Home insurance covers its the insured with any calamity or accident pertaining to the house. It thus insures the house against burglaries, theft, fire, earthquake, explosion etc.
The amount of home insurance cover needed is calculated keeping a number of factors in mind. Area of house (in sq.ft.), location of property, approximate rate of construction (in Rs./sq.ft.) are generally considered by insurance companies. A property more than 50 years old is not insured. Another point considered while insuring a home is that companies only consider 'Pukka/Permanent' construction. Keeping the above factors in mind, an individual has to pay the premium every month/quarter/six months according to the sum insured.
Insurance companies come out with different home insurance policies to suit the unique needs of its customers. While some policies have a standard/fixed cover, others are flexible package, including a basket of coverage. The premium for such covers is higher than the standard cover. This is because the risk of the company insuring is more
Home Insurance Claim Procedure
In the event of some burglary, theft, fire, the claims of individuals are settled fast by companies. Leading insurance companies are launching 24 hours helplines and call centers to fasten the claim process and provide better service to customers. The call center registers the claim request after the individual furnishes all personal details and details of the policy taken. A company appointed surveyor inspects the site and submits the loss report. In case a surveyor is not appointed, an individual must submit documents to be insured to the company. The claim is processed by company within 7-15 days. On approval of the claim, a letter is sent to the insured giving the approved amount of settlement. Payment cheque is released.
Documents Required for Home Insurance Claim:
- Duly completed and signed claim form
- Copy of FIR
- Final Report from police
- Copy of all invoices, price lists
- Letter of Indemnity from Insured