It takes a whole lifetime of savings to build a house. And one cannot predict a natural calamity like earthquake. In recent times we have seen what disaster an earthquake or any other natural calamity such as floods, landslides and torrential rains can wreck. Hence home insurance is very important.

Home insurance policy also protects against other hazards like gas cylinder explosion, fire due to electric short circuit as well as man-made disaster like burglary. Home insurance policy can be divided into two parts:

• Building structure
• Contents inside the home

Insurance Covers for a Building Structure are:

• The Fire and Special disaster cover
  This is a comprehensive packaged cover that covers damages to the structure of home due to
  • Fire
  • Storm, tempest, flood & inundation
  • Riot, strike & malicious damage
  • Lightning
  • Explosion & implosion
  • Aircraft damage
  • Damage due to impact by vehicles
  • Subsidence, landslides and rockslides
  • Bursting and/or overflowing of water tanks, apparatus and pipes
  • Missile testing operation
  • Leakage from automatic Sprinkler installations
  • Bush fire
• Earthquake Cover
  Covers damages to the structure of your house due to earthquake.
• Terrorism Cover
  Covers damages to the structure of your house due to acts of terrorism.

A home insurance does not cover the market value of the home. The price of the home includes the cost of the land and the cost of constructing the building structure on this land and the land cannot be insured. The insurance cover is only for the cost of constructing the building. The sum insured is calculated by multiplying your home area by the construction rate per sq. feet.


Insurance Cover for Contents Inside the Home
This cover is only for damages or loss of the contents inside the home -electronic and electrical goods, furniture and fixtures, clothing, jewelry and any other contents inside the home. The covers that can be taken for the contents are as follows:

• The Fire and Specials Perils Cover
• Earthquake Cover
• Burglary
• Loss / damage to contents due to burglary or an attempted burglary
• Loss of jewelry, gold ornaments, silver articles and precious stones kept under lock & key

All the contents are covered on the market value of the items. This means that if there is a loss, the claim would be paid on the value of purchasing a similar new item, minus depreciation.