“Understanding the Ins and Outs of Home Insurance in India”
Home insurance penetration in India is on the rise, with recent natural disasters driving awareness of the importance of having a comprehensive policy in place. However, it is crucial for homeowners to be well-informed about what their policy covers and what it doesn’t.
Many standard home insurance policies do not cover damages due to war, invasion, foreign enemy hostilities, or loss of earnings. Additionally, certain exclusions like loss or damage to bullion, precious stones, and vehicles are typically not covered. However, most policies now come with add-ons or insurance covers that provide extended protection for your home.
One example of this is the Bharat Griha Raksha, a standardized policy introduced in April 2021 that offers a wide coverage, including protection against earthquakes and acts of terrorism as per the terrorism clause. Similarly, individuals can opt for additional living expense cover, tenant’s liability insurance, accidental damage cover, and other add-ons to enhance their basic coverage.
It’s important to note that while the coverage provided by these add-ons may vary from insurer to insurer, they offer comprehensive protection and help safeguard homeowners from potential financial burdens.
Understanding the exclusions and add-ons available under home insurance policies is essential for individuals looking to purchase or update their coverage.
For example, individuals must be aware that losses due to war, invasion, and damage caused by pressure waves from aircraft are not typically covered. Moreover, additional living expenses, incidental costs, and involuntary betterment are available as add-ons to enhance coverage.
To ensure that their belongings are insured for the amount necessary to replace them, homeowners are encouraged to declare the sum insured for general contents and explore options to increase coverage. This, along with understanding their policy’s exclusions and add-ons, will allow homeowners to manage their risks effectively and ensure adequate protection for their homes and possessions.
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