| Q.1. 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.2. 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.3. 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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| Q.4. Does Home insurance covers flooding? |
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| Ans. Yes, it covers. You should not think it can be flooding due to river only. It can be flooding due to sewer overflowing or pipe burst of the water main pipeline which can flood your locality and your home. |
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| Q.5. Can I get Home insurance for apartment which is rented out to a tenant? |
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| Ans. Yes, you can insure the structure. As far as contents are concerned the tenant can get these insured as he is the owner of those assets. |
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