WHICH is the most precious asset you have to protect this monsoon? Undoubtedly it's your home. After experiencing several floods over the past few years, water logging in homes has also become a common affair. With monsoon just a few days away, may be it's time to run for cover. The possibility of your house getting damaged by floods may not seem like an incident of rarity if you recall the deluge that hit Mumbai on July 26, 2005. If you defend it as one-time deluge, such once-in-a blue-moon affair can cost you a fortune.
HOME insurance policies are offered by general insurance companies that cover your home against risks from natural calamities such as fire, floods, earthquakes, or land slides. It also covers the structure of the house alone, or your belongings such as jewellery, furniture, electronic appliances etc, or even both. Some policies also cover your rent expenses if you have to move out to another house because your actual house has been damaged due to any of the covered perils listed by your insurer.
PREMIUMS are reasonable for home insurance when you compare it with the single largest investment of your life. It works out to approximately Rs 60 per lakh for protecting the house structure. Even for furniture, the premium is Rs 60 per lakh. For electronic appliances, the premium amount will be 1% of the value of electronic goods. The premium depends on a variety of factors related to the size of the home, geographical location, type of construction, etc.
DISCOUNTS for opting for multiple sections within the policy are built in the plans. You can get discounts of 15-25% on premium payments if you sign up for more than four to six sections of the home insurance policy.
WHILE insuring your home, the insurer always looks at reconstruction value. Reconstruction value is the cost you incur for redevelopment if your house gets damaged. This value is different from the market value, which is usually a function of demand and supply.
SUM insured is calculated by multiplying the built-up area of your home with the construction rate per sq feet. For example, if the built-up area of your house is 800 sq feet and the construction rate is Rs 800 per sq feet then the sum insured for your home structure would work out Rs 6,40,000. The insurers evaluate contents of your home — be it furniture, durables, clothes, utensils etc — as per the market value minus depreciation. However, most insurers do not apply depreciation to jewellery.
IN CASE of any loss or damage to the home, you have to immediately inform the insurance company or your agent. Submit a written claim document to the insurance company. This claim document should contain a detailed account of the articles lost/damaged, the actual value of each article. Then your claim request will be sent to the company's claims department. The insurer appoints a surveyor who will submit the final survey report (FSR) along with the documents submitted by you. On receipt of documents, the claims department processes the claim. On approval of the claim, a letter is send to the insured giving the approved amount of settlement along with the discharge voucher.
Payment cheque is released on receipt of the signed discharge voucher. The documents you have to submit will vary from reason to reason. However, they broadly include the filled claim form, photocopy of the policy, final police report and copy of all invoices, repair estimates etc.
