1. Why do I need a Householder Insurance Policy?
Home is an environment offering affection and security. To ensure complete security & protection against accidental damages Householder policy provides cover both to building and its contents.
2. What does the Householder Insurance Policy cover?
Householder Insurance Policy offers comprehensive protection for your home (residential building) and its contents against a variety of risks. This is a composite policy spilt into ten sections covering number of contingencies. Minimum of three sections are necessarily to be taken, out of which Section IB relating to coverage of contents against Fire and allied perils is compulsory. Section-wise coverage is as follows
|Sections||Type of Insurance||What is covered||What is not covered|
|I||Fire||Loss to the residential building, household goods & personal effects - as per Fire Policy + Earthquake Risk.||Loss to money, securities, livestock, motor vehicle, documents|
|II||House- Breaking||House breaking including Larceny and theft for temporary removal of contents. Up to 120 days- cover available for 10% of sum insured only||Loss to money, securities, livestock, motor vehicle, documents|
|III||All Risks||Loss or damage to Jewellery, Valuables etc. due to accident or misfortune||Theft from car (saloon) except when stolen while properly locked. Loss caused by moth, mildew etc.|
|IV||Plate Glass||Accidental breakage of fixed plate glass||Scratches on the glass|
|V||Domestic Appliances Including TV Set||Damage to electrical appliances (refrigerator, mixer etc.) due to electrical or mechanical breakdown.Sum insured should be its new replacement value||Loss due to faults existing before insurance or for which the supplier or manufacturer is responsible|
|VI||Personal Computer & Lap Top||All risks subject to specified exclusions.||Loss due to wear & tear faults defects existing at commencement of the policy, for which the manufacturer is responsible|
|VII||Pedal Cycle||Loss by Fire & allied perils Housebreaking / Theft, Accidental external means||Loss by mechanical breakdown|
|VIII||Baggage||Loss to accompanied baggage by accident or misfortune||Loss of cash, jewellery loss within the municipal limits|
|IX||Personal Accident||Death or bodily injury by accidental, external violent, visible means resulting from accident & weekly compensation during hospitalization in Hospital only.||Suicide or attempted suicide, self -injury, death or injury resulting from the Insured committing any breach of law with criminal intent.|
|X A||Public Liability||Legal liability of the Insured to the public for bodily injury or accidental death||Liability to family members & employees|
|XB||WC||As per WC Act||Liability to public & family members|
3. Salient Features of the Home Insurance Policy
1. The Householder Insurance Policy may be taken for any dwelling of Pucca construction.
2. 15% (fifteen percent) of the sum insured is waived for the purpose of under insurance for section I
3. All items having value of more than 5% (five percent) of the total sum insured under Section I B should be separately specified along with their values.
4. Under the All Risks Section (Section III) any article valued at more than 10% (ten percent) of the sum insured has to be separately specified along with its value.
5. Jewellery and valuables kept in the bank locker may also be covered on first loss basis.
6. For taking coverage under more than four sections discount is allowed
7. Long term policy for upto 4 (four) years at discounted rate is also available.
8. There is no upper limit for sum insured either on building or contents.
9. The policy carries varying excess applicable to different sections.
10. Art-work, show pieces may be covered provided these are valued by Government approved valuers and their report is submitted.
11. Terrorism risk may also be covered at additional premium at the option of Insured and sole acceptance of company.
12. Housing societies having their own security arrangement can be given discount for Section II. Housing societies can also be given Volume Discount.
13. The discounts may be granted in such a manner that the minimum net premium after allowing all discounts should not be less than 50% of gross total premium under the policy
14. The premium will be loaded by depending on whether one policy period / two policy periods have been affected by claims.
4. How do I select the sum insured?
For building-For building, the sum insured must cover the full cost of rebuilding the property including architect fee etc and the cost of clearing away the debris and cost of obtaining sanctions for any new building regulations or by-laws.
For contents-the sum insured should be the replacement value except for Section III (All Risks) where it should be market value but for Jewellery it will be market value less 10% (making charges) or purchase cost.
For the remaining sections the sum insured is as opted by the proposer.
5. General Exclusions
This policy does not cover loss or damage to Home & its contents;
1. Caused by war and allied perils
2. Nuclear radiation and related causes.