Your Most Asked Questions on Property Insurance

Things to Consider in Property Insurance

Insurance is never an added burden. Your property is an asset that you hold dear and needs protection too. However, before you decide to invest in insurance here is a look at the most important elements you have to consider.

Who is eligible for a home insurance policy?

Any person who is a resident in India and is the owner of a property can avail of a home insurance policy. This is applicable if you are staying in an apartment too.

Why do I need homeowners insurance?

Your home is one of your most valued assets and ensuring it is good if some unfortunate incidents happen. However, since this is not mandated like a vehicle loan, many people skip this process. This is especially good given the rapid change in climate conditions.

Are there different types of property insurance policies?

Yes. There are different types of policies for homeowners. The most common ones cover the spectrum mentioned below.

  • Standard Fire and Special Perils Policy
  • Home Structure/Building Insurance
  • Public Liability Coverage
  • Personal Accident
  • Contents Insurance
  • Burglary & Theft
  • Tenants’ Insurance
  • Landlords’ insurance

How does one fix the insurance amount?

In India, there are two methods to fix the insurance amount for your property. If you are opting for the amount based on the market value of the property, the depreciation of its value is levied on the asset in case of a loss. If you are opting for the reinstatement value, then the insurer will pay the cost of replacement depending on the ceiling mentioned in the policy. Pick your option wisely

What are my responsibilities as a buyer of property insurance?

Buying insurance does not mean that you do not care about your property. You have to do regular maintenance and all the necessary work required for the well-being of your property. This also means that you have to take all necessary precautions to prevent the losses even if you are insured.

What if you have a grievance?

The first thing to do is to contact your insurer. This can be done online or by dropping in. The insurer has to legally acknowledge your complaint within 3 working days and attempt to resolve the issue within 15 days. If you feel that the company has not addressed your grievance, you can raise an issue with the Insurance Regulatory and Development Authority of India (IRDAI).