Ask Mint Money | Householder’s policy amount should replace the items insured

I have recently moved to a new house and bought a lot of expensive items. I want a householder’s insurance cover. How do I assess the value of my belongings?

—Yogesh

A householder’s insurance can cover risks such as fire, earthquake, flood, riot, burglary and breakdown of electrical and electronic equipment. The most important point to note is that if any item is stolen or damaged beyond repair, you will have to buy a new one to replace it.

Therefore the value of each item for insurance should be the new replacement value of the same or similar item. You should either take the invoice value of the item if you have bought it recently or you can check the present cost of items on any of the shopping websites or stores in your city.

Last week I lost my laptop while I was travelling. The laptop was insured and as I was travelling I had also taken a travel insurance. Which policy will cover the loss and what is the right way to claim?

—Renjith

Laptops are covered under portable electronic equipment policy, also known as all risk policy. This policy covers burglary and theft but does not cover mysterious disappearance or loss of equipment due to negligence. To make a claim under this policy you will have to submit an intimation of loss, policy copy, First Information Report, purchase invoice and proforma invoice for a new similar laptop. Travel insurance covers checked in baggage only. It does not cover hand baggage. Hence you will have to make a claim under your laptop insurance policy.

I bought a used car from one of my relatives. It is a seven-year-old car and the insurance needs to be renewed. What kind of a policy should I buy? What add-ons should I take considering the value of the car has depreciated considerably?

—Satvik

You should buy a comprehensive motor insurance policy. This policy will cover third-party liability, the risk of any kind of damage to the car and theft of the vehicle.

Most insurance companies offer very relevant add-on covers such as no-deduction of depreciation, personal accident cover for owner, driver and passengers and workmen compensation cover for hired or employed driver.

Since the vehicle is seven years old, insurance companies will not offer no-deduction of depreciation cover. However, personal accident cover for owner, driver and passengers and workmen compensation cover for hired or employed driver are very modestly priced and are highly recommended. You can also consider “roadside assistance” cover.

Rahul Aggarwal is director, Optima Insurance Brokers

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