Handpicked to provide a unique
ambience, household collections reflect the thoughts and feelings of the owner.
Despite the fact that people take good care of their household collections, there
is still the risk of loss and damage. Natural calamities are neither
predictable nor can they be put off. Opting for household insurance is a prudent
and sensible decision to protect the value of the possessions against any damage.
What is household insurance?
In general household insurance refers to the security offered for the contents of any house or for the
building or for both. Household insurance is described differently based on the
location of the house/building and the insurance company.
Types of household insurance
Household contents insurance: This insurance covers removable
collection of contents in the house such as jewelry, clothes, accessories, laptops,
cameras, electrical appliances like washing machine and furniture. This
insurance is useful for people who have rented a house or are living with
friends or family. The damages covered under this category of insurance
generally include storm, lightning, flood, theft, riot or spiteful damage,
fire, explosion, falling tree and damage caused by vehicles, animals and
People who prefer cheaper
insurance premiums can opt for limited coverage but this option includes risk
as damage caused by natural calamity can never be predicted. The policies and
coverage on household contents insurance vary from company to company. Few
companies offer cover for contents surrounding the house also.
Household building insurance: Household building insurance covers fixtures,
furnishings and fittings in the house. Insurance coverage includes all rooms of
the house like fitted kitchens and baths, boilers, garages, roofs, walls,
windows etc. In general, any item that cannot be moved is covered under
household building insurance. This insurance is very useful for people who live
in their own house.
This insurance offers cover
against lightning, earthquake, falling tree, aircraft, fire, explosion, oil
leaking from a central heating system, theft or animal accident. This insurance
policy does not cover damage caused due to negligence.
In general household insurance comprises
a multi-risk policy for contents and building. Few companies prefer separate
policies for fire, theft and liability, few other companies charge extra
premium for cover against fire, liability and damage. Any person settling for
household insurance can either buy both these household insurances or choose
one of them.
Who can benefit from household insurance policy?
This policy is suitable for all householders, landlords and tenants. Policies
are issued for a maximum period of one year. Choice can be made in between an all-inclusive
cover or a separate cover. Under an all-inclusive policy, all the 10 sections of
the home insurance policy will be covered. Under separate policy, the person
has the liberty to choose the items that need insurance cover. At least two
items should be chosen for cover under the separate cover policy.
What cover is offered?
Generally, the policy insures against loss or damage to the house and its
content including jewelry, domestic appliances and other valuables. It also
covers third-party liability and loss of baggage during travel. The coverage
provided under various sections is as listed below (items covered may vary
Fire and associated threat: Covers loss or damage to building and
contents due to fire, lightning, explosion etc.
Burglary and theft: Covers loss or damage of household property and
contents due to burglary or theft while the house is either occupied or unoccupied.
Personal accident: This insurance provides cover for the entire
family against personal accidents like permanent complete/partial disablement
Baggage: Your accompanied baggage is covered under insurance while
Transportation of household goods: Covers household contents
against loss or damage during transit while relocating within the same city or
to a different city.
Audio and audio-visual appliance :Complete coverage for appliances
like television against fire, electrical or mechanical breakdown, burglary,
theft and legal liability up to specific amount.
Breakdown of domestic appliances: Covers appliances like
refrigerator against the risk of unexpected and sudden mechanical or electrical
Purchase protection: Provides automatic protection for newly
purchased articles against fire and burglary.
How much household insurance is required?
The right value of cover for contents and/or building is known as sum insured. The premium is calculated
based on this value. The sum insured must be adequate enough to cover the total value of the goods and buildings to
be insured. If the sum insured is very low the insurance will cover only a part
of the cost of the total damage.
Household insurance quote
Collect information regarding household insurance from a minimum of 5 companies and compare their offer and
cover. Compare the premium charged by different insurance companies for the
same value of cover. Do not settle in for cheapest premium insurance as it will
not offer complete cover if a damage occurs. Verify the insurance company
before purchasing the premium from them - ensure that they are competent as
well as effective and have a good reputation in the market.
Online household insurance quote
Online household insurance quotes can be obtained from the various insurance company websites. Online insurance
quotes save the time of a person as he/she need not run around from company to
company to collect quotes and information. Log on to the insurance company
websites and fill up the online quote form. You will receive a quote within a
few hours (depending on the company you choose). You should furnish details regarding
the building to be insured, content to be insured, occupants of the house,
locality of the house and loan applicant.
Contents insurance is a type of insurance that pays for damage or loss of personal possessions of a person while
the contents are in the applicant's house. Few contents insurance policies
provide limited cover for personal possessions that are taken out provisionally
for a short term.
Contents insurance offers cover
for fire, explosion, earthquake and natural calamities. It also offers cover
against theft, power surges, impact damage, damage caused by bursting and
overflowing of geysers or water pipes, transit damage and liability.
Contents polices have limited cover with regard to security that comprises of
locks, armored doors, window shutters, grills, etc. While claiming for contents
original bills should be produced.
Unoccupied house insurance
Any house that is vacant should also be protected; just like an occupied house. People might own two houses and
keep moving from one to another frequently or they might have a house that
needs to be sold. Normal house insurance does not cover unoccupied house and a
special insurance called unoccupied house insurance helps to cover such homes.
insurance companies avoid house insurances if the house is vacant for more than
30 - 60 consecutive days because the risk of damages is much more when compared
to occupied houses.
Floods, fire or any natural calamity and cause immense damage to the house and that might go unnoticed as
the house is vacant. The expenses incurred to repair this damage will be much more
when compared to a house that is occupied. In general unoccupied houses can be
insured by two methods
Vacancy permit: A vacancy permit is an extension of the current
insurance covering the already occupied house. Vacancy permit is more expensive
when compared to normal insurance premiums.
Unoccupied house insurance: Many of the insurance companies offer
unoccupied house insurance. You can pick unoccupied house insurance from any
Unoccupied house insurance tips
In general insurance premiums for unoccupied houses are more expensive than normal home insurance. The insurance
premium for such houses can be lowered by:
- Installing a security system in the house.
- If planning to sell the house, do not vacate the
house until it is sold.
- In case you should vacate the house, let it on rent
until you finalize on the sale of the house.
- Periodically check the house to ensure that all is
- Ensure everything is locked and sealed properly in
- Request your neighbor to park his/her in the driveway
of the house so that it appears occupied.
- While fixing up the insurance company, discuss with
them in detail about the various measures you have taken to reduce the
risk of damage to the house.
- Tell them how long you expect the house to be vacant
and also tell them when the house will be occupied again. This step is
more suitable for people who want to get a vacancy permit.