Home Insurance |
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Home insurance, also commonly called hazard insurance or homeowners insurance
(often abbreviated in the real estate industry as HOI), is the type of property
insurance that covers private homes. It is an insurance policy that combines
various personal insurance protections, which can include losses occurring to
one's home, its contents, loss of its use (additional living expenses), or loss
of other personal possessions of the homeowner, as well as liability insurance
for accidents that may happen at the home. It requires that at least one of the
named insured occupies the home. The dwelling policy (DP) is similar, but used
for residences which don't qualify for various reasons, such as
vacancy/non-occupancy, seasonal/secondary residence, or age. It is a multiple
line insurance, meaning that it includes both property and liability coverage,
with an indivisible premium, meaning that a single premium is paid for all
risks. Standard forms divide coverage into several categories, and the coverage
provided is typically a percentage of Coverage A, which is . The insurance
policy itself is a lengthy contract, and names what will and what will not be
paid in the case of various events. Typically, claims due to floods, or war
(whose definition typically includes a nuclear explosion from any source) are
excluded. Special insurance can be purchased for these possibilities, including
flood insurance. Insurance must be updated to the present and existing value at
whatever inflation up or down, and an appraisal paid by the insurance company
will be added on to the policy premium. Fire insurance will require a special
premium charge, plus the addition of smoke detectors and on site fire
suppression systems to qualify.
The home insurance policy is usually a term
contract—a contract that is in effect for a fixed period of time. The payment
the insured makes to the insurer is called the premium. The insured must pay the
insurer the premium each term. Most insurers charge a lower premium if it
appears less likely the home will be damaged or destroyed: for example, if the
house is situated next to a fire station, if the house is equipped with fire
sprinklers and fire alarms. Perpetual insurance, which is a type of home
insurance without a fixed term, can also be obtained in certain areas. |
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Calculation of Home Insurance Amount/Premium: |
The amount of home insurance cover needed is calculated keeping a number of
factors in mind. Area of house (in sq.ft.) , location of property, approximate
rate of construction (in Rs./sq.ft.) are generally considered by insurance
companies. A property more than 50 years old is not insured. Another point
considered while insuring a home is that companies only consider
'Pukka/Permanent' construction. Keeping the above factors in mind, an individual
has to pay the premium every month/quarter/six months according to the sum
insured.
Insurance companies come out with different home insurance policies to suit the
unique needs of its customers. While some policies have a standard/fixed cover,
others are flexible package, including a basket of coverages. The premium for
such covers is higher than the standard cover. This is because the risk of the
company insuring is more. |
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Home Insurance Claim Procedure: |
In the event of some burglary, theft, fire, the claims of individuals are
settled fast by companies. Leading insurance companies are launching 24 hours
helplines and call centers to fasten the claim process and provide better
service to customers.
• The call center registers the claim request after the individual furnishes all
personal details and details of the policy taken.
• A company appointed surveyor inspects the site and submits the loss report.
• In case a surveyor is not appointed, an individual must submit documents to be
insured to the company.
• The claim is processed by company within 7-15 days.
• On approval of the claim, a letter is sent to the insured giving the approved
amount of settlement.
• Payment cheque is released. |
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Documents Required for Home Insurance Claim: |
1. Duly completed and signed claim form
2. Copy of FIR
3. Final Report from police
4. Copy of all invoices, price lists
5. Letter of Indemnity from Insured |
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For Third Party Claims: |
1. Claim form duly signed
2. RC copy of the vehicle
3. Driving license copy
4. Original policy copy
5. Original FIR copy
6. RTO transfer papers duly signed, mentioning that the vehicle cannot be
located |
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