have applied for a home loan. You can choose to buy homeowners insurance from any insurer of your choice. In case you designated bank forces you to buy home insurance from them, you can refuse them and file a complaint against them to the banking ombudsman.

 Ans:  It is the cost which would incur on reconstructing the damaged property. As per standard regulations, reinstatement cost includes value of foundation and it doesn't include land cost. above 45 years. The type of medical tests required can vary depending on the age of the applicant and the insurer’s requirement.

 Ans :  Sum assured for the structure and content is calculated separately in following pattern. 

Sum assured for the structure

Sum assured Built up area x cost of construction per square foot

It is computed on the basis of reconstruction value and not on its market value. For instance, if the built up area of your house is 1500 sq. ft and the construction rate decided by the insurer is Rs 1000. per sq. ft. sum insured for your home structure would be Rs 15,00,000,

Sum assured for the content

It is calculated either from the actual cash value (ACV) of the asset or from the replacement cost, le.. Current Market Value - Depreciation

 Ans: Yes, the compound wall of your house will be covered by home insurance as long as it is not a kutcha construction.

 Ans: Yes, you can insure your house as long as it is used as a residence and not for commercial purpose. Also the home should not be a kutcha construction.

 Ans: If your home gets damaged then damaged portion may occupy space. You would have to remove debris to reconstruct your house. It is known as debris removal. There are many insurance companies which reimburse the amount spent on debris removal, subject to deductions.

 Ans: Yes, an entire building or housing society can be covered under a home insurance plan for protection to the structure and common areas of the society. However, it will not cover the contents of individual houses or flats. 

 Ans: Filing an FIR is mandatory in case your house has been damaged due to riots, burglary, strike, malicious damage, terrorism and larceny. However, it is not necessary for the following situations-

• Flood
• Earthquake
• Storm
• Lighting

Impact damage due to accidental losses

 Ans: Usually, home insurance coverage starts from the time your payment is received by the insurer. Some companies also commence policy coverage after seven days of paying the policy premium.

 Ans: From the time, transfer of house ownership becomes effective, home insurance policy stands cancelled. The insurer will refund the remaining premium for the balance period to the insured. 

 Ans: Make sure you follow below steps to make a claim on partially damaged house-

1.  Inform the insurance company and send a duly filled form along with a rough estimate of the repairing work. Do not undertake any repairing at this stage, otherwise your insurer may reject your claim.
2. After receiving claim form and requisite documents, a surveyor, appointed by the insurer, will visit your house to assess damages.
3. The surveyor will file a report on the basis his findings. Based on his input, insurer will either accept or reject your claim application.
4. After the completion of work, the surveyor will re-visit your house and submit a detailed report about repair and cost to the insurance company.
5. After receiving bills and receipts, net liability will be computed on the basis of surveyor's recommendation and applicable deductibles.
6. If your claim is accepted, a cheque will be send to you at your postal address. However, if due to any reason, your claim is rejected, insurer will send a repudiation letter.

 Ans:  If your home is damaged, never undertake repair work without informing the insurance company, otherwise your claim will be rejected. Take following steps to make a claim in case of fire accidents.

1. Inform the insurer by calling customer support number or via email.
2. A surveyor, appointed by the insurer, will visit your house to assess damages and repair which need to be done and accordingly he will give a go-ahead for it. Never start repairing work before surveyor asses your house otherwise insurance company will not be liable to accept your claim form.
3. Once the repair work is completed, surveyor will revisit your home. You can submit the duly filled claim form, fire brigade reports and bills to the surveyor along with additional documents requested to process claim.