Home Insurace

BACK GROUND OF THE INSURANCE SECTOR

Insurance is over one and one-half centuries old in India. The First general

insurance company, Titan Insurance Company Ltd., was established in1850.Life

insurance came to India from the U.K. in 1880, with the establishment of the

Oriental Life Assurance Company in Calcutta.  By 1938,the insurance market was

buzzing with 176 companies--both life and non-life. In 1956, the Government of

India recognized that malpractice had entered the management of the life

insurance.  Consequently, the life insurance industry was nationalized under the

Life Insurance Corporation (LIC) of India. Although efforts were made to maintain

an open market for the general insurance industry by amending the Insurance Act

of 1938 from time to time, malpractice escalated beyond control. Thus, the general

insurance industry was nationalized in 1972.

RECENT INITIATIVES

Privatization is expected to foster competition, innovations and greater awareness

on the need for buying insurance services and variety of products. The IRDA bill

Passed by the parliament was an important development in the field of Insurance

business. The IRDA Act marks an end to the monopoly of the government in the

insurance sectors by opening it up to private players. It gives priority in the

Utilization of the policyholders funds for development of society and Infrastructure

sector.

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INTRODUCTION OF HOME INSURANCE

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

up dated 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 contract²a 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

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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. In

the United States, most home buyers borrow money in the form of a mortgage

loan, and the mortgage lender always requires that the buyer purchase homeowners

insurance as a condition of the loan, in order to protect the bank if the home were

to be destroyed. Anyone with an insurable interest in the property should be listed

on the policy. In some cases the mortgagee will waive the need for the

mortgagor to carry homeowner's insurance if the value of the land exceeds the

amount of the mortgage balance. In a case like this even the total destruction of

any buildings would not affect the ability of the lender to be able to foreclose and

recover the full amount of the loan. The insurance crisis in Florida has meant that

some waterfront property owners in that state have had to make that decision due

to the high cost of premiums. See Citizens insurance.

HISTORY

The first homeowner’s policy parse in the United States was introduced in

September 1950, but similar policies had existed in Great Britain and certain areas

of the United States. In the late forties US Insurance law was reformed and during

this process multiple line statutes were written, allowing homeowners policies to

become legal. Prior to the 1950s, there were separate policies for the various perils

that could affect a home. A homeowner would have had to purchase separate

policies covering fire losses, theft, personal property, and the like. During the

1950s, policy forms were developed allowing the homeowner to purchase all the

insurance they needed on one complete policy. However, these policies varied by

insurance company, and were difficult to comprehend. The need for

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standardization grew so great that a private company based in Jersey City, New

Jersey, Insurance Services Office, also known as the ISO, was formed in 1971to

provide risk information and issued a simplified homeowners policy for resell to

insurance companies. These policies have been amended over the years.

IMPORTANCE OF HOME INSURANCE

Home Insurance has evolved as one of the most enterprising sector in the real-

estate scenario in India. As more and more investments are made in the real estate

sector, there has been a rising demand for home finance and home insurance

simultaneously. The importance of home insurance in the protection of your house

and valuable possessions is as importance as protecting your family from any

hazards that act as threat to life and property. The policy provided by the home

insurance companies act as a guarantee that combines insurance of the home, its

contents the personal possessions of the homeowner, risk attached to burglary; as

well as liability insurance for accidents that may happen at the house like fire and

natural calamities. The extent of the risk covered however depends on the type and

content of the policy. A generally configured home insurance policy usually covers

calamities in two categories -natural and man-made. Home insurance is important

as it not only provides you with financial protection against any damage your

property might incur - to both your buildings and the contents; but it can be

considered a small amount of money you pay in lieu of the peace of mind that

brings with it and the content that your property is insured and protected against all

hazards. Though the importance of having a home insurance policy cannot be over

emphasized, one cannot predict any disasters or unavoidable incident that might

happen to one's home. Home insurance not only protects the homeowner from total

loss when disaster occurs, but also protects the home owner in the event that their

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home is damaged by acts of God or if a person becomes injured, the home owner

will not be held solely liable for all of the damages. The home insurance policies

usually cover home under the all risks clause unless otherwise noted in an

exclusion clause. For instance, a home can be covered for fire damage, earthquake

damage, and acts of vandalism under an all risks policy, but if the policy states that

the home is not covered for deluge or say tsunami, than water damage due to the

mentioned natural calamity would not be covered. To summarize it, the home

insurance policy is important for the homeowner as it ultimately gives the home

owner a sense of security to protect his family and property against

calamities. Home insurance not only protects the homeowner from total loss when

disaster occurs, but also protects the home owner in the event that their home is

damaged by acts of God or if a person becomes injured, the home owner will not

be held solely liable for all of the damages. The home insurance policies usually

cover a home under the all risks clause unless otherwise noted in an exclusion

clause. For instance, a home can be covered for fire damage, earthquake damage,

and acts of vandalism under an all risks policy, but if the policy states that the

home is not covered for deluge or say tsunami, than water damage due to the

mentioned natural calamity would not be covered. To summarize it, the home

insurance policy is important for the homeowner as it ultimately gives the home

owner a sense of security to protect his family and property against calamities.

HOME INSURANCE IN INDIA

The Home insurance sector in India is at a nascent stage as compared to

other insurance sectors in the country. With the real estate boom at its prime in

India, home finance has become an indispensable part of real estate functioning.

Moreover, the housing finance companies (HFCs) are also playing an important

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role in the evolvement of the home insurance company in India. Due to the new

regulations by the finance companies making home insurance mandatory

for seeking home loans in India, the home insurance sector has recently seen

massive revival in business. Industry analyst say that, if the home loans and

insurance sector continue to facilitate each other’s growth, then the insurance

segment is soonest to achieve a 100% growth. The latest growth curve shows the

home insurance premium touching the Rs 150 core-mark, registering a growth of

25% in the last financial year; and if the situation prevails, the trend is predicted to

continue. As the growth curve of investments in Indian real estate sector escalates,

more and more insurance companies are making their foray into the home

insurance sector. This has also initiated a trend of insurance companies from across

the globe making their foray into Indian market either as individual entity or in

joint ventures with the local existing insurance companies. Home insurance and

real estate has of late become conspicuous of the buzz it has created in the realty

industry in India. Adding to the list of leading and existing public sector companies

in the home insurance business like New India Assurance, Life Insurance

Company of India, United India Insurance, Oriental Insurance and National

Insurance Company; is a list of private insurance companies which are set to play a

pivotal role in the growth of the sector. The most thriving amongst those are

mostly joint venture companies like ICICILombard General Insurance, Bajaj

Allianz General Insurance, Tata AIG General Insurance Company Ltd, IFFCO-

TOKIO and Royal Sundaram Alliance to name few. Considering the feasibility of

a largely huge and growing market, the home insurance sectors has lately expanded

its business beyond the metros to the Tier I and II cities where real estate

development is expected to flare up in the years to come. The booming real estate

sector in India is considered to be one of the most encouraging factors in the

resurgence of the home insurance sector. However, apart from the real estate

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factor, the recent spate of calamities that has hit the country like the earthquakes,

tsunami, the consistent flood every year in most parts of the country and the

exceptional cases of 'deluge' in Mumbai in 2005 has made people opt for home

insurance like never before.

TYPES OF HOME INSURANCE

Home insurance in India has a key role to play in the protection of your house

or building structure and valuable possessions or building content. Home insurance

policy is a guarantee provided by the insurance company that combines insurance

on the home, its contents the personal possessions of the homeowner, as well as

insurance covering accidents that may happen at the house like fire and natural

calamities. The coverage of the risk however depends on the type of policy. There

are mainly two types of home insurance in India.

1. Building insurance

2. Content insurance

Buildings Insurance:

Buildings insurance is an important part of property investments. The mandatory

obligation made by the housing finance companies has strengthened the need

for insurance in conjunction with property investments. Insuring the building

or building structure is important since it protects you against inevitable losses in

case your building is destructed and debilitated in any natural or man-made

calamities. The housing finance companies are insisting on building insurance so

that in the event of a disaster it can be repaired or rebuilt, as lenders don't want to

be left without security for their loan. A home insurance policy should cover

expenditures rebuild your home in the event of it being totally destroyed or

damaged to the point that complete rebuilding is necessary (in eventualities like

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earthquake, fired).Different home insurance companies have different

specifications for policy coverage. It is recommended that you check the terms and

conditions of the policy. Home insurance companies in India mostly have home

insurance plans that insure the building structure of your home for its

reconstruction value. This is the cost incurred to reconstruct the home if it is

damaged and not for its market value such as the cost of land etc. Sum insured is

calculated by multiplying the built up area of your home with the construction rate

per sq. feet Home insurance plan for buildings are usually meted out on conditions

as per the policy terms arising out of conditions like

Fire, Lightening, explosion of gas in domestic appliance

Bursting and overflowing of water tanks, apparatus or pipes.

