Non Life Insurance - Insuring your home? Make a list of items with photo proof

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Are you among the many who are not aware of one form of insurance called home insurance that offers a safety net to one’s dream home and personal property from unpredictable risks and which does not burn a hole in your pocket? Even if you have bought a home insurance plan, it is important to have important documentation while filing a claim.

Need to have:

Some of these policies not only insure the physical structure of the building, but also, provide insurance cover to other valuable belongings and personal effects. “But, what needs to be checked is whether one is insured for the total property value or just for the reconstruction cost,” says Nilesh Biswas, managing director, Calcutta Skyline.

While one can get one’s belongings and other house items insured or covered for as low as Rs 2,000-Rs 2,500 per year, getting the building structure insured should not cost more than around Rs 50 per lakh, according to Biswas. There are different packages offered by different insurance companies, providing covers against different set of circumstances that can cause damage to the property.

There are covers against damages cause by lighting, earthquake, fire, landslide, flood, rioting, theft and burglary and car accidents. One can either opt for package/s that suit/s one’s particular needs, requirements and threat potentials or opt for a mix and comprehensive scheme. If you choose a package that takes care of a broader list of risks, you can actually get a discount from most insurance companies.

Even if you are living in a rented house, you can buy an insurance policy covering only valuable belongings in the house and which may be subject to threats of theft and burglary or some other natural calamity.

Importance of paperwork:

Partha Chakraborty, an insurance adviser, advocates the need for preparing a comprehensive list of valuable personal belongings and house items before insuring them, and even recommends getting the possessions photographed. In an ideal scenario, such a list should be backed with records, such as date or year of purchase, price at the time of purchase, model number and valuation certificate (in case of jewellery and ornaments). This actually helps eliminate a number of hassles at the time of claims, said Nilanjan Dey, a certified financial planner.

“One should also be extremely particular about reporting any forms of damage to one’s property or belongings to the insurance company within the stipulated timeframe and with proper FIR receipt from the police station. One can also check with the insurer or agent if the company accepts such damage reporting through SMS or email. Nowadays, some insurance companies have started accepting these forms of communication. One should also find out at the time of opting for such an insurance itself if an FIR would be enough or some additional documents would be required in the eventuality of some damage or loss,” said Dey.

Source : FC Research Bureau back