Home insurance in India protects your house and its contents from various risks, including natural calamities (floods, earthquakes, fires), and man-made events like theft, burglary, riots, etc.
Key aspects of home insurance in India:
- Coverage:
- Structure: Covers damages to the building itself, including walls, floors, windows, plumbing, electrical fittings, etc.
- Contents: Protects your personal belongings within the home, such as furniture, appliances, electronics, jewelry, and other valuables.
- Optional/Add-on Covers: Many insurers offer additional protection for specific needs, such as terrorism cover, personal accident cover, or loss of rent,
- Benefits:
- Financial Protection: Safeguards your savings from potentially high costs of repairs, reconstruction, or replacing damaged/stolen belongings.
- Peace of Mind: Offers reassurance that your home and belongings are protected against unforeseen events.
- Liability Coverage: Some policies include liability coverage, shielding you from legal claims due to accidents or injuries on your property.
- Mandatory Status: Home insurance is not mandatory by law in India, unlike motor insurance. However, banks and housing finance companies often require or strongly recommend property insurance when you take out a home loan.
- Cost: Home insurance premiums in India typically range between Rs. 2,000 to Rs. 5,000 annually, depending on factors like coverage amount, type of risks covered, and location. A basic fire insurance policy might cost around ₹1200 – ₹2500 per year for coverage of ₹10-20 lakh, notes HDFC ERGO General Insurance.
- Claim Process: The claim process generally involves reporting the incident to your insurer, submitting necessary documents (like an FIR in case of theft), and possibly undergoing a survey of the damages, says SBI General Insurance. For claims less than Rs 1 lakh, a digital or video survey may be conducted, according to a YouTube video.