Riot, Strike, Malicious or Terrorist Act

Flood, Inundation, Storm, Typhoon, Hurricane, Tornado or Cyclone

Damage due to earthquake, subsidence and Landslide (including

Rockslide).

Damage caused by Aircraft & Impact damage

Third party liability and personal accident.

Content Insurance:

Content insurance may be considered optional but with the threat of burglaries,

natural disasters and fire, content insurance covers are rising in demand. Contents

insurance for home insurance plans includes protection to movable goods,

possessions or contents in the house; anything that is not a fixed parts of

your home, for example your appliances, electronic goods, furniture and clothing.

Similarly as the modalities adopted in building insurance, different home insurance

companies in India have different policies for content insurance. Most companies

comply with insurance plans where a value equivalent to the market value

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of household contents i.e. the value for which this used item could be bought or

sold in the market is covered as insurance. The insured amount given against the

perils for building or structure and its contents is assessed either on 'reinstatement

value ‘basis -which is the value for replacing the item with a new item of same

type and make; or on 'market value' basis -which is the reinstatement value less

depreciation depending on the age of the item. Content insurance offers protection

against various perils including:

Fires

Storms/flooding

Explosions

Theft and vandalism

Valuables such as jewellery, cameras and watches against all risks,

Cover against all kinds of accidental breakage of plate glass fixed in doors and

window frames. Loss/damage to domestic appliances due to electrical and

mechanical breakdown .Home insurance can be availed for both building and

content combined. However, most home insurance plans in India excludes

underinsurance of the property value, willful destruction of property, loss, damage

or destruction caused by war perils, wear and tear and atmospheric conditions etc.,

damage due to an act of terrorism(unless specifically covered) and losses or

damages incurred when premises are unoccupied beyond 60 consecutive days.

HOME CLAIM PROCEDURE

1. Inform the call center with policy detail

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2. Provide relevant information, which includes your policy and other details

regarding your claim. Consequently, your claim request is authenticated and

is escalated to the company's claims department.

3. Company's claims department validates and registers the request. They

appoint a surveyor within 48 hours.

4. The insured submits all the relevant documents to the surveyor. The

surveyor submits the Final Survey Report (FSR) along with the documents

within 7 days.

5. If surveyor is not appointed, the company's claims department sends a

letter of requirement for submitting documents to the insured within 24

hours of claim intimation.

6. On receipt of documents, the claims department processes the claim within

7days. On approval of the claim, a letter is send to the insured giving the

approved amount of settlement along with the discharge voucher.

7. Payment cheque is released on receipt of the signed discharge voucher.

CLAIMS COVERED UNDER HOME INSURANCE

Insurance claim amount is always something creeping up on the mind of both

insurer and the insurance company. It is more evident in case when there is a

possibility of you filing a claim to recover the amount for that claim. If you

provide sufficient proof and necessary documents for your home insurance claim,

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there is a fair chance you can get the amount by the Home Insurance company

or provider. Also, submitting a claim on your home policy is a relatively quite

simple process. The steps involve contacting your agent, filling out a claim form

and waiting for an appointed arbiter to verify the facts and judge the authenticity of

the damage. If the damage is really worth notice, it's a matter of few days to get the

claimed amount through check. Most claims are handled quickly. Sometimes the

claim process can really be time taking and frustrating. Also keep in mind that

most insurance providers don't enjoy the idea of two or three claims in a short span

of time and you stand almost certain chance of getting cancellation of these claims.

Try to stay away from high risks, so you should be sure to make only those claims

that are absolutely necessary. Or, if you are sure about your rights to claim and

corresponding damage or loss, just go full throttle to register a claim. Only

remember that there can sometimes be unpleasant repercussions. Here are some

general tips for handling auto and home insurance claims:

Know your policy.

Stake your claim quickly.

Avoid using the word "lawyer."

Keep a copy of the police report.

Get an estimate or two.

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DOCUMENTS REQUIRED

Documents are the most valid and appropriate proof for your home

insurance claims. Always keep your documents in place and ready both

before you need to make a claim and when you need to make one. It is

always advisable to save the receipts for items you buy. This will give the

indication and estimation of the total cost of items and damage claim amount

accordingly. Photographs and/or videotapes of your home (both in pre- and

post-disaster form) can also be beneficial. These will help you establish an

inventory of your belongings should the need arise. Always save photos or

videos of the damage before you begin cleaning up.List of Documents

Required

1. Duly completed and signed claim form2.

2. Xerox copy of policy3.

3. Copy of FIR 4.

4. Final Report from police5.

5. Copy of all invoices, price lists, repair estimate

TYPES OF POLICIES AS PER ISO

Currently, the ISO has seven standardized homeowners insurance forms in general

use:

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HO1:

Basic Homeowner Policy A basic policy form that provides coverage on a home

against 11 listed perils; contents are generally included in this type of coverage, but

must be explicitly enumerated. The perils include fire or lightning, windstorm or

hail, vandalism or malicious mischief, theft, damage from vehicles and aircraft,

explosion riot or civil commotion, glass breakage, smoke, volcanic eruption, and

personal liability. Exceptions include floods, earthquakes.

HO2:

Broad Homeowner Policy A more advanced form that provides coverage on a

home against 17 listed perils (including all 11 on the HO1). The coverage is

usually a "named perils" policy, which lists the events that would be covered.

HO3:

All Risk Homeowner Policy The typical, most comprehensive form used for

single-family homes. The policy provides "all risk" coverage on the home with

some perils excluded, such as earthquake and flood. Contents are covered on a

named peril basis.

HO4:

Renter's Insurance The ³Tenants´ form is for renters. It covers personal property

against the same perils as the HO2.

HO6:

Condominium policy the form for condominium owners.

HO8:

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Older Houses The ³Modified Coverage´ form is for the owner-occupied older

home whose replacement cost far exceeds the property’s market value.

COVERAGE RATES

According a 1998 NAIC (National Association Of Investors Corporation)

report,83% of homes were covered by owner-occupied homeowners policies. Of

these, 87% had the HO3 Special and 9% had the more expensive HO5

Comprehensive. Both of these policies are "all risks" or "open perils", meaning that

they cover all perils except those specifically excluded. 3% were the HO2 Broad,

which covers only specific named perils. Others include the HO1 Basic and the

HO8 Modified, which is the most limited in its coverage. HO8, also known as

older home insurance, is likely to pay only actual cash value for damages rather

than replacement. The remaining 13% of home insurance policies were covered by

renters or condominium insurance. Two-thirds of these had the HO-4 Contents

Broad form, also known as renters insurance, which covers the contents of an

apartment not specifically covered in the blanket policy written for the complex.

This policy can also cover liabilities arising from accidents and intentional injuries

for guest’s as well as passers-by up to 150' of the domicile. Common coverage

areas are events such as lightning, riot, aircraft, explosion, vandalism, smoke, theft,

windstorm or hail, falling objects, volcanic eruption, snow, sleet, and weight of

ice.The remainder had the HO-6 Unit-Owners policy, also known as a

condominium insurance, which is designed for the owners of condos and includes

coverage for the part of the building owned by the insured and for the property

housed therein. Designed to span the gap between the coverage provided by the

blanket policy written for the entire neighborhood or building and the personal

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property inside the home. The liability coverage may cover incidents up to 150 feet

from the insured property, all valuables within the home from theft, fire or water

damage or other forms of loss. The Associations Bylaws determine the total

amount of insurance necessary. In addition, about 2.4% of homes were covered by

a dwelling fire policy which covers property damage to a structure and is typically

sold to noncommercial owners of rented houses. It may also cover the owner's

personal property (such as appliances and furnishings). The owner's liability is

generally extended from their own primary home insurance, and does not comprise

part of the Dwelling Fire policy.

CLASSES OF COVERAGE

For each policy, there are typically six classifications of coverage. These are based

on standard Insurance Services Office or American Association of Insurance

Services forms.

