Skip to main content

How to get Home Insurance?

 

How to get insurance?

 

Considering the importance and significance of a home for its owner, it is mandatory for him to get it insured. Home insurance can be obtained from any home insurance company after comparing its policy with that of others. General insurance companies offer policies that cover your home against natural calamities such as fire, floods, earthquakes, or land slides. You have to pay a premium based on the value of your home, belongings and rest assured.

Home insurance policies offer two main covers - the structure of your house and the contents. While structure refers to the walls, floors, ceiling and fixtures of your home, content refers to your belongings such as electronic equipments, domestic appliances, furniture and jewellery. You can buy a cover for either or both of these categories.

It is important to understand how value of sum assured for insurance is arrived at. The valuation for the structure is done on reinstatement basis. This means, the value required to replace your old item with a new one. The structure of your home is usually valued on this basis because, the policy will handle expenses related to reconstruction or fixing the house. It doesn't cover the market value of the house.

In case of contents, the claim is evaluated on a market value basis. This is the value of the item if you were to sell it just before the loss. Essentially, it is the purchase value minus the depreciation. It is important that you make a list of all contents of your home. Attach bills of purchase if possible. This will make the claim procedure easier as it will help investigation.

The general practices involved in home insurance as followed by the home insurance companies in India are as under:

Areas Covered Under Home Insurance

The home insurance policies protect against various natural and man made disasters including:

  • Thefts and Burglaries
  • Fire
  • Earthquake
  • Floods
  • Explosions etc.

Calculation of the Home Insurance Premium or Amount

The factors to be kept in mind while estimating the insurance premium and accepting the home insurance quote being offered by the insurance company are:

  • Area of the House (calculated in sq.ft.)
  • Location and neighborhood
  • Approximate rate of construction (calculated in Rs. per sq.ft.)
  • Permanent construction on the land
  • The time period offered for the insurance. Property more than 50 years old is not covered under home insurance
  • Whether the insurance policy offered is standard or not.

Home Insurance Claim

In case of the above-mentioned disasters, the home insurance companies settle the claim as quickly as possible. The claim settlement procedure under home insurance includes:

  • Personal information like the contact details
  • Details of the policy undertaken
  • Inspection of the site by the company appointed surveyor
  • Claim is processed within two weeks of the complete documentation
  • Claim approval  letter is sent to the claimant with the settlement amount indicated therein
  • Home insurance claim cheque is issued to the policy holder.

Documentation 

The home insurance companies follow fixed procedure to settle the insurance claim. You are required to submit completed documents in order to fasten the claim procedure. These include:

  • Duly completed and signed claim form
  • Copy of the FIR
  • Letter of indemnity

While the policy covers may seem comprehensive, you should look out for policy exclusions that usually stay hidden. Insurance companies usually don't cover any conscious damage to property. Valuables like gold, silver and bullion are not covered unless you opt for a special cover for these. 
Also watch out for certain clauses in the fine print. Some companies don't let you make a claim for damages, if you had left your home unoccupied for more than 30 days, and the calamity occurred during that period.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...
Read more

Gold: It is safe & secure

RETURNS ON GOLD & ITS ETF’s RISE WHILE most of the popular asset classes are going through bad times, the yellow metal shines on. In fact, in the last one year, gold has given a return of more than 25% and currently trades at Rs 14,695 per 10 gm. Even gold exchange traded funds ( ETFs ) have appreciated substantially. Gold Gold Benchmark Exchange Traded Scheme ( BeES ) and Kotak Gold ETF have given more than 25% returns each in the last three months. Even as the equity markets have taken a hit with the Sensex losing around 46% in the last one year and real estate prices also witness a correction, investors’ preference has shifted to safe havens such as gold. On an average, most of the diversified equity mutual funds have fallen and real estate developers are offering discounts. Thus gold remains the safest bet. The appreciation in the gold prices is mainly due to its safe haven status. The key reason for gold to go up is lack of other investment opportunity. There is also a risk in...
Read more

More on Mutual Funds

What Is a Mutual Fund ? A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. Anybody with an investable surplus of as little as a few thousand rupees can invest in Mutual Funds. These investors buy units of a particular Mutual Fund scheme that has a defined investment objective and strategy The money thus collected is then invested by the fund manager in different types of securities. These could range from shares to debentures to money market instruments, depending upon the scheme's stated objectives. The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.   What Are The Types of Mutual Fund Scheme...
Read more

PF e-Passbook

  Provident Fund e-Passbook   The Employees Provident Fund Organisation now runs an e-passbook service that enables members to log in and access their provident fund accounts . This facility enables tracking of the money and ensuring that the employer's contribution has been deposited into the account. This facility is available to those whose accounts are with the central provident fund commissioner for maintenance and can be availed at members.epfoservices.in . Registration A member can register at the portal easily by using PAN , Aadhar or passport number as the log in and the mobile numbers as the PIN . This combination enables easy retrieval of information. Accounts After logging in, the member has to choose the state where the employer is located, and enter the code number of the employer, account number and name. These details can be obtained from any existing PF document . PIN To download the passbook, the member will request...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now