HOME Insurance

Home insurance, also commonly called hazard insurance or homeowner's 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 or at the hands of the homeowner within the policy territory. It requires that at least one of the named insureds occupies the home. The dwelling policy (DP) is similar, but used for residences which don't qualify for various reasons, such as vacancy/non-occupancy, seasonal/secondary residence, or age.

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; if the house is equipped with fire sprinklers and fire alarms; or if the house exhibits wind mitigation measures, such as hurricane shutters. Perpetual insurance, which is a type of home insurance without a fixed term, can also be obtained in certain areas.

Key Highlights

Why HDFC ERGO Home Insurance?

• A home insurance that adequately safeguards your priceless property and possession
• A home insurance that protects both your home structure and the household contents
• Low Cost Optional Cover for Burglary including Theft and Larceny
• Avail upto 15% premium discount for Security Features

Features

HDFC ERGO Home Insurance Plan

• With HDFC ERGO Home Insurance Policy, you can choose to cover the structure of your home only or include the household contents as well in a single policy with minimum documentation
• The policy covers:
• Fire and Special Perils: Building(Section I) and Contents(Section IA) covers the structure of your home and contents against
• Fire, Lightning, Explosion/Implosion, Aircraft Damage
• Riot, Strike, Malicious and Terrorist Damages
• Bursting and overflowing of water tanks, apparatus, pipes
• Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation
• Earthquake, Volcanic Eruption & other Convulsions of Nature
• Impact damage by rail/road vehicle and animal
• Subsidence and Landslide including Rockslide
• Missile testing operations
• Leakage from automatic sprinklers installations
• Bush fire
• The sum insured for the structure of the house is based on the Reinstatement Value. Quite simply, it would be the reconstruction cost of the house in the event of any loss/damage due to any of the insured events like Fire, Riots, Storm, Flood and so on.
• The reconstruction value for the structure is determined by the construction cost. This, however, would not include the cost of land. The home insurance policy will calculate reconstruction cost based on two parameters which are mentioned below:
• Built Up Area of the House (Square Feet)
• Cost of Construction in your area / locality
• Burglary and Housebreaking including Larceny and Theft (Section II) - Contents (as defined by Indian Penal Code)
• You can also insure the contents of your home against loss due to burglary and /or Housebreaking  or any attempted burglary. Jewellery kept in Locked Safe within the Home premises can also be covered.
• Sum Insured for Contents under Section I A Fire & Special Perils and Section II burglary & Theft should be the same.
• The Sum Insured for Contents / Valuadles is based on the market value.
• HDFC ERGO Home Insurance enables you to cover a host of household items like Electronic Equipments, Furniture & Furnishings, Jewellery, Clothes and so on.

Exclusions

HDFC ERGO Home Insurance Exclusion Policy

• Willful destruction of property
•  Loss or damage caused by depreciation or wear and tear and Consequential loss of any kind
•  Loss or damage, directly or indirectly, caused by or arising from or in consequence of or contributed to by Nuclear weapons material and / or Ionizing radiations
• Loss or damage, whether direct or indirect occasioned by the happening through or arising from any consequences of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection military or usurped power or civil commotion or loot or pillage in connection therewith
• *Please note these are illustrative exclusions. For a detailed list, kindly refer the policy wordings.
• *This content is descriptive only. Actual coverage is subject to language policy issued.

FAQ

What will be the start date of my insurance policy?
Your insurance cover starts from the commencement date indicated by you in the proposal form or receipt of premium by us, whichever is later.

What is the premium charged for fire and special peril cover and burglary and theft cover?
Rs. 70 per lac for fire & special peril and Rs. 240 per lac for burglary & theft.

How do we do the property valuation for home insurance?
Property valuation is done by multiplying the built up area of the property with the cost of construction per square feet. Currently the cost of construction is taken as 700 /800 depending on the location of the property. This multiplier is arrived at by the experts in the field after conducting a market survey.

If I have a home insurance policy with two different companies will I be benefited from both?
If you have a policy with two insurance companies, at the time of a claim both the insurance companies will pay on proportionate basis.

Can an entire society or building be covered under your home insurance policy?
Yes, an entire society can be covered. However, if the contents are to be covered a separate policy will have to be bought from us.

How will I know my policy is due for renewal?
Renewal notice for a home insurance policy is sent 30 to 45 days in advance of the expiry of the policy.

Can a laptop be covered under a home insurance policy?
Yes it is covered only while it is within the residential premises.

What are the eligibility criteria to avail a Home Insurance policy?
Any resident Indian who is the owner and / or occupant of the property can purchase a Home Insurance Policy.

Is there an age limit on the property for it to be insured?
Yes, there is age limit of 40 years to buy a home insurance policy.

Can a HUF / Leased (Mahada/ Cidco) property be insured?
If you have financial interest in the property as owner or lesser then you can insure the property. Which are the types of property you do not cover under home insurance? The following are the properties not covered under the Policy

• Property under construction
• Kutcha” construction
• Resident cum offices
• Land

Which are the types of property you do not cover under home insurance?
The following are the properties not covered under the Policy

• Property Under construction
• "Kutcha" construction
• Resident cum offices
• Land

What are the documents required to be submitted in case of a home burglary Claim?

• Original invoice giving value of the item stolen
• Replacement cost/ repair cost
• Final police report
• Claim form

Is FIR necessary for a property damage claim?
FIR is mandatory in case of malicious damage, riot, strike and terrorism. However it is not necessary in cases of:

• Flood
• Storm
• Earthquake
• Lightning
• Subsidence impact damage due to aircraft losses

What happens to the Home insurance policy if the insured house is sold?
From the time the transfer of owner ship becomes effective, the policy stands cancelled & the insured ceases to be an insured under the policy. We will then refund the premium for the balance of the insured period.

Do we offer any discounts to the customer if yes on what and how much?
The discounts available are:

• 24 hour security guard -5%
• Burglary alarm -5%
• Both -15%

In what cases is the FIR necessary in an home insurance claim?
A police FIR is mandatory in cases of:

• Burglary
• Theft
• Malicious damage
• Riot and Strike
• Terrorism

What happens after the home insurance claim is registered?
Surveyor contacts the customer in 48 hours time. Claim form is sent to customer correspondence address within 7 working days time.

Will the company pay for debris removal during the reconstruction of the property? If yes how much?
Yes, the company will pay a maximum of 1% of the total claims amount for debris removal.

What is the difference between burglary, theft and larceny?
Burglary is said to take place when there is a forceful entry in the premise in order to rob. Theft is said to take place when there is a robbery without any evidence of a forceful entry in the premise. Larceny is said to be when a known person in the premise has robbed or stolen the insured’s belongings.