Section I ² Property Coverage

Coverage A - Dwelling

Covers the value of the dwelling itself (not including the land). Typically,

coinsurance clause states that as long as the dwelling is insured to 80% of actual

value, it will be replaced. This is in place to give a buffer against inflation. HO-4

(renter's insurance) typically has no Coverage A, although it has additional

coverage for improvements.

Coverage B - Other Structures

Covers other structure around the property which are not used for business, except

as a private garage. Typically limited at 10% of the Coverage A.

Coverage C |-Personal Property

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Covers personal property, with limits for the theft and loss of particular classes of

items (e.g., $200 for money, banknotes, bullion, coins, medals, etc). Typically 50

to 70% of coverage A is required for contents, which means that consumers may

pay for much more insurance than necessary. This has led to some calls for more

choices.

Coverage D - Loss of Use/Additional Living Expenses

Covers expenses associated with additional living expenses (i.e. rental expenses)

and fair rental value, if part of the residence was rented, however only the rental

income for the actual rent of the space not services provided such as utilities.

ADDITIONAL COVERAGES

Covers a variety of expenses such as debris removal, reasonable repairs, damage to

trees and shrubs for certain named perils (excluding the most common causes of

damage, wind and ice), fire department changes, removal of property, credit card /

identity theft charges, loss assessment, collapse, landlord’s furnishing, and some

building additions. These vary depending upon the form.

EXCLUSIONS

In an open perils policy, specific exclusions will be stated in this section. These

generally include earth movement, water damage, power failure, neglect, war,

nuclear hazard, intentional loss, and concurrent causation (for HO-3).

THREE WAYS TO INSURE HOME.

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When you insure your home, you should insure your home for the total amount it

would cost to rebuild your home if it were destroyed. If you don't have sufficient

insurance, your insurance company may only pay a portion of the cost of replacing

or repairing damaged items. There are three ways to insure the structure of your

home:1.

Replacement Cost: Insurance that pays the policyholder the cost of replacing the

damaged property without deduction for depreciation, but limited to a maximum

dollar amount.

2. Guaranteed Replacement Cost:

Insurance that pays the full cost of replacing damaged property, without a

deduction for depreciation and without a dollar limit. This coverage is not

available in all states and some company’s limit the coverage to 120 percent of

the cost of rebuilding your home. This gives you protection against such things

as a sudden increase in construction costs due to a shortage of building

materials.

3. Actual Cash Value:

Insurance under which the policyholder receives an amount equal to the

replacement value of damaged property minus an allowance for depreciation.

Unless a homeowner’s policy specifies that property is covered for its

replacement value, the coverage is for actual cash value. For a quick estimate

of the amount to rebuild your home, multiply the local building costs per

square foot by the total square footage of your house. To find out the building

rates in your area, consult your local builders association or real-estate

appraiser.

Factors that will determine the cost to rebuild your home:

1. Local construction costs

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2. The square footage of the structure

3. The type of exterior wall construction: frame, masonry (brick or stone)

or veneer

4. The style of the house (ranch, colonial)

5. The number of bathrooms and other rooms

6. The type of roof

7. Attached garages, fireplaces, exterior trim and other special features like

arched windows.

Also be sure to check the value of your insurance policy against rising local

building costs each year. Ask your insurance agent or company representative

about adding an Inflation Guard Clause to your policy. This automatically adjusts

the dwelling limit when you renew your policy to reflect current construction costs

in your area. Also be sure to increase the limit of your policy if you make

improvements or additions to your house.

COMPANIES PROVIDING HOME INSURANCE

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ICICI Home Insurance

It is imperative that you secure your home from natural and man-made

catastrophes. Before Applying for Home Insurance you should know about

Importance of Home Insurance. Our Home Insurance Plan ensures you peace

of mind by protecting the structure and the contents of your home.

Policy Details & Coverage You can choose to buy insurance for only the building

(structure) of your home, or only the contents (belongings) or both. The policy

covers the losses to the structure and contents of your home due to any natural and

man-made calamities. The calamities covered are:

Fire

Riot, strike & malicious damage

Explosion & implosion

Earthquake

Lightning

Storm, cyclone, tempest, tornado, hurricane, flood & inundation.

Damage due to impact by vehicles

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Missile testing operation

Subsidence, landslides and rockslides

Leakage from automatic Sprinkler installations

Bursting and/or overflowing of water tanks, apparatus and pipes

Burglary covers (only for contents):

The contents of your home are also covered against loss due to burglary

or an attempted burglary. It also covers loss of jewellery, silver articles and

precious stones kept under lock and key, up to 25% of the total content sum

insured or Rs. 1 Lac, whichever is lower.

Additional expenses of rent for alternative accommodation - If you are

forced to shift into an alternative accommodation because your home is

destroyed or damaged by any insured peril, the policy will cover you against

the additional rent.

The maximum coverage is up to Rs. 1, 00,000 for up to 6 months. The

cover is available only if you are insuring the structure of your home.

Key Benefits:

a. Digitally signed policy is available 24X7 online, customer can take

prints instantly. The hard copy of the policy is couriered the same day

(or next day if customer buys after 6 PM) and will reach him/her

within 2-3 working days.

b. Avail 15% discount on a 3 years home insurance policy and 25%

discount on 5 years policy.

c. Optional covers available - Terrorism and Additional expenses of rent

for alternative accommodation.

Sum Insured:

How to calculate the sum insured for:

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Home Structure:

The home insurance policy insures the structure of your home for its

reconstruction value (and not for market value). Reconstruction value is

defined as the cost incurred to reconstruct the home if it is damaged. On

the other hand market value is a combination of cost of land, demand &

supply scenario, etc.

Sum insured is calculated by multiplying the built up area of your home

with the construction rate per sq. feet, e.g. if your built up area of your

home is1000 sq. feet and the construction rate is Rs. 800 per sq. feet, the

sum insured for your home structure is Rs. 8,00,000.

We recommend the rate of construction for your location when you are

buying online. However, this value can be revised appropriately if

expensive material - like marble flooring, etc. - has been used in

construction. If your home has lawn / garden surrounded by a perimeter

wall, the construction rate can be revised to include the cost of

construction of this wall in home structure sum insured.

Tata AIG General Insurance Company Limited

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HOME INSURANCE

"Home sweet Home" - a destination, any individual or a family feels very close to

the heart. It is an investment of one's lifetime savings, emotional dreams and

aspirations to realize their ideal home. Home signifies a set of emotions for any

individual, be it pride, ownership, stability or be it a sense of belonging. It echoes

the owners' sentiments "It's my house´. After all, one's Home including its contents

is the single most important and expensive asset that we have created for ourselves.

We have learnt to value life and health sufficiently to understand the importance

of insuring it. But when it comes to applying the same logic to our home (around

which our lives revolve) most of us suffers a blind spot. It is only when a calamity

or catastrophe strikes that we feel helpless.

HOME SECURE BENEFITS

.Home Insurance in India provides exactly the care one needs at such times - to

safeguard against unforeseen eventualities and to preserve one's lifestyle and tattoo

at an affordable price. You can protect your priceless investment for very little

money. Assuming you have possessions worth Rs. 300,000 in your house, you can

insure those possessions for as little as Rs. 3 a day - for Fire, Natural Hazards

(Flood, Earthquake etc.) and Burglary & Theft.

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The Oriental Insurance Co. Ltd.

Householders Insurance Policy

Brief Description:

The House holder's Insurance Policy is a comprehensive shelter that protects your

house and the various contents in it against a variety of risks. It is a single policy

that takes care of a number of contingencies. The policy is divided into 10 sections.

Sec 1(B) and a minimum of any 2 other sections are compulsory.

Section 1:

Fire and Allied Perils.

Section 2:

Burglary.

Section 3:

All risks.

Section 4:

Plate Glass.

Section 5:

Breakdown of domestic appliances.

Section 6:

T.V. Set.

Section 7:

Pedal Cycles.

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Section 8:

Baggage Insurance.

Section 9:

Personal Accident.

Section 10:

Public Liability

Covered Risks:

Buildings of class 'A' construction, Plate Glass, Breakdown of domestic

appliances, T.V. Set, Pedal Cycles, Baggage Insurance, Personal Accident, Public

Liability.

