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Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance or boiler insurance. Property is insured in two main ways - open perils and named perils. Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism and war. Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion and theft.
Property insurance covers a business's building and its contents -- money and securities, accounts-receivable records, inventory, furniture, machinery, supplies and even intangible assets such as trademarks

Fire insurance business in India is governed by the All India Fire Tariff that lays down the terms of coverage, the premium rates and the conditions of the Fire Policy. The fire insurance policy has been renamed as Standard Fire and Special Perils Policy.

The risks covered are as follows:

Dwellings, Offices, Shops, Hospitals(Located outside the compounds of industrial/manufacturing risks) Industrial / Manufacturing Risks Utilities located outside industrial/manufacturing risks Machinery and Accessories Storage Risks outside the compound of industrial risks Tank farms / Gas holders located outside the compound of industrial risks
Perils Covered- Cause of Loss

Fire Lightning Explosion/Implosion Aircraft damage Riot, Strike Terrorism Storm, Flood, inundation Impact damage Subsidence , landslide Bursting or overflowing of tanks Bush fire etc.

In the event of a fire loss covered under the fire insurance policy, the Insured shall immediately give notice there of to the insurance company. Within 15 days of the occurrence of such loss the Insured should submit a claim in writing giving the details of damages and their estimated values. Details of other insurances on the same property should also be declared.

Earthquake is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage.
Most earthquake insurance policies feature a high deductible, which makes this type of insurance useful if the entire home is destroyed, but not useful if the home is merely damaged. Rates depend on location and the probability of an earthquake. Rates may be cheaper for homes made of wood, which withstand earthquakes better than homes made of brick.

As with flood insurance or insurance on damage from a hurricane or other large-scale disasters, insurance companies must be careful when assigning this type of insurance, because an earthquake strong enough to destroy one home will probably destroy dozens of homes in the same area. If one company has written insurance policies on a large number of homes in a particular city, then a devastating earthquake will quickly drain all the company's resources. Insurance companies devote much study and effort toward risk management to avoid such cases.
Landlords insurance is a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within.

The policy will normally cover standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. This may be something like accidental damage, legal protection or rent guarantee cover.

Common differences in use of the phrase landlords insurance is buy to let insurance, let property insurance, rented property insurance, or property owners insurance.
Home insurance, also commonly called hazard insurance or homeowners insurance (often abbreviated in the real estate industry as HOI), is the type of property insurance that 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, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

The cost of homeowners 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. Typically, claims due to earthquakes, floods, "Acts of God", or war (whose definition typically includes a nuclear explosion from any source) are excluded. Special insurance can be purchased for these possibilities, including flood insurance and earthquake insurance. Insurance must be updated to the present and existing value at whatever inflation up or down, and an appraisal paid by the insurance company will be added on to the policy premium.

The home insurance policy is usually a term contract—a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the home will be damaged or destroyed: for example, if the house is situated next to a fire station, or if the house is equipped with fire sprinklers and fire alarms. Perpetual insurance, which is a type of home insurance without a fixed term, can also be obtained in certain areas.

In the United States, most home buyers borrow money in the form of a mortgage loan, and the mortgage lender always requires that the buyer purchase homeowners insurance as a condition of the loan, in order to protect the bank if the home were to be destroyed. Anyone with an insurable interest in the property should be listed on the policy. In some cases the mortagagee will waive the need for the mortgagor to carry homeowner's insurance if the value of the land exceeds the amount of the mortgage balance. In a case like this even the total destruction of any buildings would not affect the ability of the lender to be able to foreclose and recover the full amount of the loan.

The insurance crisis in Florida has meant that some waterfront property owners in that state have had to make that decision due to the high cost of premiums. See Citizens insurance

New India Assurance is a public sector insurance group providing services in the Indian sub-continent with a network of 1068 offices. The contributing factor of the company is apparent from the fact that with its superior capital position and strong operating performance, it has recorded significant international operations. New India Assurance has also being contributing considerably in the home insurance sector apart from its other regular plans.

