Home insurance
Today having one own home is big thing. For the middle class person it will take his entire life savings to build a small home. If some natural calamity happens like landslides, floods then it will destroy your that small home. So, home insurance is important.
Home insurance plan protects also against the hazards such as gas cylinder explosion, burglary, fire because of the electric short circuit, etc. Home insurance can cover 2 things:
Building structure
Contents inside home
Home insurance for the Building structure are:
Fire and special Perils cover: It is a comprehensive packaged which can cover the damages to home structure because of
Bush fire
Storm, tempest, flood & inundation
Fire
Riot, strike & malicious damage
Explosion & implosion
Lightning
Aircraft damage
Subsidence, landslides and rockslides
Damage due to impact by vehicles
Bursting and/or overflowing of water tanks, apparatus and pipes
Leakage from automatic Sprinkler installations
Missile testing operation
Terrorism Cover: It can cover the damages to home structure because of the acts of the terrorism.
Earthquake Cover: It can cover the damages to home structure because of earthquake.
Home insurance can not cover homes market value. It can cover the price of constructing a building. Sum insured can be calculated by multiplying construction rate by the area of the home per square feet.
Home insurance for the Contents inside home:
This can cover the loss or damages of contents inside home like electrical goods, clothing, electronic goods, jewelry, furniture and many other contents inside home. The covers which can be taken for contents are:
The Fire and Specials Perils Cover
Burglary
Earthquake Cover
Loss of silver articles, gold ornaments, jewelry and costly stones which are kept under the lock and key
Loss or damage to the contents because of attempted burglary or burglary
All contents can be covered on items market value. This means if loss occurs then claim will be paid on purchasing value of similar new thing minus depreciation.
|