BAJAJ ALLIANZ

Householders

Your home is our most valued possession, a haven of safety. But is it really as safe

as we would like to believe? We at Bajaj Allianz realize your need to make

your home as secure in reality as it is in your mind. This is why we bring to you

the House- Holders' Insurance policy designed to cover various risks and

contingencies faced by householders under a single policy. It provides protection

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for property and interests of the insured and his family members who permanently

reside with the insured. A home insurance(householder's insurance), protects not

just your flat but also your domestic and electronic appliances.

Unique Features

Very competitive premium rates.

First loss basis option for burglary and jewelry.

Flexible rating for personal accident of the insured

No valuation certificate required for jewelry up to Rs.2 laces.

Assembled computers can also be covered under EEI.

Benefits:

No strain on pockets of insured.

saving on cost.

Customized cover can be opted by the insured.

Save on time while proposing.

Same policy addressing varied needs.

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Advantages:

Single Proposal form.

Complete coverage at reduced premium.

Client needs being addressed.

Simple and quick documentation.

Related items got covered under respective sections .

IFFCO-TOKIO General Insurance

A Complete Protector

Our Home Siddha Insurance Policy gives complete protection to your home

against a wide range of risks and perils. It is a simple Home Insurance Policy

wherein there are various categories of Sum Insured and you may opt for the

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category most suitable to you depending upon the extent of risk perceived and total

value of your assets. The Sum Insured under Section 1 & 2 represents the First

Loss limit which should be within 50% of the actual Market Value of the property

at risk, below which underinsurance condition will be applicable. The other

Sections are covered on Full Value basis - Market Value for Section 5 and

Reinstatement Value for Section3 & 6. Sections 5 and 6 are optional. Either on

both of them can be deleted from the cover taken, in case they are not relevant to

you.

Coverage under Home Suvidha:

Fire and Allied Perils (Contents): Contents of your premises are covered against

fire, explosion, bursting/ overflowing of water tanks, riots, strike and malicious

damage, earthquake, flood, cyclone, landslide etc.

Burglary and other Perils (Contents): Contents of your premises are covered

against housebreaking, burglary, robbery or dacoit and also against impact

damages by falling trees/electric poles/lamp posts, breakage or collapse

of television or radio aerials/satellite dishes and damage by civic authorities

in the prevention of fire.

Television/Video Equipment: This Section covers loss or damage to

your television/ video equipment against fire, theft, accidental damage and

breakdown.

Personal Accident: This section covers you and your named family members

against accidental bodily injury leading to death or disablement

(either permanent total or permanent partial).

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Fire and Allied Perils (Building): This Section covers the residential

building, if owned by you against perils mentioned under the Fire and Allied

Perils (Contents) Section.

Personal Computer: This Section covers loss or damage to your personal

computer against fire, theft, accidental damage and breakdown.

Who can apply for this policy?

This Policy is suitable for you as a householder, whether you are a landlord

or a tenant, whether you reside in an independent house or in

afloat/apartment, whether the building is single storied or is a high rise, since

each of the alternatives above would imply different risk exposures which

can be covered under this policy.

Quality Buildings Insurance from Royal Sundaram  

Home Insurance

 Home shield Classic is a comprehensive package of insurance benefits designed to

cover the buildings and contents of your home against all possible kinds of perils

such as fire, earthquake, terrorism, storm, flood, cyclone, burglary and breakdown

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of appliances. Your building cover can be arranged in conjunction with

your contents cover or on its own.

Home shield Classic - Coverage

When it comes to contents of your home, Royal Sundaram-s Home shield Classic

will give you complete peace of mind by covering the contents against a range

of risks. We also cover building insurance. 

Three levels of cover to choose from to suit your lifestyle.

o You have the option of insuring your building against fire and allied perils.

o You have an option of payment through credit card with automatic renewal

facility.

o Assured Claims service: Claims will be settled within 10 days of receipt

of documents.

o We provide you 15 days to review your policy document. If you are not

completely satisfied, simply return your policy for cancellation and

RoyalSundaram will refund the entire premium paid provided no claim has

been made.

Home shield Classic - Features

Simple documentation & customer-friendly package.

Comprehensive package covering fire, earthquake, terrorism, storm,

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Option to cover building against Fire & allied perils @ Rs.78.56/- per lac.

Covers household contents, appliances, jewellery & breakdown

of appliances.

3 levels of cover to choose from: Silver, Gold & Platinum.

Assured Claims service: Claims will be settled within 10 days of receipt

of documents. You have an option of payment through credit card with

automatic renewalfacility.Option of Add-on covers for Computer, Air-

conditioner, Air Cooler. 

The New India Assurance Co. Ltd.  

Householders Policy

 Highlights:

 This is a package policy specially designed to meet the insurance requirements of

a householder by combining under a single policy, a number of our standard

policies usually taken by householders. Discount in premium is offered depending

upon the number of sections of the policy, opted for, by the proposer.

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Scope

 The policy comprises of 10 sections as given here under 

Section I -Fire & Allied Peril

Coverage for building

Covers contents of the dwelling belonging to the proposer and his/her family

members permanently residing with him/her. 

Allied Perils:

Fire, Lightening, Explosion of gas in domestic appliances.

Bursting and overflowing of water tanks, apparatus or pipes.

Damage caused by Aircraft , Riot, Strike, Malicious or Terrorist Act

Earthquake, Fire and/or Shock, subsidence and Landslide (including

Rockslide) damage

Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tomzato

or Cyclone, Impact damage

Section II –

Burglary & House Breaking including larceny and theft. Covers contents of

the dwelling against loss due to burglary, house breaking, larceny or theft.

Section III –

All Risks (Jewellery & Valuables)Covers loss or damage to your jewellery

and valuables by accident or misfortune whilst kept, worn or carried

anywhere in India subject to the value declared in the schedule.

Section IV –

Plate Glass Loss or damage to fixed plate glass in the insured premises by

accidental breakage subject to limit of sum insured.

Section V –

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Breakdown of Domestic appliancesCovers domestic appliances against

unforeseen and sudden physical damage due to mechanical or electrical

breakdown.

Section VI –

T.V. Set including VCP/VCR (ALL RISKS)Covers loss or damage to T.V.

Set including VCP/VCR by fire and allied perils, burglary, house breaking

or theft, breakage due to accidental external means, mechanical or electrical

breakdown. Any legal liability arising out of bodily injury or accidental

death of any person other than insured's family members or employee as also

damage to property not belonging to or in the custody of insured , caused by

use of the T.V. Set is also covered up to a limit of Rs.25,000/-.

Section VII –

Pedal Cycles (All Risks) Covers loss or damage to pedal cycles by :-

Fire & allied perils, Burglary, housebreaking, theft, Accidental external

means

Third party personal injury or Third party property damage for Rs.10,000/-

Section VII –

Baggage Insurance Covers loss or damage to insured's accompanied

baggage by accident or misfortune whilst the insured is traveling on tour or

holiday anywhere in India.

Section IX-

Public Accident Covers Death or bodily injury by accidental, violent,

external and visible means to the insured person named in the schedule and

subject to limits specified therein.

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Section X

 Public liability. Covers Insured's legal liability for bodily injury or loss of or

damage to property of third party limited to amount specified in the schedule and

workmen’s compensation liability to domestic servants engaged in insured's

premises. It is compulsory to opt for Section IB of the policy. A minimum of three

sections including Section IB have to be taken for issuance of this policy.

HOW TO SELECT SUM INSURED

For the insurance of household items, it would be necessary to group the items in

abroad category like furniture, clothing, linen, utensils, crockery etc. and give

value equivalent to the market value i.e. the value for which this used item could

be bought or sold in the market. Sections I A & B, II, III, IV, VI, VII & VIIIshould

be insured on market value basis as described above. It is a condition of Section V

i.e. breakdown of domestic appliances, that the sum insured should represent the

current replacement value of a similar item. For e.g. to insure 165 ltr.Godrej fridge

which is 3 years old, the sum insured should be equivalent to the cost price of a

new 165 liter. Godrej fridge. However, the claim amount payable would be the

amount required to bring the damaged item to the same condition as it was prior to

the damage subject to the adequacy of the sum insured. The sum insured under

section IX i.e. Personal Accident should not exceed 72 months’ salary from gainful

employment.      

HOME INSURANCE CLAIM

In case of any incident leading to a valid claim under the policy, following steps

should be taken:

Take necessary steps to minimize the loss/damage.

In case of fire, inform fire brigade immediately.

