A specific contract
The homeowner's insurance policy names precisely what will and what will not be paid in the case of various events
Home insurance, also commonly called hazard insurance or homeowner's insurance, 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, etc. The home insurance policy is usually a term contract-a contract that is in effect for a fixed period of time. The insured must pay the insurer the premium each term.
The cost of homeowner's insurance often depends on what it would cost to replace the house and which additional riders-additional items to be insured-are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events.
For instance, New India Assurance has a package policy specially designed to meet the insurance requirements of a householder by combining under a single policy, a number of its 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.
The policy comprises of 10 sections. The first section deals with fire and allied perils, features coverage for the building and contents of the dwelling belonging to the proposer and his or her family members permanently residing with him or her. Allied perils include fire, lightning, 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, tomado or cyclone impact damage.
The second section covers contents of the dwelling against loss due to burglary, house breaking, larceny or theft. The third covers loss or damage to jewellery and valuables by accident or misfortune whilst kept, worn or carried anywhere in India subject to the value declared in the schedule.
Other sections include loss or damage to fixed plate glass in the insured premises by accidental breakage subject to limit of sum insured, breakdown of domestic appliances, television and video equipment, pedal cycles, loss or damage to the insured's accompanied baggage by accident or misfortune, personal accident, public liability, etc.
How to select the sum insured
For the insurance of household items, it would be necessary to group the items in a broad category like furniture, clothing, linen, utensils, crockery etc. and give a value equivalent to the market value i.e. the value for which this used item could be bought or sold in the market.
For the section relating to breakdown of domestic appliances, it is important that the sum insured should represent the current replacement value of a similar item. 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.
How to claim insurance
l In case of any incident leading to a valid claim under the policy, following steps should be taken:
l Take necessary steps to minimize the loss/damage.
l In case of fire, inform fire brigade
immediately.
l In case of theft, larceny or burglary inform the police immediately along with a list of items stolen and their approximate value.
l Inform insurance company by phone or fax and in writing.
l Extend full co-operation to the surveyor appointed by the insurance Co. and provide necessary documents
to substantiate the loss. A claim
form issued by the company is also to be submitted.
The homeowner's insurance policy names precisely what will and what will not be paid in the case of various events
Home insurance, also commonly called hazard insurance or homeowner's insurance, 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, etc. The home insurance policy is usually a term contract-a contract that is in effect for a fixed period of time. The insured must pay the insurer the premium each term.
The cost of homeowner's insurance often depends on what it would cost to replace the house and which additional riders-additional items to be insured-are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events.
For instance, New India Assurance has a package policy specially designed to meet the insurance requirements of a householder by combining under a single policy, a number of its 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.
The policy comprises of 10 sections. The first section deals with fire and allied perils, features coverage for the building and contents of the dwelling belonging to the proposer and his or her family members permanently residing with him or her. Allied perils include fire, lightning, 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, tomado or cyclone impact damage.
The second section covers contents of the dwelling against loss due to burglary, house breaking, larceny or theft. The third covers loss or damage to jewellery and valuables by accident or misfortune whilst kept, worn or carried anywhere in India subject to the value declared in the schedule.
Other sections include loss or damage to fixed plate glass in the insured premises by accidental breakage subject to limit of sum insured, breakdown of domestic appliances, television and video equipment, pedal cycles, loss or damage to the insured's accompanied baggage by accident or misfortune, personal accident, public liability, etc.
How to select the sum insured
For the insurance of household items, it would be necessary to group the items in a broad category like furniture, clothing, linen, utensils, crockery etc. and give a value equivalent to the market value i.e. the value for which this used item could be bought or sold in the market.
For the section relating to breakdown of domestic appliances, it is important that the sum insured should represent the current replacement value of a similar item. 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.
How to claim insurance
l In case of any incident leading to a valid claim under the policy, following steps should be taken:
l Take necessary steps to minimize the loss/damage.
l In case of fire, inform fire brigade
immediately.
l In case of theft, larceny or burglary inform the police immediately along with a list of items stolen and their approximate value.
l Inform insurance company by phone or fax and in writing.
l Extend full co-operation to the surveyor appointed by the insurance Co. and provide necessary documents
to substantiate the loss. A claim
form issued by the company is also to be submitted.
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