New India Assurance Householders Policy is the home insurance plan for the company which is a specific package policy designed to meet the insurance requirements of a householder which covers 10 sections for insurance against loss/damage due to natural or man-made calamities. The company also offers discount in premium based on the number of sections of the policy opted for with coverage for building structure and its contents.
  • Fire, Lightening, explosion of gas in domestic appliances
  • Bursting and overflowing of water tanks, apparatus or pipes.
  • Riot, Strike, Malicious or Terrorist Act
  • Flood, Inundation, Storm, Typhoon, Hurricane, Tornado or Cyclone
  • Damage due to earthquake, subsidence and Landslide (including Rockslide).
  • Damage caused by Aircraft & Impact damage
  • Loss due to burglary, house breaking, larceny or theft.
  • Loss/damage to jewellery and valuables by accident or misfortune, subject to the value declared in the schedule.
  • Loss/damage of Plate glass and damage of domestic appliances due to electrical/mechanical breakdown.
  • Baggage insurance while on Travel
  • Third party liability and personal accident.
New India Assurance offers a value equivalent to the market value of household contents i.e. the value for which this used item could be bought or sold in the market as insurance. And for the building structure, the claim amount payable would be the amount required to bring the damaged structure to the same condition as it was prior to the damage subject to the adequacy of the sum insured
The policy comprises of 10 sections as given here under

Section I - Fire & Allied Perils

A - Coverage for building
B - Covers contents of the dwelling belonging to the proposer and his/her family members permanently residing with him/her.

Allied Perils:

a. Fire, Lightening, Explosion of gas in domestic appliances
b. Bursting and overflowing of water tanks, apparatus or pipes.
c. Damage caused by Aircraft
d. Riot, Strike, Malicious or Terrorist Act
e. Earthquake, Fire and/or Shock, subsidence and Landslide (including Rockslide) damage
f. Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tomado or Cyclone.
g. Impact damage.
Section II - Burglary & House Breaking including larceny and theft.
Covers contents of the dwelling against loss due to burglary, house breaking, larceny or theft.

Section III - All Risks (Jewellery & Valuables)
Covers loss or damage to your jewellery and valuables by accident or misfortune whilst kept, worn or carried anywhere in India subject to the value declared in the schedule.Section

IV - Plate GlassLoss
or damage to fixed plate glass in the insured premises by accidental breakage subject to limit of sum insuredSection

V - Breakdown of Domestic appliances

Covers domestic appliances against unforeseen and sudden physical damage due to mechanical or electrical breakdown.

Section VI - T.V. Set including VCP/VCR (ALL RISKS)
Covers loss or damage to T.V.Set including VCP/VCR by fire and allied perils, burglary, house breaking or theft, breakage due to accidental external means, mechanical or electrical breakdown. Any legal liability arising out of bodily injury or accidental death of any person other than insured's family members or employee as also damage to property not belonging to or in the custody of insured , caused by use of the T.V. Set is also covered upto a limit of Rs.25,000/-.

Section VII - Pedal Cycles (All Risks)
Covers loss or damage to pedal cycles by :-
1. Fire & allied perils
2. Burglary, housebreaking, theft
3. Accidental external means
4. Third party personal injury or Third party property damage for Rs.10,000/-

Section VII - Baggage Insurance
Covers loss or damage to insured's accompanied baggage by accident or misfortune whilst the insured is traveling on tour or holiday anywhere in India.

IX - Personal Accident
Covers Death or bodily injury by accidental, violent, external and visible means to the insured person named in the schedule and subject to limits specified therein.

Section X - Public Liability
Covers Insured's legal liability for bodily injury or loss of or damage to property of third party limited to amount specified in the schedule and workmen's compensation liability to domestic servants engaged in insured's premises.

It is compulsory to opt for Section IB of the policy. A minimum of three sections including Section IB have to be taken for issuance of this policy.
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.

Sections I A & B, II, III, IV, VI ,VII & VIII should be insured on market value basis as described above.

It is a condition of Section V i.e. breakdown of domestic appliances , that the sum insured should represent the current replacement value of a similar item. For e.g. to insure 165 ltr. Godrej fridge which is 3 years old, the sum insured should be equivalent to the cost price of a new 165 ltr. Godrej fridge.

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.