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In case of theft, larceny or burglary inform the police immediately alongwith

a list of items stolen and their approximate value. 

Inform insurance company by phone or fax and in writing. Extend full co-

operation to the surveyor appointed by the insurance Co. and provide necessary

documents to the substantiate the loss. A claim form issued by the company is also

to be submitted.

IN case any rights of recovery exist against any other party responsible for the loss,

your rights of recovery have to be subrogated to the insurance company on

payment of claim.

CALCULATION OF HOME INSURANCE PREMIUM OR   AMOUNT.

The factors to be kept in mind while calculating the insurance premium and

accepting the home insurance quote being offered by the home insurance company

are:

Area of the House (calculated in sq.ft.)

Location and neighborhood

Approximate rate of construction (calculated in Rs. per sq.)

Permanent construction on the land

The time period offered for the insurance premium (monthly, quarterly

or six monthly depending upon the insurance amount) Property more than

50years old is not covered in home insurance

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The insurance policy offered is standard or flexi covering .

TEN WAYS TO CUT THE COST OF YOUR 

HOMEOWNER'SINSURANCE

Here are ten ways to minimize the cost of your homeowner's insurance.

1. RAISE YOUR HOMEOWNER'S INSURANCE DEDUCTIBLE

 Your deductible is the amount of risk you agree to accept before the insurance

company starts paying on a claim. With the cost of homeowner's insurance

escalating, it no longer makes sense to let the insurance company assume all the

risk. If you have a low deductible of $50 to $100, consider raising it to at least$500

to $1,000. You could save up to 25% on your premiums. Some companies are

offering deductibles equal to 1% of the insured value of your home ($1,000

deductible on a $100,000 home). It that seems like a lot of money to pay in the

event of a claim, consider this: the trends in homeowner’s insurance are for

insurance companies to severely penalize customers who file one or more small

claims. Often the premiums are jacked way up or the policy is cancelled, and when

the customer looks elsewhere for coverage, they may find it costs them three times

what they were paying. We should change our perception that insurance of any

type is intended to cover all of our expenses when we incur a claim. Those days are

over. Think of insurance as risk sharing. How much risk are you willing to

assume?   

2.COMBINE YOUR HOMEOWNER'S INSURANCE AND AUTO INSURANCE

POLICIES

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 Consider buying your homeowner's and auto insurance policies from accompany

that offers both. Some companies offer discounts of 5 to 15% if you buy both types

of coverage from them. Check around and make sure the price is lower than buying

the two policies from two different companies before making this move.

3.ASK ABOUT OTHER HOMEOWNER'S INSURANCE DISCOUNTS

 Make sure you're receiving all the discounts for which you're eligible.

For example, discounts exist for smoke detectors, deadbolt locks, security or fire

alarm systems, fire extinguishers in the home, etc. If you're over 55 and retired,

you may qualify for an additional 10% discount.

4. DON’T BUY HOMEOWNER’S INSURANCE COVERAGE YOU DON'T

NEED

 It makes no sense to buy insurance to protect yourself against risks you are

unlikely to encounter; for example, earthquake coverage in a non-earthquake zone,

or a jewelry floater to your policy if you don't own expensive jewelry

5. KNOW WHAT YOUR HOMEOWNER'S INSURANCE POLICY COVERS

 Your home is your biggest investment. Make sure it's adequately protected from

risks you cannot afford to cover yourself and that it covers any home

improvements you've made, major purchases, and increased costs of rebuilding. 

6. MAKE YOUR HOME A BETTER INSURANCE RISK 

 Ask your insurance agent what you can do to make your home less expensive

tonsure. Making changes that reduce the risk of damage in windstorms and

other natural disasters is one example. Another is updating old wiring or heating

systems, which may reduce your risk of fires and therefore reduce your premiums.

7. KEEP YOUR INSURANCE COVERAGE’S UP TO DATE

 Once a year, before your homeowner's insurance policy is due to renew, dig out

the current policy, read through all the details, and call your insurance agent to

discuss any changes in your situation that occurred during the year.

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8. AVOID RISKS THAT INSURERS SHUN

 Insurers are shying away from some risks. For instance, owning certain types

of dogs (Rottweiler’s, Doberman Pinschers, Pit Bulls), can limit or void

your policy. Owning a swimming pool or a trampoline can increase your cost

of coverage. Read all the fine print in your policy under the "Conditions and

overages" sections so you know all the things that are excluded from coverage.

You may opt to buy additional coverage to protect yourself from certain

exposures.   

9. IMPROVE YOUR CREDIT SCORE

 Insurance companies are increasingly using credit information to price insurance

policies. Don't have too many open credit accounts, don't charge close to the limits

on your credit cards, and pay all your bills on time to keep your credit score

healthy.

10. SHOP AROUND FOR HOMEOWNER'S INSURANCE

 Shop around for homeowner's insurance rates but keep in mind that you may be

receiving a longevity discount if you've been with your current insurer for several

years. Typical discounts are 5% if you've been with the company for three to five

years, and 10% for six years or more. Get quotes from three agents, and take any

longevity discounts with your current insurer into consideration when you compare

prices.

       QUESTIONAIRE FOR SURVEY

FOR MANAGER  

What is the procedure for application of Home Insurance?

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What are the types of Home Insurance?

What is the eligibility criterion?

What are the documents required for taking Home Insurance?

What are the terms and conditions for the following:(I)Premium   (II) Claim

(III) Defaulters

What are the damages covered under the Home Insurance policy?

FOR CUSTOMERS

Whether you know about Home insurance?

Have you taken this policy from any agent or have you visited company

personally?

Does Company provide knowledge on entire product range in its portfolio?

What is your opinion regarding private companies?  Whether they provide

same safety and security to public as government companies?

Are you satisfied with the services provided by them?

What factors do you considered while selecting ICICI Lombard as An

insurance Company?

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      ANALYSIS OF SURVEY OF ICICI LOMBARD 

  PROCEDURE FOR APPLICATION OF HOME INSURANCE:

  After doing survey of ICICI Lombard I found that procedure for application of

Home Insurance is filling a proposal form or through internet. 

TYPES OF HOME INSURANCE:

ICICI Lombard provides only single home insurance product (Home Safe +

Product) 

ELIGIBILITYCRITERIA:  ELIGIBILITYCRITERIAICICI

LOMBARDMINIMUM 20 YEARSMAXIMUM 50 YEARSPOLICY TER

M 36 MONTHS  

    ELIGIBILITYCRITERIA ICICI  LOMBARD

MINIUM 20 years

MAXIMUM 50 years

POLICY TERM 36 mths

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DAMAGES COVERED:

ICICI Lombard provide following coverage’s:

 Fire and Special Perils, Audio & Audio Visual Appliances Burglary &

Theft, Public Liability Baggage Loss, Purchase Protection Breakdown of Domestic

Appliances Personal Accident, Rent for alternative accommodation  

TERMS AND CONDITIONS :

(A) Premium:  In case of premium customers have to pay annually only. Up to

1Lakh it is 141 Rs. There premium is based on their value of sum assured.

(B) Claim:  In case of claim customers have to submit the documents Such as it

should be registered under municipality Corporation, FIR, etc.

C) Defaulter:   In case of default by customer the policies of them are cancelled. 

DOCUMENTS: Customers have to fill only proposal form of the company

which is provided by them and this policy is based on the utmost good faith

principle of insurance.  

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CUSTOMER  

CUSTOMERS HAVING

HOMEINSURANCE POLICY (3) CUSTOMERS NOT HAVINGHOME

INSURANCE POLICY (7)

After detail analysis of 10 customers I found that all the customers are aware about

insurance services. As we know that ICICI is the no 2 private sector organization

in INDIA. So according to those 10 customers ICICI’S brand name is the most

important factor for taking insurance policy. Out of 10 customers only 3 customers

have taken home insurance policy from ICICI Lombard whereas remaining 7

customers are not aware about home insurance as a concept. Those 3 customers

have taken the policy from agent and for further procedure they visited personally

to the company. Agents provide entire knowledge of product such as some assured,

features of policy, premium payable, product coverage, eligibility etc. When I

spoke with 10 customers I found that they give same preference to the private

organization as well as public organization. The services provided by ICICIare as

follows:24 x 7 service, Toll free no’s, online application and Banc assurance. All

this factors satisfy the customers need.

