Ask Mint Money | Householder’s policy bought by owner covers even rented homes

I want to purchase gold jewellery for my daughter. The jeweller says that he can provide an insurance cover for the jewellery. Should I take the cover that the jeweller provides or opt for a separate plan?

—Saini

Insurers are usually not keen to provide stand-alone jewellery insurance. Jewellery gets covered under the home insurance policy. Most insurers impose a cap on the value of jewellery that can be covered under the home insurance policy and cover jewellery of a value up to 20% of the value of the total household goods covered under the policy. Therefore, only a small amount of jewellery gets covered.

In case your jeweller is able to provide an insurance cover, it is best that you get it insured through the jeweller. You may check the following before taking the cover: whether it is an all-risk cover or merely a fire and burglary cover? An all-risk cover is comprehensive and better suited for jewellery. Also, check the cap on the value of each item covered, the deductible for each claim and documents that you will have to provide to claim a loss. Ideally, the cost of the policy should not exceed 1% of the value of the items covered.

My motor insurance is due for renewal next month. Is buying online cheaper? What riders should I take for a three-year-old car? The car is used for long drives almost every weekend.

—Keshav M.

The process of buying motor insurance online is not completely online as certain documents such as a copy of the registration certificate, last insurance policy and no-claim bonus certificate or a declaration have to given to the new insurer at the time of renewal. Therefore, there is an offline transaction. It is also our experience that buying online is not necessarily cheaper.

Also, you will need the help of a good adviser in case of total loss or a theft claim, hence it is better to take car insurance through a trusted and knowledgeable agent or broker.

You should cover the driver, the passengers and your legal liability towards a paid driver if you employ one. You can also consider the zero depreciation rider while buying insurance.

I am going abroad for 14 months on an assignment. During that period, I am giving my house on rent. Will my householder’s policy be applicable when it is occupied by tenants?

—Ritesh Jha

Your household policy covers your house whether it is occupied by you or by your tenant. You can renew your policy and go abroad in peace.

Rahul Aggarwal, director, Optima Insurance Brokers

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