Home Insurance- Inclusions and Exclusions

'Your Home' is the most prized possession you have, not only in terms of money, but also because it cocoons you and your family from the outside world. Would you not want that the place that havens you and your family should be protected well?

Here, we are not just talking about using fancy security systems or hiring security guards, to think that your house is protected entirely against threats but a financial protection against unforeseen risks. Home insurance can be a fairly comprehensive option to cover your house (structure) and its contents against various threats like fire and its perils, natural calamities and a few man-made calamities as well. The contents of your house could also be insured against burglary and theft, or mechanical breakdown.

There are things that a home insurance policy covers; and others that it does not.

THINGS COVERED:

* Fire & allied Perils - protects you against fire and its associated perils that might happen due to:

o Natural calamities, such as fire, lightning, earthquake, landslide, rockslide, flood, inundation, storm, tempest, typhoon, hurricane, tornado, or cyclone.

o Man-made calamities, such as domestic gas explosions, overflow and bursting of water tank or pipes, damage caused by aircrafts, riots, strikes, malicious or terrorist acts.

* Burglary & housebreaking - provides for damage to your house and the financial loss you suffer due to burglary. You can also get cover against damage caused by falling trees, electric poles or lampposts, collapsing aerials or satellite dishes, as well as damage caused by civic authorities while fighting fire.

* Jewelry & valuables - cover against accident or misfortune anywhere in India for valuable items, such as jewelry, gold, silver, and other precious metal items, watches, clocks, photographic equipment, video cameras, telescopes, microscopes, music instruments, and sports equipment.

* Plate glass - provides cover for breakage of fixed glass and sanitary fittings, including cost of frame, painting etc.

* Breakdown of domestic appliances - Provides cover for damage to domestic appliances, such as refrigerators, washing machines, air-conditioners that might occur due to accidental electrical or mechanical breakdown.

* Breakdown of electronic equipment - Provides cover for loss or damage to electronic equipment by accident or misfortune.

* Pedal cycle - provides cover for loss or damage to your pedal cycle against accident (including fire and its allied perils), burglary, and third party legal liability for accidental injury, death, or property damage.

* Baggage - provides cover for loss or damage of any baggage belonging to you and your family due to accidents while travelling anywhere in India/world. However, it excludes money securities, gold and silver ornaments, travel tickets, cheques, share certificates, and consumable goods.

* Personal Accident - protects you and your family members against accidents and violence, leading to bodily injury, disablement (permanent or temporary), or death. Some companies also provide for the educational expenses for a maximum of two dependent children.

* Public Liability Risk and Workmen's Compensation Risk - Protects against liability to the general public and your employee for accidental death, bodily injury, or property damage.

Most of the insurance companies make it mandatory for one to purchase at least two to five sections of the householders' insurance policy - along with the Fire and Allied Perils section being compulsory.

THINGS NOT COVERED:

* Deliberate destruction of property

* Loss or damage caused by war, wear and tear, atmospheric conditions etc.

* Losses if home has been unoccupied for more than 30 days (but few insurer do provide cover)

* Loss of cash, bullion, painting, works of art, and antiques

* Loss to the structure and/or contents of home due to acts of terrorism. (can be covered as an add-on)

What is covered and what is not is can also depend upon the kind of product and the company that you choose for your home insurance. To give you maximum cover against all odds, you could add on riders to your basic home insurance product (at an additional cost) that includes options varying across:

* Terrorism cover

* Debris removal cost

* Costs incurred to comply with building regulations following damage

* Professional fees towards architects, surveyors, etc. for superintending a building during rebuilding

* Cost related to movement of contents of your home to a temporary residence

* Loss of rent (for landlord)

* Personal Accident Cover

A home insurance policy usually has tenure of one year and has to typically be renewed every year. Home insurance is a product that helps you secure most of your valuables and helps you replace them in case of unforeseen events and calamities.