What it is
Home insurance is a form of property insurance. According to the Insurance Regulatory and Development Authority of India (IRDAI), property insurance means cover for buildings, machinery, stocks and similar assets against Fire and Allied Perils, Burglary Risks and so on.
Property insurance is a very large part of general insurance, the branch that covers things other than life. The cover you need depends on what kind of property you want to protect. A house, a shop’s stock and a ship’s hull are all property, but each needs a different policy.
Some related policies sit outside home cover. Goods in transit by sea, air, rail, road and courier can be insured under Marine Cargo Insurance. Hulls of ships and boats fall under Marine Hull Insurance. Planes and helicopters have their own Aviation Insurance Policy.
How it works
You buy a policy for the property you want covered. The policy names the risks it protects against, such as fire and allied perils or burglary. A loss from a covered risk can then be claimed from the insurer.
The property can stay in one place, like a building, or move around, like household goods being transported. IRDAI notes that several types of policies cover property, so check which one matches your situation.
Warranties and conditions
Every policy document carries a set of dos and don’ts for your property. These are called warranties and conditions. IRDAI says you must follow them for the duration of the policy, whether or not a claim ever arises.
Read this section carefully when the policy arrives. It also tells you which documents a claim needs and what procedure to follow.
What it means for you
When comparing policies, check three things: which risks are covered, what the warranties and conditions require of you, and which documents you will need if you claim. The sources do not give sums insured, premiums or exclusions, so check those in the policy wording itself.
If you suffer a loss
- Report losses and damage, including those from theft, fire and flood, to the relevant authorities, such as the police or the fire brigade.
- Inform your insurance company, so it can send a surveyor (a person who inspects and assesses the loss).
- Follow the claim procedure and document list in your policy.
IRDAI stresses that telling your insurer is important, because the surveyor’s assessment is part of how the loss is evaluated.
Common mistakes to avoid
- Not reading the warranties and conditions until a claim arises.
- Assuming one policy covers every kind of property, including goods in transit.
- Reporting to the police or fire brigade but forgetting to inform the insurer.
If you are paying for a home through a loan, you can estimate your repayments with the EMI Calculator.