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NO. OF CUSTOMER VISITED (10)

Types of home insurance

There are two types of home insurance: buildings insurance and contents

insurance. These policies protect you against very different things, and many

homeowners will need to take out both types of cover.

Buildings insurance

This insures the fabric of your property – your walls, roof, and foundations, for

example – against damage caused by events such as flooding, storms, fire or

subsidence. Basically, anything you wouldn’t (or couldn’t) take with you if you

moved home will be covered by a buildings policy. This would include windows,

baths and showers, built-in wardrobes, as well as things outside your home such as

driveways, garden sheds and gates. Your policy should offer sufficient cover to

completely rebuild your home if necessary – for example if it were destroyed by a

fire or earthquake. When you apply for a policy, you’ll be asked for your home’s

“rebuild value”: but don’t assume this is the same as its open-market value if you

were to sell the property. The rebuild value depends on the cost of materials and

labour, whereas the market value also takes into account intangible factors such as

proximity to schools or transport links, and what your neighborhood is like. When

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you apply for buildings insurance with a price-comparison service, you will be able

to use an online rebuilding cost calculator to help you get the right level of

insurance. Some buildings policies will give you emergency cover, with a 24-hour

hotline to call in case of burst pipes or a broken-down boiler, but you may have to

pay extra for this service.

Who needs it?

If you own a house, you need buildings insurance. If you have a mortgage on the

house, your lender will probably make it a requirement of the loan. Given that a

property is the largest investment most of us will make, the consequences of being

uninsured – or underinsured – would be potentially catastrophic if the house were

destroyed or severely damaged in a natural disaster.

Who doesn’t need it?

If you’re renting your home, it is your landlord’s responsibility to have buildings

insurance, not yours. You could check your landlord is covered if you want to have

the peace of mind that an insurer will pay out to quickly deal with any structural

problems. And if you live in a block of flats, it is more likely that there will be a

policy to cover all the flats rather than each individual apartment. This could be

organized by the freeholder or property management company, with residents

paying their share of the premium through an annual service charge.

Flats are rarely covered individually because this leaves any communal areas such

as halls, stairways and gardens unprotected.

 Contents insurance

This covers your possessions at home against events such as burglary, flooding or

fire. You can even get protection against accidental damage, although this is likely

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to result in higher premiums. As a rule of thumb, if an item is something you could

take with you when you moved, it should be covered under a contents policy. One

of the most important aspects of buying a contents policy is getting the right level

of cover. Insurers will ask for the total value of possessions covered under the

policy: this means you should go from room to room and work out the value of

everything you own and would want replaced if they were destroyed in a fire or

flood, for example. If you are found to be underinsured, your insurer can reduce

your payout proportionately. Bear in mind also that most policies will have an

upper value limit for expensive items such as jewellery or electrical equipment.

This could be £1,000, which means applicants need to declare any items worth

more than this and pay extra to make sure they are insured. If you buy any

expensive items, you should tell your insurer as soon as possible to make sure they

are covered. The same applies if the total value of what you own increases

substantially, as it might after you get married and receive gifts.

Legal expenses cover

This optional extra on a contents policy means you can claim the costs of taking

legal action if you were injured in an accident or unfairly dismissed from work, for

example: the action doesn’t have to be related to your home, but it could cover you

if your dog attacks a postman, say. It would also give you protection in disputes

with tradesmen. There will be an upper limit on what you can claim, say £50,000

or £100,000 per case, and you will usually – but not always – have to pay extra

for legal expenses cover.

Who needs contents insurance?

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Most people should consider taking out a contents policy if they own anything of

value. Even if you are in rented accommodation, your landlord’s insurance will

only cover the building and his own property, such as washing machines or fridges.

Is it essential to have home insurance?

If you’re a homeowner, most mortgage lenders insist you have buildings cover in

place to protect their investment. You don’t usually need buildings cover if you’re

renting, but you may want contents insurance to help cover the cost of replacing

your things if you suffer a loss. You can find out more about how your home

insurance is calculated in our guide.

Why would I need to take out a joint home insurance policy?

Adding a joint policyholder allows the other person to make a claim, so it’s not

only you who can deal with communications with your insurer. Under some

circumstances it can also lower your premium.

What is accidental damage cover and do I need it?

Most insurers define accidental damage as an unintentional one-off incident that

harms your property or its contents. Most standard policies cover key items like

home entertainment, but there may be varying exclusions depending on your

insurer. Your need depends on your circumstances – many accidental damage

claims come from people with young children. It’s also important to know what’s

covered under your standard policy. Checking the small print is the best way to

make sure you’ve got adequate cover.

Do I have to get my buildings insurance through my mortgage provider?

No - unless it’s a specific requirement of your mortgage contract. By being the

only insurer offering you buildings cover when you’re arranging your mortgage,

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there’s less need for them to competitively price your insurance policy. You can

often save money by shopping around with a price comparison site to get a range

of quotes from a number of insurers.

What should I include in my contents cover?

As a rule of thumb, anything you’d take with you if you moved house should be

included on your contents policy – including items like curtains and carpets. It’s

worth taking the time to go around your house from room to room and putting a

reasonable value on everything. It’s easy to underestimate the value of your

contents, but it’s important to make sure you’re not underinsured. To help you

calculate the cost of your contents.

Should I increase my excess to make my policy cheaper?

The golden rule of voluntary excess is to make sure you know what you can afford

to pay if you have to make a claim. The more you agree to pay towards a claim, the

less cost there would be for your insurer, so they may reduce your premium

accordingly. But beware - setting an unreasonably high voluntary excess may save

you a few pounds on your premium in the short term, but if ever you need to make

a claim, you could find yourself with a large bill to settle before your insurer will

pay out.

If I don't let my insurer know about changes could this affect my cover?

Potentially, yes. For example, if you’ve told your buildings insurer that your roof is

in good repair, they will base your premium on the known risk of storm damage

happening to the average roof. But if, in fact, your guttering is already falling off,

or your tiles are coming loose, then there’s a greater than average risk of damage

happening during a storm – something your insurer hasn’t covered against on your

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original premium. As the full risks weren’t disclosed, you’re effectively insuring

higher risks at a cheaper price, which could invalidate your policy and leave you

without a pay out in the event of a claim. For more information, read our guide

Can I cover myself against damage by pets?

Most home insurance policies don’t cover damage caused by pets as standard. To

cover this, you’ll often need to buy standalone pet insurance. For more information

on accidental damage, 

Does home insurance apply to me if I rent?

As the owner, your landlord will be responsible for the maintenance of the

building, so it’s down to them to ensure their property is protected with buildings

insurance. But you’re responsible for any contents inside that you own. If anything

were to happen to your possessions, you would liable yourself for the cost of

replacing them.

What if my situation changes, such as building an extension or buying expensive

furniture?

You need to inform your insurer of any changes to your building and/or your

contents which may impact on the cover you have. The key point to remember is

that your contract with your insurer is based on mutual disclosure of information –

they charge you a “fair” premium, based on the risks you’ve made them aware of.

If these risks change, so too does the value of a “fair” premium. If in doubt, ask

your insurer. The time taken for a quick phone call could save any problems that

arise in the event of a claim.

What if I need a quote for an unoccupied property?

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If the property you’re quoting for is empty, then on the first page of the quotation

process (‘About You’) you’ll need to enter your main home address. On the second

page (‘The Property’) you’ll then need to confirm that the property you’re insuring

is not your home address. You can then select that the property is left unattended

for more than 60 days at a time.

Be aware though that an unoccupied home often falls outside the underwriting

criteria of our home insurance panel, so you’re likely to receive fewer quotes than

usual.

How do I get a quote for a property I let?

If you’d like a quote for a property you own but rent out to tenants, try our

landlord's insurance page.

How do I get a quote for a property I rent?

As a tenant, you can get a contents insurance quote for the property, but you won’t

be able to purchase buildings insurance; this is the responsibility of your landlord.

When you start your home insurance quote, you’ll have the option to select

whether you want a quote for buildings, contents, or a combined policy. Here you

can select that you’re quoting only for contents insurance.

How home insurance is calculated

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You won’t find out how much (or how little) you

could be able to pay for home insurance until you use a price-comparison service

to check the best quotes. But if you know the factors that affect premiums on

contents and buildings policies, you should be able to get an idea of whether your

cost of cover is likely to be higher or lower than average.

How much cover you need

This probably has the biggest impact on your premiums, as you would expect.

