Don’t let quake ruin your dream, insure your home today

You have had put in a lot of effort for years to build your home, your abode of happiness. Right from the early days of frequenting banks to have your home loan granted to finalizing on design and settling with the best builder; you actually left no stone unturned to make your dream come true. You also have made arrangements for sophisticated security systems to stay safe from recurring events of theft and burglary. And you had thought your dwelling place is completely safe and secured until you came across the news of Nepal Earthquake. The news you heard about the casualties and the footage you saw about the ruins absolutely shook you upside down.

 

Why home insurance is crucial?

You have invested the savings of your entire life in the construction of your home. You have no idea if such a deadly quake strikes and damage your residence how can you rebuild another. You have never thought about insuring your home and completely unaware of the ways of going about it. However, it is best way to stay financially protected in time of a natural or man-made calamity affecting your dwelling place. Although, home insurance is the least-happening insurance sector in India its usefulness cannot be overstressed. If you can pay Rs. 1000 on premium to insure your car worth 5 lakhs, you should also afford another Rs. 1000 on premium for your residence worth 30 lakhs.

 

Compare to save while buying home insurance

There are umpteen insurance providers out there to sell you their products. All of them will offer you the best coverage, minimum premium and exclusions. Without any prior experience, you will have to find a needle in the haystack if you don’t compare features of several different plans. It can be a costly mistake if you skip this part and jump on the very first policy you come across. Instead, you should take advantage of insurance comparison portals that will help you compare different plans and save money while buying one finally. You need a home cover that comes with coverage for earthquake. Hence, you need to go through all the plans that offer such protection.

 

Comparative study of various home insurance plans

When you start comparing home covers you will find that there are typically two types of plans available.

 

home insurance compare

 

Building ( Dwelling)

This type of home covers offers protection for your home building and boundary wall against a range of natural calamities and man-made disasters. If you want to buy such a home cover you need to click on the building option. However, your valuables inside home will not be covered under this type of home insurance plan.

 

Package policy

Both your home building and other valuables in the likes jewelry, electronic gadgets,

furniture and household appliances will be covered if you go for a package policy. You may tend to think a robust locking system will keep your costly belongings safe and secured. But a home insurance package will ensure safety of precious possessions from a plethora of perils such as theft, larcency, burglary, mechanical and electrical breakdown, fire accidents, lightning and earthquake.

 

Avail discount by purchasing a multi-year policy

Before choosing any one of these two types of home insurance plans, you should also know that you are eligible for discounts if you buy a multi-year policy. You can avail 15% discount by opting for a policy with 3 years term. The amount of discount will increase as you also increase the tenure of policies. You can grab as much as 50% discount by purchasing a home cover with 10 years term.

home insur

 

Home insurance (dwelling)

It is prudent to gain information on both types of home covers. Let us start with ‘dwelling’ type. If you look to avail a dwelling home policy for an amount of 50 lakhs with the tenure of 5 years, there are three policies on offer for you. The providers are Royal Sundaram General Insurance, Oriental Insurance and United India Insurance. Even though all three policies impose no limit on dwelling age and sum insured if you keep a close eye on these offerings you can find out that all these plans have their own set of pros and cons.

 

Insurer

Premium

Policy period

Sum insured

Dwelling age

Earthquake

Terrorism

Royal Sundaram

13,538

Up to 15 years

No Limit

No Limit

Yes

No

Oriental Insurance

11,400

Up to 10 years

No Limit

No Limit

Yes

Yes

United India Insurance

12,469

Up to 15 years

No Limit

No Limit

Yes

Yes

United India Insurance offers the best policy in terms of renew ability of policy period and coverage. But you have to pay around Rs. 1000 more for premiums.Premium-wise Oriental Insurance is your best choice as they offer lowest premium price of Rs. 11, 400. The plan offers protection from both earthquake and terrorism. But, the policy is renewable only up to 10 years.

 

Royal Sundaram home cover can be renewed up to 15 years. But, the plan does not cover expenses due to terrorism and the premium rate is also on the higher side.

 

The coverage on offer under dwelling policy

Typically these home covers offer protection against the following natural and man-made disasters;

  • Fire

  • Lightning

  • Earthquake or any other natural convulsions

  • Aircraft Damage

  • Implosion or Explosion

  • Storm, Typhoon, Cyclone, Hurricane, Tempest, Tornado, Flood

  • Strike or Riot or damage due to malicious acts

  • Loss or visible physical damage of the insured property by any animal or road vehicle or rail

  • Overflowing of Pipes, Apparatus and Water Tanks

  • Landslide and Rock slide

  • Missile Testing operations

  • Bush Fire

  • Leakage from Automatic Sprinklers

 

Now that you know nooks and corners of these plans you can select any one of these three policies as per your budget and requirements. Among these insurance providers, Royal Sundaram gives you the opportunity of reimbursement for total reconstruction of your residence, fees for consulting with architect or engineer and even expenses for removing debris.

 

Home insurance (package policy)

You can also take a look at home insurance package policies if you want to insure your valuable possessions as well. It is little trickier to find out policy quotes for this type of home covers. You need to select between owned and rented options based upon your situation.

If you reside in a house on rent you just have to put a specific amount which is the total value of the contents in home. You can have the same amount covered as a protection from burglary.

home  rented  package

package policy  home

What is covered under a home insurance package policy?

A package policy offers coverage for the following valuable assets in home;

  • Household appliances and electronics such as TV, Washing Machine, Fridge, Personal Computer, Microwave oven, Air Conditioner etc

  • Household contents like Clothing, curtains, furniture,crockery,, carpet, fixtures and fittings

  • Jewelry worn by you/your family members residing with you will be covered

Aside from the protection of the above-mentioned home contents a package policy also safeguards a home from natural and man-made perils like;

  • Fire

  • Earthquake or any other natural convulsions

  • Lightning

  • Flood or storm or cyclone

  • strike, riot, or damages due to malicious activities

  • Implosion or explosion

  • Rockslide or landslide

 

What is the right time of buying a home insurance?

The devastating earthquake that took place couple of months ago in Nepal and some parts of India caused a ripple in the home insurance sector in India. Most of the public and private insurance organisations in India experienced a rise in inquiry for home insurance from many residential complexes, cinema halls and commercial buildings after multiple tremors that shook some parts of the country. Hence, it is the right time to have your dream home insured rather than waiting for another natural convulsion that can have your home demolished.

 

If you don’t want to learn the hard way and keen to stay protected from expenses for rebuilding your house if god forbid, it is damaged due to earthquake or any other natural calamity, a home insurance is a must for you. You just have to visit an insurance comparison portal and select your preferred type of insurance and submit details. You can choose from an array of home covers as per your needs and budget. You can also purchase the policy right from these comparison portals.

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