Home Insurance Policy Common Questions and Answers

CA Satbir Singh — Wed, 23 Dec 2015 06:46:06 +0000

What will be the start date of my Home Insurance Policy ?

Your insurance cover starts from the commencement date indicated by you in the proposal form or receipt of the premium by us, whichever is later.

What is the Advise before buying Home Insurance Policy ?

When you decide to buy an insurance policy:

Check if the company selling the policy is registered with IRDA
Make sure you buy the policy through a genuine licensed agent or broker. Ask for an identity card or licence
You can also buy policies from the company directly
Read the policy brochure/ prospectus carefully and get to know what the policy covers and does not cover

If I have a home insurance policy with two different companies, will I benefit from both?

If you have a policy with two insurance companies, at the time of the claim both insurance companies will pay on a proportionate basis.

Is there an age limit on the property for it to be insured ?

No there is no age limit to buy a home insurance policy.

What are the documents required to be submitted in case of a home burglary claim ?

Following are the documents required

i) original invoice has to be submitted, giving the value of the items stolen.

ii) Replacement cost/repair cost,

iii) Copy of FIR,

iv) Final police report and

V) claim form.

What happens to the home insurance policy if the insured house is sold?

From the time the transfer of ownership becomes effective, the policy stands cancelled and the insured ceases to be an insured under the policy.

Can the perosn get the refund of premium paid for home insurance policy if the insured house is sold ?

Yes , he can claim refund of premium for the balance of the insured period.

What is the difference between burglary, theft and larceny?

Burglary : when there is forceful entry in the premises in order to rob.
Theft : when there is a robbery without any evidence of forceful entry in the premises.
Larceny : when a known person on the premises has robbed or stolen the insured’s belongings.

Can a HUF/ Leased (Mhada/Cidco) property be insured under home insurance policy ?

If you have financial interest in the property as owner or lessor then you can insure the property.

When is an FIR necessary in claim under home insurance policy?

A police FIR is mandatory in the case of:
Burglary
Theft
Malicious Damage
Riot and Strike
Terrorism

Will the company pay for debris removal during the reconstruction of the property in case of claim under home insurance policy? If yes, how much?

Yes, the company will pay a maximum of 1% of the total claim amount for debris removal.

What happens after the claim under home insurance policy is registered?

The surveyor contacts the customer in 48 hours. The claim form is sent to the customer’s correspondence address within 7 working days.

How will I know my Home Insurance policy is due for renewal?

The renewal notice for a home insurance policy is sent 30 to 45 days in advance of the expiry of the policy.

What is the Home Insurance premium charged for fire and special peril cover and burglary and theft cover?

Normally the premium charged is Rs. 70 per Rs. 1 lakh for fire and special peril and Rs. 240 per Rs. 1 lakh for burglary and theft.

Do Companies offer any discounts for home insurance policy ?

Yes, The discounts are normally offered e.g
24 hour security guard – 5%
Burglar Alarm – 5%
Both – 15%

Can a laptop be covered under a Home Insurance policy ?

Yes, it is covered only while it is in the insured residential premises.

How do we value the property under Home Insurance policy ?

Property valuation is done by multiplying the built up area of the property with the cost of construction per square feet.

Is an FIR necessary for a property damage claim under the Home Insurance policy?

An FIR is mandatory in case of Malicious Damage, Riot and Strike, Terrorism, Burglary, Theft & Larceny claims.. However, it is not necessary in the case of floods, storms, earthquakes, lightning, subsidence or impact damage due to aircraft loss.

What property is not covered under home insurance?

The following properties are not covered:

Properties under construction
‘Kutcha’ Constructions
Residence-cum-office properties
Residence-cum-shop
Land

What are the eligibility criteria to avail a Home Insurance policy ?

Any resident Indian who is the owner of the property & which is located in India can purchase a Multi Year Home Insurance Policy.

Source :-

http://www.policyholder.gov.in/General_Advice_for_Property_Insurance.aspx

:http://www.hdfcbank.com/personal/faq/faq-inner/gts8minx-gts8misj

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