Your home is more than just a building; it’s a place filled with memories, belongings, and a sense of security.
However, unforeseen events such as natural disasters, theft, or accidents can pose a risk to your home and its
contents. This is where home insurance comes into play. In this comprehensive guide, we will explore the world of
home insurance, its benefits, coverage options, and essential factors to consider when selecting the right plan for
Home insurance, also known as homeowner’s insurance or property insurance, is a financial safeguard that protects
your home and its contents against various risks. It provides coverage for structural damage, loss or damage of
personal belongings, liability for injuries or damage to others, and additional living expenses in case you are
temporarily displaced from your home.
Some of the most common potential risks are:
If your home suffers from structural damage due to these perils, your insurance policy will cover the repair or
rebuilding costs, ensuring that your investment is protected.
Home insurance not only protects your home but also covers the loss or damage of personal belongings. This includes
furniture, appliances, electronics, clothing, jewelry, and other valuable items. In case of theft, fire, or other
covered events, your insurance policy will reimburse you for the value of the lost or damaged items, allowing you to
replace them without significant financial burden.
Home insurance includes liability coverage, which protects you from legal and financial liabilities in case someone
gets injured on your property or if you accidentally damage someone else’s property.
Knowing that you have insurance coverage in place to protect your most significant investment and your personal
belongings provides a sense of security. It allows you to focus on enjoying your home and living worry-free, knowing
that you have a safety net in case of unexpected events.
Home insurance premiums in India are typically affordable, considering the level of coverage and protection they
offer. The cost of home insurance is influenced by factors such as the value of your home, its location,
construction type, security measures in place, and the coverage limits you choose. By comparing different insurance
providers and policies, you can find a plan that suits your budget while providing adequate coverage.
Exclusions in Home Insurance Plan
Here is the list of all the types of Home Insurance policies that are operational in India:
Standard Fire and Specials Perils Policy
It is one of the basic or you can say standard home insurance plans designed to offer protection to the home
against fire and other special perils. Be it homeowners or property owners, anyone can purchase this plan and
financially protect household goods and other possessions. The sum assured in the Standard fire and special perils
policy is determined by the cost incurred for the reconstruction of the building.
The coverage included in the Standard Fire and Special Perils Policy are:
Home Structure Insurance
Home structure or building insurance offers financial insurance to your home structure from all types of risks and
damages. Protects your home from inside and outside starting from your kitchen and bathroom fittings to your garage,
gardening shed to motor shed, etc.
Public Liability Coverage
If any guest or third person suffers from an injury inside your home, then you can claim compensation under public
liability coverage as a part of your home insurance plan.
It is an extended home insurance policy that financially protects you and your family member from an accident in
the insured home. Covers for permanent and in case of death disability.
Theft and Burglary insurance
As the name implies, one can claim compensation for damages taken place in your insured home due to theft or
It is a home insurance plan that offers protection to home as well as all the contents inside it. It covers content
mainly household appliances, washing machines, documents, refrigerator, TV, or any other goods at home. This plan
restores your entire home and its interiors.
If a tenant buys tenant insurance coverage as a part of a home insurance plan. The focus will be mainly on
protecting the contents and the goods inside the home. It helps the renters also in protecting appliances and other
goods through this coverage.
This insurance plan covers mainly the rent loss, third-party liabilities, and overall hampering of building
structure. However, it excludes loss of property due to war, wear and tear, willful destruction, no one has occupied
from a certain period.
Factors that determine your Home or Property Insurance Premium
As you can see, apart from the property size, other factors that determine the home insurance premium are the
construction costs and location, all contribute an equal role in calculating the cost of the property. This means no
two houses will be eligible for the same insurance amount as there are several factors at play.
The more coverage the higher the premium will be. While buying a home insurance plan, you will come across
varying coverage options. Some plans will be offering coverage only for house structure while some are offering
coverage for the content of the house. Depending on the coverage you choose, the premium for your plan will be
The policy premium and sum insured of a small home are always lower than the sum assured and policy premium of
a bigger home.