The sum insured under section IX i.e. Personal Accident should not exceed 72 months salary from gainful employment.
How to claim
In case of any incident leading to a valid claim under the policy, following steps should be taken:
  • Take necessary steps to minimize the loss/damage.
  • In case of fire, inform fire brigade immediately.
  • In case of theft, larceny or burglary inform the police immediately along with a list of items stolen and their approximate value.
  • Inform insurance company by phone or fax and in writing.
  • Extend full co-operation to the surveyor appointed by the insurance Co. and provide necessary documents to the substantiate the loss. A claim form issued by the company is also to be submitted.
  • In case any rights of recovery exist against any other party responsible for the loss, your rights of recovery have to be subrogated to the insurance company on payment of claim.

What are the losses/ perils covered under this policy?
Home Insurance covers natural and man-made calamities.
  • Fire
  • Earthquake
  • Lightning
  • Floods
  • Explosion of gas cylinder
  • Spread of Fire due to short-circuit
  • Riot, Strike, Malicious damage
  • Aircraft laws
  • Impact from rail/ road vehicles
  • Storm, Cyclone, Flood
  • Landslide
  • Burglary
  • Terrorism
What is the procedure for assessing the value of my home structure and its contents?
The value of your home structure is assessed as per the area of your home multiplied by the rate of construction per. sq. feet, as on the date of taking the policy. For example, if your home is 1000 sq. feet and the construction rate per sq. feet is Rs. 800/-, then the sum insured for your home’s building structure is Rs. 8,00,000.On the other hand, the contents are assessed on the market value of the items. This means that if there were a loss, the claim would be paid on the value of purchasing a similar new item, less depreciation for the usage.
I live on rent, why would I require insurance?
We have an option to cover your Contents. Our comprehensive Home Insurance policy covers your:
  • Household appliances
  • Jewellery
  • Furniture & fixtures
  • Personal items at your home
  • Against fire and allied perils like earthquake, terrorism and burglary.
I live in a building insured by my society. Would I need to take additional Insurance?
The insurance that your society provides may offer you a limited cover and generally includes only structure and not contents.
You should buy home content insurance cover for your belongings if building structure of your house is insured by the society.
Is my home insured if my wife uses a part of it (room) for conducting coaching classes?
No. Home used for business purposes are not covered.
What are the exclusions of this policy?
The company is not liable to make payment for:
  • Any loss or damage by the insured and/ or insured’s domestic staff direct or indirect involvement in an attempted burglary
  • Any loss or damage on account of loss of livestock, motor vehicles, pedal cycles, money, securities for money, stamp, bullion, deeds, bonds, bills of exchange, promissory notes, stock or share certificates, business books, manuscripts, documents of any kinds, ATM debit or credit cards, unless previously specifically declared by the company
  • Any loss or damage to any property that is illegally acquired, kept, stored which is subject to forfeiture.
  • Any loss or damage occurring while insured’s home is unoccupied, for a period of more than 30 days consecutively and if the insured failed to inform the company about the same.
What if I sell the property during the insured period?
You can cancel the policy and get the premium back on pro-rata basis.
If three people share an apartment can each one take a separate home insurance policy?
Yes, for their part of the asset.
What are the exceptions against cover within the purview of the Householder's Insurance Policy?
Under Section 1 (B) the Householder's Insurance policy, any loss or damage suffered to the following is treated as an exception and cannot be claimed.
  • Consumable articles
  • Money/ Securities/ Stamps/ Stamp collection
  • Bullion and Livestock
  • Motor vehicles and Pedal cycle
  • Deeds/ Bonds/ Bills of exchange/ promissory notes/ Shares
  • Books/ Manuscripts
  • Loose precious stones, Jewellery and valuables
How do we get the valuation done of our property?
The contents are covered on market value i.e. the cost of buying a similar new item after deducting appropriate depreciation on the basis of the age of the item. This includes household appliances, furniture, jewellery, personal effects and miscellaneous items.
On what basis are the structure and contents insured?
The structure of your home is insured as per the re-instatement value and the contents are insured as per the market value.
How do you differentiate between riots and terrorism cover in case of Home policy?
  • Riot refers to the violent disturbance of the public peace by three or more persons assembled for a common purpose.
  • Terrorism/ Terrorist activity means use of force or violence harming human life or property, with the objective of pursuing personal or vested interests.