Types of Home Insurance Coverage

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different types of home insurance coverage

Home insurance, also called as homeowner's insurance, is an essential financial safeguard created to protect homeowners from potential financial challenges arising from damage or loss to their residences and personal belongings. It acts as a safety net during unforeseen events, providing a shield for homeowners and assisting in their recovery and reconstruction endeavours after a covered incident.

Homes vary in size, and it is our responsibility to ensure the utmost care and diligence in protecting them. It shields us from various elements, including rain and other perils. Therefore, prioritising the insurance of our homes becomes imperative.

Types of Home Insurance

Some of the common types of Home Insurance available are

Structural Coverage

This is the most common type of insurance policy that protects the structure of your home in the event of severe damage. Typically, these policies cover the costs of rebuilding or repairing the damaged parts.

Home Content Coverage

As the name implies, Home Content Coverage protects the contents within your home. This typically includes furniture and electronic items. It is essential that you own the insured assets, and any damage should result from a deliberate attempt on your part. However, the coverage may differ from one insurance company to another.

Fire Coverage

This type of insurance covers damages caused by fire, including unforeseeable natural calamities and accidents. Fire coverage can apply to your home, its contents or both.

Burglary/House Breaking Coverage

Specifically designed to cover damages resulting from theft.

Tenant's Coverage

Tailored for tenants, this coverage focuses on protecting contents since tenants typically do not own the structure of the building.

What are the Coverages provided by Shriram Home Insurance?

Shriram Home Insurance offers the following coverages.

Home Insurance Coverages

Shriram Home Care Insurance offers coverage solely for the building's structure.

Building & Contents Cover

Shriram Home Care Insurance covers both the building's structure and its contents with its building and contents insurance.

Contents Only Cover

Shriram Home Care Insurance specifically covers the contents, offering protection exclusively for the belongings within the insured premises.

Add-on Cover provided by Shriram Home Insurance

Shriram Home Insurance offers a range of valuable add-on covers to enhance the protection provided by its standard policies. These add-ons are designed to cater to specific needs and circumstances, providing policyholders with a more comprehensive and customised coverage experience.

From safeguarding high-value items to extending coverage for unique situations, these add-on covers offer an extra layer of security and flexibility to tailor insurance protection to individual requirements. Some of the notable add-on covers offered by Shriram Home Insurance are listed below.

Protection for high-value items on an agreed-value basis

This add-on cover offers coverage for valuable possessions like jewellery, silverware, paintings, and artworks. In the event of physical damage to these valuable contents due to any covered incident, the insurer will cover the costs associated with repairing the damaged items.

Personal Accident Coverage

In the unfortunate event of damage to the home or its contents leading to the death of the insured person or their spouse, a compensation upto Rs. 5 lakhs will be provided to each individual.

Burglary and Housebreaking Coverage

This policy safeguards against any loss or damage resulting from burglary or housebreaking, defined as theft after a forcible and violent entry or exit from the premises or damage caused to the premises.

Employee Compensation Coverage

As per the Employee Compensation Act of 1923, employers must compensate their employees or their dependents in case of fatal accidents on the insured premises. This add-on ensures that the insurer takes on the responsibility of compensating the affected employee.

Plate Glass and Sanitary Fittings Protection

This coverage applies in the event of accidental breakage of any glass or sanitary fittings specified in the policy guidelines. In such instances, the insurer will compensate by paying the reinstatement value of the glass plate according to the sum insured.

All-Risk Coverage

The all-risk policy provides coverage for items such as laptops, mobiles and other valuable possessions like jewellery and cameras, which are susceptible to losses resulting from accidents.

Breakdown of Electrical and Mechanical Appliances

In our daily lives, electrical and mechanical appliance breakdowns are common. However, having Home Insurance can help mitigate these losses through coverage for the breakdown of electrical and mechanical appliances.

Electronic Equipment Insurance

This add-on covers all electronic equipment, including computers, medical devices, biomedical equipment, microprocessors and audio/visual equipment.

Baggage Coverage

The policy provides compensation for the loss of or damage to luggage resulting from accidents, break-ins, theft or personal mishaps while the person is on a trip within the territory covered by the policy.

Public Liability

In the public liability coverage, the company promises to protect the insured from legal responsibilities. This includes compensating for personal injuries, damage or loss to property, and even the insured person's death. The coverage also takes care of the costs, fees and expenses of the person making the claim. All of this applies anywhere in India and follows Indian laws.

What are the exclusions?

Shriram Home Insurance covers expenses resulting from damages caused by natural calamities such as floods and storms and man-made calamities like riots and strikes. However, specific exclusions are outlined below.

Loss or damage resulting from the insured's intentional actions or severe negligence.
Liability arising out of violation of any rules and regulations of the government or statutory authorities.
If there is a loss or damage to any property covered by this policy due to a lack of cooperation, providing false information, describing things inaccurately, or not disclosing important information, or if a claim is made dishonestly or with fraudulent intent, the insurance may be affected.
A decrease in the market value of any insured property after it has been repaired or reinstated.
Coverage does not extend to damage resulting from nuclear hazards or war within the country.

Conclusion

In conclusion, the various types of home insurance provide homeowners with a comprehensive shield against potential financial setbacks and unforeseen events. From safeguarding the structure of the home to protecting personal belongings and providing liability coverage, home insurance is a crucial investment in securing one's property and peace of mind.

Additionally, specialised coverage options, such as those for valuable items, employee compensation, and public liability, allow for a tailored approach to individual needs. Understanding these types of coverage helps homeowners to make informed choices, ensuring that their insurance aligns with their needs and provides the necessary support in times of unexpected challenges.

FAQs

1. Does house insurance cover sofa damage?

House insurance typically provides coverage for sofa or furniture damage caused by unexpected events such as a fire, flood or burglary. However, if the damage results from an accident or spill, you would require accidental damage cover to be eligible for a claim under your home insurance policy.