• Home Insurance policy is an essential financial product that all landlords and tenants should possess to safeguard themselves from various calamities they may encounter. Homeowners insurance, renters insurance, and property insurance are types of insurance products designed to cover aspects including theft, fire, and natural disasters affecting houses and buildings. However, to tailor a fully personalized home insurance policy, it’s crucial to understand which additional features are available. In this article, we will discuss various home insurance policies in India and highlight some riders that could be beneficial to you.

Home Insurance Policies in India

• Home insurance policies in India have evolved, providing enhanced coverage over the years that helps homeowners and renters to protect their residences from unexpected events. This encompasses dwelling coverage, which protects the physical structure of your home; personal property insurance, which covers your belongings; loss of use coverage or additional living expenses coverage, which compensates you if you need to reside elsewhere due to damage to your home; and liability coverage, which pays for medical bills or legal fees if someone gets injured on your premises.

The types of home insurance policies in India:
1. Homeowners Insurance:
Designed for individuals who own a house and need insurance for their property and its contents. It features three types: comprehensive cover, basic cover, and package cover.
2. Renters Insurance:
Aimed at individuals who rent their dwellings and wish to insure their property and potential risks. This type of policy is generally less expensive compared to standard homeowners insurance.
3. Bharat Griha Raksha:
This insurance policy provides coverage for both the home’s structure and its contents. It offers protection against fire, lightning, explosion, riots, storms, floods, burglary, and more.
4. Bharat Griha Raksha Plus – Long Term:
This specific policy offers various benefits and can be purchased for up to 5 years. It stands out in safeguarding your home and belongings against disasters while also allowing for an extended policy experience.

Benefits of Home Insurance

Numerous advantages come with a home insurance policy. They include:
1. Financial Security:
Home insurance instills confidence that you are protected from significant risks that may arise in the future.
2. Comprehensive Coverage:
These policies are available in different varieties addressing various aspects such as damage, loss, or liabilities to safeguard you from most occurrences.
3. Legal and Medical Protection:
Liability coverage within home insurance policies ensures legal and medical costs are taken care of if someone is injured on your property.
4. Additional Living Expenses:
If your home becomes unlivable due to a covered disaster, loss-of-use insurance ensures you have funds for temporary accommodations like a hotel and other associated expenses.

Home Insurance Add-On Covers in India

For a home insurance policy to be fully customised, one can choose from various options, which are as follows. All these options provide numerous advantages, and here are some beneficial add-ons to consider:
1. Personal Valuables Cover:

• You may wish to cover items such as jewellery, watches, or any antique possessions, and this add-on can ensure that plus much more to keep your belongings protected. It covers costs that arise from theft, burglary, or loss beyond a set amount known as the deductible.

2. Sewerage Water Backup Cover:

• This add-on addresses damages caused by water entering homes from basements, crawl spaces, etc. , due to sewer or drain overflow, which typical insurance does not cover.

3. Personal Liability Cover:

• Elevated liability limits provide financial protection when someone is injured on your property or, in the case of pet injury claims, when you are deemed legally at fault.

4. Home Warranty Cover:

• This add-on policy offers coverage for home appliances and systems like refrigerators, washing machines, air conditioners, and electrical systems of the house that are ordinarily excluded in standard policies.

5. Flood and Earthquake Cover:

• Floods, earthquakes, and other disasters are typically not included in basic home insurance. This add-on guarantees that you are protected against such events.

6. Increase in Personal Property Coverage:

• These are typically categorised by property type, such as belongings within the residence that are not permanently attached, or by risk type, like fire, theft, or vandalism. If you possess valuable items or numerous belongings, it may be wise to increase the coverage limit on personal property.

7. Pest Control Cover:

• This add-on extends to support dealing with pest infestations in your home that are generally not addressed in standard insurance policies..

8. Portable Electronic Equipment Cover:

• This ensures that you don’t lose your valuable mobile devices, laptops, or other electronic gadgets due to theft or damage. Previously, it was mentioned which type of insurance is cost-effect

9. Cycle Secure:

• Bicycle insurance policies, including third-party, own damage, and theft insurance policies. Special packages are available for different types of bicycles and various individuals.

10. Terrorism Cover:

• Protect against loss or damage to your property resulting from terrorist actions. It offers specific financial protection from disasters impacting human life.

Factors to consider while selecting a home insurance policy

• It is crucial to reflect on what type of home insurance policy you desire in order to secure the best coverage for your home and belongings.

Factors to consider:
1. Coverage:
The available insurance options include renters insurance, homeowners insurance, and property insurance, among others. Determine which type is appropriate for your needs and the worth of the property you wish to lease out.
2. Deductibles:
Consider how much you are prepared to pay if you make a claim, which relates to the concept of a deductible amount. Health insurance policies with high deductibles tend to be less expensive than those requiring lower upfront payments.
3. Premiums:
Next, it’s essential to weigh the cost of the insurance policy against other insurers that provide a similar product. It is vital to look into any and all discounts that might be available, which often include multiple policy or loyalty discounts.
4. Liability Protection:
We evaluate the policy against alternative insurance options and ascertain the level of liability coverage included in the policy. This will assist in safeguarding you if a third party has an accident on your premises and it turns out to be your responsibility.
5. Replacement Cost Coverage:
Seek out policies that offer guaranteed replacement costs for damaged or stolen items, as you will receive compensation based on their value rather than their cash worth.
6. Exclusions and Limitations:
It is important to review a policy’s exclusions and limitations to confirm whether your valuable items will be protected. Certain personal belongings may require separate coverage, such as jewelry or artwork.
7. Customer Service and Claims Process:
Before choosing an insurance provider, conduct research on its reputation in terms of claims servicing and the process involved. You’ll want to know who to contact when you need to reach an agent or if there’s a necessity to file a claim.

Conclusion

Regarding your home insurance, it is essential to opt for additional optional covers to ensure you feel secure in the event of an incident. Likewise, after acquiring a clear understanding of what home insurance involves and discovering the types of extra features it may include, you can ensure your home is safeguarded against various forms of damages, losses, and liabilities. Indian insurance providers, such as HDFC Ergo, offer homeowners and renters standard policies along with a range of optional enhancements. Remember to assess your requirements and ensure they are incorporated into the appropriate home insurance policy with the correct endorsements.

Disclaimer: The above information is for illustrative purposes only. For further details, please consult the policy documentation and prospectus prior to making any sales decisions.