Contents insurance: It is important to make sure you are covered for the full value

of the possessions in your home.

Bear in mind that if there is a flood or fire, you could be asking your insurer to

replace the lot — and if it finds out you don’t have enough cover, it could reduce

your payouts.

You’ll also pay more if you have any valuable items to insure: most policies will

require you to cover possessions worth more than a specific amount (for example

£1,000 or £1,500) separately.

Buildings insurance: The amount of cover you need on a buildings policy depends

on how much it would cost to rebuild your home in the event of it being destroyed

by fire or flood, for example.

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This is not the same as your property’s market value: the rebuild cost is basically

materials and labour, whereas the potential selling price is based on other

intangibles such as location and proximity to good schools.

The excess on your policy

The amount you’re willing to pay on each claim will raise or lower premiums. If

you opt for a voluntary excess of £500, for example, your cost of cover will be

lower than if you had a £50 excess. With the higher excess, if you made a claim for

£1,000, your insurer would only pay out £500. But this means that the potential

costs to your provider are lower, hence cheaper premiums. With some parts of your

policy — for example subsidence cover under a buildings policy — you may not

be able to cut your excess (excesses for subsidence are usually much higher to

reflect the greater costs typically involved in such claims).

Here are some of the most popular extras.

Accidental damage cover: This addition to your contents policy will pay out if you

spill wine on a new carpet, or your dog knocks over a precious vase.

Home emergency cover: As part of your buildings or contents cover, this gives you

a 24-hour helpline to call if you have a problem such as a burst pipe or broken-

down boiler.

Legal expenses cover: This will help fund legal action in a variety of circumstances

— for example against dodgy workmen, or if one of your roof tiles comes off and

damages your neighbor’s property.

Your home’s security If you do face higher premiums do to an increased risk of

burglary, you can cut costs by introducing decent security measures: these

could include locks on outside doors and patio windows which are made by to a

standard recognized by insurers, or burglar alarms. Who lives in your property

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If you rent out the home you’re buying insurance for, you can expect insurance

to be more expensive: providers often believe that tenants are less likely to look

after a property well than its owners.

Your claims history Customers who make claims normally see their premiums

increase as a result: insurers’ statistics show that if you’ve made a claim in the

past, you’re more likely to claim in future. If you’re considering making a

claim, don’t just think about the excess you’ll have to pay.

Home insurance accidental damage explained Accidents will happen – but what’s

covered under accidental damage on your home insurance?

Most of us take good care of our homes. But as Elvis Costello sang in his classic

ode to the importance of home insurance: "accidents will happen". And what better

reason to make sure that you’re adequately covered? After all, who would want to

shell out for a new carpet after knocking over a glass of red wine? But what

exactly constitutes accidental damage in buildings and contentsinsurance policies?

Our basic guide covers the main inclusions and exceptions.

What is accidental damage?

The definition of accidental damage is pretty uniform across home insurance

policies: damage that occurs suddenly as a result of an unexpected and non-

deliberate external action. In layman’s terms, that usually means an unintentional

one-off incident that harms your property or its contents. So, general wear and tear

or damage that occurs gradually will be excluded. You also won’t be covered for

mechanical failure. A computer that just gives up the ghost can’t be claimed for,

but it would be covered if it smashed after you accidentally dropped it onto the

floor.

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Claims caused by children

Young children are the cause of many home insurance claims; and even if you

don’t have offspring yourself, a lot of accidental damage is created by visiting kids.

Incidents involving home entertainment equipment (for example if a toddler

manages to topple your TV) are often covered under standard contents insurance

policies – though it’s always a good idea to examine the small print of your

particular policy to make sure. Extending the accidental damage cover will protect

most other items in your home, so you may be able to claim for fruit juice split

over your curtains, or a felt-tip masterpiece drawn on your sofa. Common home

insurance policy exclusions are portable electrical equipment, and clothing: so

keep sticky fingers away from your laptop and favorite designer jeans and, again,

check your policy wording.

Animal-related accidents

Many home insurance providers will not cover for damage caused by chewing,

tearing, scratching or fouling by animals. This provision is the same pretty much

across the board and few contents insurance policies will cover for pets. Sorry

animal lovers: Rover needs to be fully house-trained before he’s allowed near any

expensive furniture. Several home insurance providers will not cover for damage

caused by insects, vermin or infestation. Squirrels are specifically excluded from

the vermin classification of a few home insurance policies; so if your doorframe

has been gnawed away, you need to cross your fingers that the culprits have bushy

tails.

DIY damage

Checking your home insurance policy conditions before undertaking any work is

always a good idea. You may need protection under both buildings and contents

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policies, depending on the particular job. If you’re unsure of the difference

between buildings and contents insurance, take a look at our guides

on buildings and contents insurance explained. Be aware that some plumbing and

electrical work will not be covered if it’s completed by an amateur. As a general

rule, if you’re not really sure what you’re doing, it’s best to avoid an accidental

damage claim altogether by getting a professional in. For more DIY advice, see

our guide on how to stay safe and protected whilst doing up your home.Claims for

common accidents, such as bursting a water pipe with an ill-placed nail will

usually be accepted. Be careful, though, when you’re clearing up the mess that

you’ve created; damage caused by cleaning is excluded from several home

insurance policies. As the details of accidental damage cover are not always

consistent between home insurance providers, it’s wise to familiarize yourself with

the details before committing to a home insurance policy to ensure that you get the

cover you need. At Confused.com, we’re devoted to finding you the most

suitable buildings and contents insurance so that accidents don’t lead to disaster.

How to calculate your home contents value

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When you take out home contents insurance, you

will be asked how much cover you want. The figure you choose should represent

the total value of the possessions in your home. This excludes the fabric of your

property, such as walls, windows and your roof, which are covered under a

buildings policy. AS a rule of thumb, anything you would take with you if you

moved house should be covered by the contents policy, including items such as

curtains and carpets. Remember, contents cover is not just to protect against

burglary. Imagine your home was destroyed by fire: you would need to replace

practically everything you owned – and that is why it is vital to get an accurate

level of cover. Take a look at our guide to calculating the cost of your possessions

around the home or use our handy contents calculator to work out the value of your

possessions.

Living room

Work out the value of your furniture, such as sofas, armchairs, bookcases (and

books) and TV stands, plus any soft furnishings as well as carpet and curtains or

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blinds. You’ll need to add electronic items such as a TV, DVD player, computer

games consoles and hi-fi – plus, of course any computer games, CDs or DVDs.

Don’t forget any pictures and ornaments, as well as lamps.

Dining room

Furniture here includes dining table and chairs, and perhaps a sideboard or display

cabinet. Add the cost of crockery and cutlery, and again include carpet and

curtains/blinds.

Kitchen

The big-ticket items here will include your oven / cooker, as well as fridge,

washing machine and dishwasher. Add any non-fitted units as well as blinds, and

the cost of your kitchenware – pots and pans and so on. And don’t forget other

appliances such as kettles, toasters and microwaves. You should also cover the

value of any frozen food.

Bedrooms

This is where valuables such as jewellery or other heirlooms are likely to be kept.

Many policies have an upper limit for covering individual items – so if something

is worth more than £1,500, for example, it may need to be covered separately at

additional cost. Include any IT equipment, such as computers, printers and so on,

as well as any other electronic items like games consoles, TVs or iPods. Add the

value of bedroom furniture such as beds, wardrobes, chests of drawers, as well as

soft furnishings and bed linen, and, of course, clothes.

Bathroom

Calculate the cost of bathroom cabinets, and toiletries if they are particularly

valuable.

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Outside the home

Garden furniture can be expensive, and that needs to be covered too. Check your

policy insures you for items outside the home. Also take into account gardening

equipment such as lawn mowers or hedge trimmers, plus any bikes you keep

outside or in a garage.

If you make a claim on a home insurance policy –

whether it’s your buildings or contents cover – your insurer makes a deduction

from the total, and does not pay out the full amount. This is know as the policy

excess.

So for example if you have an excess of £100, but make a claim for stolen goods

worth £400, your insurer will give you £300.

But there are different types of excess.

