Home insurance explained. How to choose the right policy

  • General insurance firms provide home insurance covers in the market
  • Home insurance is bought like any other insurance—you have to fill a proposal form

Life, health and motor might be the first few things you tick off on your insurance list but with the recent influx of natural calamities, it has become essential to insure your homes and its contents. Less than 1% of homes in India are insured, said Kapil Mehta, founder, Securenow.in. Mobikwik, a fintech firm, recently launched a product with ICICI Lombard General Insurance Company Ltd to secure the contents of your home during mishaps. The premium is priced at 25 per month and sum assured is 2 lakh. It protects your TV, fridge and furniture from fire accidents caused by short circuits and gas leakages.

INSURE YOUR HOME

General insurance firms provide home insurance covers in the market. “There are 30-35 products available in the market," said Nikhil Apte, chief product officer, Royal Sundaram General Insurance Co. Ltd. Home insurance plans usually cover the building and its contents. These may include household goods, furniture and gadgets. “Though it varies from insurer to insurer, most plans give coverage against fire, theft and burglary. The risks covered also include damage due to storms and rain as well as malicious damage," said Mehta. The premium for a sum insured of 1 crore is between 5,000 and 10,000, he said.

DOES IT ONLY COVER FIRE SAFETY?

“Home insurance products not only offer coverage against fire perils but also cover burglary and theft, breakdown, snatching (of jewellery), accidental damage (of smart phones, laptops, digital/ video cameras), personal accident (for employees) and employee compensation (covering legal liability of domestic staff under WC Act 1923)," said Apte. Home insurance is bought like any other insurance—you have to fill a proposal form. “You’ll have to declare the building and contents of the building. The sum insured is decided based on the cost of construction and location of building," said Mehta.

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