When you are filing a home insurance claim, do not miss out on any details. To make it easier for you, we have
explained the process of the Home insurance policy claim.
Here are the top myths of home insurance and the truth behind it.
Myth 1 – My Home Insurance Plan will protect me from all unforeseen events
In India, when you take a home loan, it’s mandated to purchase home loan insurance. However, many people are
unaware of the fact that home loan insurance is offering coverage to the lender, not to you as a borrower. It will
financially protect the lender in case fail to pay the home loan EMIs.
Myth #2: It is enough if I take a basic home insurance plan.
Many people to get the benefit of lower premiums go with the standard home insurance plan; however, one needs to
understand that the basic home insurance plan is not covering contents and damages due to flood, etc. So, always
read the policy document carefully before choosing any plan.
Myth 3: Tenant does not require home insurance
It is one of the biggest myths of Home Insurance in India that being a tenant, home insurance is not required. It
is necessary for a tenant to understand that a home insurance plan will cover the cost of the contents of your home
like refrigerator, washing machine, furnishings, and more.
Myth 4: Home insurance covers only the structure and contents of the property.
Many homeowners had a misconception that a home insurance plan only covers the structure and the content of the
house. However, it is just the basic coverage; you can add more to it like ATM withdrawal cover, temporary
resettlement cover, dog insurance cover, monsoon cover, public liability cover, etc.
Myth #5: The coverage amount offered by my home insurance plan should match my home’s actual
When you are going with the home insurance plan to match it with your property’s market value, then you are
likely to pay higher premiums. Instead, opt for coverage that is equal to the cost of rebuilding your property.
Myth #6: My policy is covering termite damages
Many home insurance companies are not offering coverage for termite infestation. As they are providing you
compensation for natural and fabricated calamities. Termite damages happened mainly due to lack of maintenance.
In today’s unpredictable times, buying a home insurance plan has become a necessity. It will guard your
property against all the unpredicted damages and losses. If you take insurance from more than one company, they can
compensate you on a proportionate basis when you claim the amount. Although you can rent the insured house, if you
sell the property, there is automatic cancellation of the home insurance policy.
So what are you waiting for? Experience insurance on the go with our PBPartners agent. We are one of the Best PoSP
Companies in India.
Discover limitless earning potential by working as an insurance PoSP with
PBPartners – are you ready?"
All individuals who are property owners can buy a home insurance plan. In case, you are purchasing housing society
insurance, then you must be an authorized member of the society’s managing committee
For a home insurance policy, the value of your home structure is determined by the reconstruction cost and not the
market value. For instance, a home has a total-built up area of 1200sq.ft. The current cost of construction is Rs.
1000 per sq. ft. Then the sum insured for your home’s structure is Rs. 12, 00,000.
The policy tenure of home insurance can vary depending on the insurance provider and the specific policy you
choose. In India, most home insurance policies offer coverage for a one-year period. This means that the policy is
valid for one year from the date of purchase and needs to be renewed annually to maintain continuous coverage.
Yes,Home insurance policies generally provide coverage for damages and losses caused by fire, including damage to
the structure of your home and the loss or damage of personal belongings.
The answer to whether your home is still insured when running a home tuition business within it depends on the
terms and conditions of your home insurance policy. Generally, standard home insurance policies are designed to
cover residential properties for personal use rather than commercial activities. Therefore, running a business from
your home may impact the coverage provided by your policy.
Yes, you need to submit a claim for the cancellation of your home insurance policy, In this case, the premium
amount deducted accordingly, the rest is refunded to you, and your home insurance policy becomes null.
Insurance claims are time-bound. Post submission of claim form, the insurer dispatches a surveyor for your case
within 48 hours. The surveyor after analyzing the property damages submits the FSR (Final Survey Report) to the
The Standard Fire and Special Perils policy does not cover compensation for the loss of contents inside the home.
You have to choose add-on-covers to your standard policy or opt for other types of insurance policies that offer
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.