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Make a list of contents upfront and get it endorsed under home insurance plan

  • A home insurance policy gives you the option to cover only the structure of your house or its contents, or both. If you choose both, the furniture and fittings would be covered.
  • You can buy a health plan with a high level of OPD coverage for your daughter to pay for her therapy, medication expenses

I have recently bought a house and furnished it. Can I insure all my furniture and fittings under a home insurance policy or does it only cover the structure of a house? How should I go about it?

—Harish Goyal

A home insurance policy gives you the option to cover only the structure of your house or its contents, or both. If you choose to cover both, the furniture and fittings would be covered under the plan.

You need to declare the aggregate sum insured of the contents. Most insurers do not insist on a specific list of contents with individual itemized value. At the time of making the claim, they validate the items on site with the insured value. This can sometimes lead to confusion. So it is better to make a list upfront and get it endorsed under the policy.

Contents can be insured either at a depreciated value or on reinstatement value. The latter is preferred. You would need to get a reinstatement value clause endorsed in the policy for this.

We are a retired couple living off our combined pension. Both of us have individual health covers. Our daughter, who is now 27, struggles with mental health issues. While I was employed, she was covered by my employer’s health insurance, but not anymore. What kind of health insurance cover would be suitable for her? Would it cover the costs of her therapy and medication?

—Name withheld on request

Health insurance covers hospitalization due to mental health issues. However, insurers have the flexibility to decide whether to issue the insurance in the first place. This will depend on the nature of your daughter’s mental health issues and the insurer’s underwriting policy.

If you do get the insurance, coverage for therapy and medication incurred on an outpatient basis can be covered under health plans with OPD coverage. So you can buy a health plan with a high level of OPD coverage for your daughter to pay for her therapy and medication expenses. A plan with hospitalization sum insured of 10 lakh and an OPD sum assured of 5,000 will cost 15,000 per year.

If you can’t get mediclaim insurance, consider buying a critical illness plan for your daughter. These cover specified illnesses and can include mental health conditions.

Abhishek Bondia is principal officer and managing director, SecureNow.in.

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