On both buildings and contents policies, there is typically a compulsory excess and

a voluntary excess. The compulsory excess, as the phrase suggests, is applied to

every claim. It may typically be around £50, but check the policy before you sign

up. The voluntary excess on your policy is up to you: it can be anything between

zero (so you only pay the compulsory excess) and £400 per claim. But insurers will

generally reduce the size of your premiums if you opt for a higher voluntary

excess, as this will cut the amount of money they are liable to pay out. On certain

types of claim, different excesses may apply: for example if you have accidental

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damage cover as part of your contents policy, the compulsory excess may be

higher; so might it be for damage caused by water. On buildings cover, the excess

for subsidence claims is likely to be substantially higher – around £1,000 is typical

– given the fact such claims are normally for very large sums. Again, you should

check the policy before signing up to make sure you’re happy with the excesses

that apply

Landlord’s insurance guide

If you’re considering renting out a property you

own, think carefully about what insurance you will need. There is plenty that can

go wrong when you give tenants the run of your house, you need to be protected

against it.

Accidents can happen

They might spill red wine on the carpet. Perhaps they’ll leave the bathroom taps

running, and flood the property (if it’s a flat, they might flood the neighbours’ as

well). Or they could forget to close a window or lock the doors, so that burglars

trash the place – or even start a fire that burns the place down. When you become a

landlord, standard buildings and contents insurance is no longer enough. If you fail

to tell your insurer that you have rented out your property, they will flatly refuse to

pay any claim you subsequently make. You therefore need specialist insurance.

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Whether you are renting out your home, or building a portfolio of buy-to-let

properties, you will have a lot of money tied up in property. So don’t just find the

cheapest deal you can, check the policy gives you all the protection you need.

Landlord insurance comes in several parts, so you need to work out whether you

need all of them.

Landlord buildings insurance.

This is a must-have, because it protects the bricks and mortar of your property. If

you suffer a flood or fire, buildings insurance will cover all the rebuilding costs,

giving you peace of mind. Many buildings policies offer unlimited cover, so you

don’t need to estimate the rebuilding costs of your property. Landlord contents

insurance.  Another vital piece of cover, particularly if you rent the flat furnished,

because it protects your beds, carpets, sofas, TVs and other possessions from theft

or damage. Look for a policy that will replace your belongings on a “new for old”

basis. You don’t have to insure your tenants’ possessions - that is their

responsibility. Landlord liability insurance.  Personal injury claims have soared in

recent years, partly thanks to ambulance-chasing lawyers, who tout for business

from people who have suffered an injury or accident, to persuade them to make a

claim for legal compensation on a “no-win, no fee” basis. Some claims have

topped £100,000, and although most average around £5,000, you should still

consider protecting yourself against litigious tenants. Landlord liability insurance

typically offers cover up to £2 million as standard. Loss of rent insurance.  If your

property is accidental damaged or destroyed, and you can’t rent it out, this

insurance will replace the lost rent. This is particularly important if you have taken

out a large mortgage on the property, and are relying on the rent to meet the

monthly repayments, in which case it could spare you the agony of losing the

property altogether.  Legal expenses insurance. This covers your legal costs

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following disputes with tenants, including evicting squatters, repossessing your

property and any other disputes with tenants, including defending you against any

criminal action. You can also extend your policy to cover the legal costs of

recovering any outstanding rent owed by your tenant.  Landlord home emergency

cover. This will cover the cost of arranging emergency repairs following, say, a gas

leak, burst pipe, break-in or pest infestation. Policies typically cover call-out

charges, labour and materials, maybe up to a maximum sum of up to £500 per

claim. It ensures a fully qualified tradesmen will be on hand to sort out household

emergencies, 24 hours a day, 365 days a year.  That is clearly a lot of insurance.

Don’t panic, some of it isn’t that expensive, for example, legal expenses cover will

typically cost you around £50 a year. And in many cases, the same insurer will

offer several types of cover, or bundle them together into the same policy. But

don’t just go for the cheapest deals you can find. Renting out your property to

strangers can be a risky business, and you want to be properly covered if

something goes wrong.

TENANTS INSURANCE GUIDE

If you live in a rented property, you don’t have

to worry about insuring the bricks and mortar. That’s the job of the landlord. But

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that doesn’t mean you don’t need any insurance at all. Your landlord won’t insure

your personal belongings, so you have to do it yourself. You need to take out a

type of contents cover called tenants insurance, which protects your stuff against

nastiest such as flood, fire, theft and accidental damage. Even if the flat is

furnished, you probably still have plenty of stuff that needs protecting, such as

your TV, stereo, laptop, iPod, mobile, music downloads, clothes and, if you have

one, the contents of your handbag (and the bag itself, of course). A good policy

should also protect any items belonging to guests or visitors while in your home.

Cover in a flat share

If you share a flat with friends, you need to decide whether to protect just your own

belongings, or take out a joint policy that covers your flat mates as well. A joint

policy may be slightly cheaper, but it can be a bit of a pain. You have the trouble

of changing names on the policy deeds if one of your flat mates leaves, plus you

have to trust your chums to pay their share of the policy premium. In many cases,

it is simpler to go it alone. First, decide how much cover you need. Carefully tot up

the value of replacing your belongings, you might be surprised to discover how

much you’re worth! You can buy cover for contents worth anything anything

between £3,000 and more than £100,000. The more cover you need, the higher the

premium, but don’t be tempted to under-insure or you could pay a heavy price

when you claim. If your insurer discovers you bought, say, just 50 per cent of the

insurance you need, it will only pay 50 per cent of any claim, regardless of its size.

Look for a policy offering “new for old” replacement, so you get the full cost of

replacing damaged or stolen goods. Don’t buy cover you don’t need, you’re just

wasting money - but make sure you do cover everything of value. If you have a

large collection of music downloads you could be seriously out of pocket if your

computer crashes, so you must cover that.

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Keep a lid on costs

You can cut your premiums by taking a large excess on your policy, so long as you

can afford to pay it if you do need to claim. Beware making frivolous claims on

your policy, some tenants policies often no-claims discounts of 30 per cent or

more. And make sure your landlord has fitted the correct door and window locks,

or your insurer may refuse to pay out following a burglary.

You should also consider paying a little extra for accidental damage cover, which

gives you valuable protection against clumsy guests and excitable children. Are

you always misleading your keys? If that happens to you while renting, your

landlord is likely to bill you for the cost of repairing or replacing any locks. Many

tenants insurance policies will cover the cost.

Extra protection

You should also consider insuring your possessions for when they are outside your

rented flat, when you’re out and about or on holiday. You do this by extending

your policy to cover “all risks”. You could also think about looking for an

extended household appliance warranty   if you wanted increased security.

Look for a plan that includes tenants’ liability cover, which will protect you for any

accidental damage you or your guests cause in the property, such as breaking a

mirror, spilling wine on the carpet, or damaging fixtures and fittings. Most

landlords will expect you to pay for this yourself, but a good insurance policy

should cover the cost. Finally, remember to shop around for the best cover. That

doesn’t always mean the cheapest, compare the small print carefully to make sure

you are buying the cover you really need.

EMI Calculator for Home Loan

Home Loan

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Home Loan Amount ₹

|

0|

25L|

50L|

75L|

100L

Interest Rate %

|

5|

7.5|

10|

12.5|

15|

17.5|

20

Loan Tenure

Years

Months

|

0|

5|

10|

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25,00,000

10.5

20

15|

20|

25|

30

Monthly Payment (EMI)

₹24,959

Total Interest Payable

₹34,90,279

TotalPayment

(Principal + Interest)

₹59,90,279

Break-up of Total Payment41.73%58.27%Principal Loan Amount Total

Interest

Compare loan rates from top banks side-by-side

Compare Rates & Apply for Home Loan

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CONCLUSION

The insurance industry is in the silent revolution and the best part is that all of us

are part of this revolution process, contributing to it and influencing shape

of things to emerge. It will be quite interesting to see an excess of distribution

system taking shape and competing with each other’s. There is one truth in

marketing that is ³different consumers Approach buying differently. Studies have

time and again shown that insurance is bought because of convenience, product

features, product placement, and safety of funds, advice, and not the price. From

the survey of customers I came to conclusion that many of the customers are not

aware about the concept home insurance. As this policy is generally taken by the

businessmen’s, self-professionals.

We can expect from this organization that it will lead the innovative process with

quality of services that will help the Indian consumer to take advantage from

insurance business. 

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 BIBLOGRAPHY

 INFORMATION COLLECTED THROUGH SURVEY (ICICI BANK)

 WWW.GOOGLE.COM

 WWW.ICICI

LOMBARD .COM 

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