Home
Insurance |
As
per guidelines by the National Disaster management Authority
a natural calamity can come at any time. The type of calamity
depends upon the topography of the areas.
It takes a whole lifetime of savings to build a house.
And one cannot predict a natural calamity like earthquake.
In recent times we have seen what disaster an earthquake
or any other natural calamity such as floods, landslides
and torrential rains can wreck. Hence home insurance is
very important.
|
| Home insurance
policy also protects against other hazards like gas cylinder
explosion, fire due to electric short circuit as well as
man-made disaster like burglary. Home insurance policy can
be divided into two parts: |
| •
Building structure |
| • Contents
inside the home |
| Insurance Covers for a
Building Structure are : |
| • The
Fire and Special disaster cover |
| This
is a comprehensive packaged cover that covers damages to
the structure of home due to |
|
Fire |
|
Storm, tempest, flood & inundation |
|
Riot, strike & malicious damage |
|
Lightning |
|
Explosion & implosion |
|
Aircraft damage |
|
Damage due to impact by vehicles |
|
Subsidence, landslides and rockslides |
|
Bursting and/or overflowing of water
tanks, apparatus and pipes |
|
Missile testing operation |
|
Leakage from automatic Sprinkler
installations |
|
Bush fire |
| •
Earthquake Cover |
| Covers
damages to the structure of your house due to earthquake. |
| •
Terrorism Cover |
| Covers
damages to the structure of your house due to acts of terrorism. |
A
home insurance does not cover the market value of the
home. The price of the home includes the cost of the land
and the cost of constructing the building structure on
this land and the land cannot be insured. The insurance
cover is only for the cost of constructing the building.
The sum insured is calculated by multiplying your home
area by the construction rate per sq. feet. |
| Insurance Cover for
Contents inside the Home |
This
cover is only for damages or loss of the contents inside
the home -electronic and electrical goods, furniture and
fixtures, clothing, jewelry and any other contents inside
the home. The covers that can be taken for the contents
are as follows: |
| •
The Fire and Specials Perils Cover |
| •
Earthquake Cover |
| •
Burglary |
| •
Loss / damage to contents due to burglary or an attempted
burglary |
| •
Loss of jewelry, gold ornaments, silver articles and precious
stones kept under lock & key |
All
the contents are covered on the market value of the items.
This means that if there is a loss, the claim would be
paid on the value of purchasing a similar new item, minus
depreciation. |
