| Q.1. I recently brought a 20-year-old independent house. Considering the age of building, the insurance company I approached has refused to insure my house. Can insurance companies do so? What should I do? |
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| Ans. Insurance company should not refuse insurance of old building unless and until it is so old that it may collapse – anytime due to heavy rains/ floods or even minor earthquake. You can approach another insurance company and they will most probably insure it. |
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| Q.2. Can I port my home insurance policy to another insurer or will I have to wait till the term gets over? Will I get a refund from the old one? |
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| Ans. It is better to wait till term gets over and there you should change the insurance company.
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| Q.3. How much does Home insurance cost? I have purchased an apartment for Rs.4 crores? Would my premium be around Rs.50, 000? |
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| Ans. Cost will depend on the covered area of your apartment and quality of construction. Assuming that your apartment is of 5000sq.ft. and construction cost per sq. ft is Rs.2000. Then the value of your apartment for insurance purpose will be Rs.1 crore and not Rs. 4 crores (may be Rs. 3 crores is due to land cost). Premium for Rs. 1 crore will be Rs.5000 for 1 year. To this you will have to add the value of the contents, which are to be covered. Premium to be paid will be extra for insurance of contents. |
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| Q.4. What information do I need to provide so that you can give me quote? |
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| Ans. You have to give the following information; |
- Constructed area in sq.ft. and type of construction.
- Details of all assets & equipment like furniture, electronic equipment, air conditioners/ refrigerator, jewellary along with year of purchase and purchase price
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| Q.5. What does standard home insurance policy cover? |
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Ans. It covers the following risks:
(a)- Fire
(b)-Explosion due to gas appliances
(c)-Bursting of water tanks or pipes
(d)-Riots
(e)-Strikes
(f)- Earthquake
(g)-Subsidence
(h)-Storm
(i)-Flood cyclone
(j)-Malicious acts of various types
(k)-Burglary
(l)- Earth quake
(m)-Terrorism
(n)-Flooding |
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