Know the types of home insurance plans you can choose from

Broad Policy: It protects the building structure, contents and occupants, said Naval Goyal, Founder and CEO, PolicyX.com, “The policy also covers any liabilities arising out of natural calamities, theft, burglary, etc. at your premises. However, it does not include any damage voluntarily caused, pre-existing damage by the property at the time of purchase of the policy, manufacturing defects and any damage to a structure having a collapsible structure.”

Home Contents Insurance: In the event of loss or damage to things kept in the house, the policy reimburses the policyholder an amount based on the market value – for example, jewellery, electronics, etc.

Structure Insurance: It protects the home from damage caused by structural damage. It also protects against robbery, theft, terrorist attacks, and covers any damage caused to the roof or ceiling, kitchen and bathroom fittings, etc. The policy also offers riders that protect additional structures such as backyards and garages.

Homeowner’s Insurance: Such a cover is beneficial for home owners as it entitles them to insure exclusively against loss of rent. It will also provide cover for public liability in the event of any damage to a third party due to untoward incidents.

renters insurance: Tenants can buy this policy to insure personal belongings like jewellery, furniture, electronic equipment and clothes kept at the rented premises.

Apart from these, there are several liability insurance policies available depending on your work and requirements. Some common forms of liability insurance are fire insurance, public liability cover and burglary and theft insurance.

fire insurance: It protects your home from accidental fire and short circuit which can lead to large scale destruction.

public liability insurance: It also covers expenses incurred due to unforeseen accidents, such as falling trees or damages caused to third parties or guests.

Burglary and Theft Insurance: This policy reimburses the cost of valuables stolen from your home.

what you should Know: Tarun Mathur, Chief Business Officer – General Insurance, Policybazaar.com, said one should compare different policies to understand the various features and discounts offered on premiums.

“Buy a policy with a higher sum assured. This will help when you consider the replacement value, which is the built-up area and the total cost of construction. This cover will ensure that you are well protected in unforeseen events, such as the cost of rebuilding your home.”