SECURING YOUR HOME

A home insurance policy will prove to be a blessing if your house suffers damage in a natural disaster or you lose precious belongings to theft

- Aprajita Sharma

Natural calamities are on the rise. This year has witnessed floods in Bihar, torrential rains in Maharashtra, Gujarat and Karnataka and Cyclone Amphan sweeping West Bengal and parts of Odisha. Delhi, which falls in earthquake seismic zone 4, has experienced a series of tremors. The devastation from such calamities may not only be in terms of loss of lives but damage to one’s home and belongings. While life insurance will protect a family in case of a member’s demise, what about your home and its precious belongings? Not many people know that they can insure their homes—the physical structure as well as belongings—for a low premium. One can even take insurance cover just for the structure or belongings in the house. For example, tenants may only want insurance for their valuables.

SCOPE OF COVERAGE

A typical householder policy consists of 10 sections, covering various risks:

Section 1: Fire and allied perils, for house building and household contents.

Section 2: Burglary and housebreak, including larceny or theft (belongings only).

Section 3: All risk against valuable items.

Section 4: Plate glass cover (fixed).

Section 5: Breakdown of domestic appliances.

Section 6: Television sets (all risks) cover.

Section 7: Pedal cycle (all risks) cover.

Section 8: Baggage.

Section 9: Personal accident insurance.

Section 10: Public liability and workman compensation risks.

As per norms, it is mandatory to include at least three to four sections in the policy, with the Section 1 (fire and allied perils) cover against household belongings compulsory. The more the sections chosen, the more comprehensive the insurance cover becomes.