We are more familiar with Life Insurance, Medical Insurance, Auto Insurance. The realty is that, there are many other insurance policies available in the market to protect every valuable assets of the citizen. If you take an example, you are buying a house or constructing your own house by spending about 60 lacs with the dream of staying in that house for rest of the life.
The probability of damage on the house structure or building is very less, but if it happens because of riots, terrorist, or take earthquake which destroys the complete building. Are you prepare to handle the situation?. It is an unexpected event and would ruin your entire life. If you are not aware of this policy, House Holder Policy which is taken for protecting your house from the unexpected events and it also provides the rider to insure goods inside the house. This policy is not popular among the people one reason it is new and less marketing taken by the banks.This article explores the details about the house holder policy and how it can be purchased.
also read:
What is House Holder Policy?
This policy used for protecting your house from the natural calamities like earthquake, flood and unexpected events like riots, terrorist attack or burglary. In the above list, most of the options would be given as the customer’s choice to select and protect from the specific cause. If you think that in your place there is very less chance of terrorist attack, you may not select that option on the policy. Depends on the number of riders or options selected on the policy, the premium would vary. There is previous article about the same topic. Pleas read that
The above link provides more details about the policy and what can be covered under the policy. In this article we will take an example of a bank and see how they are charging the premium for this policy.
Where to by House Holder Policy?
It is offered by most of the private banks in the country offers this policy. Interestingly, HDFC Ergo offers this policy and it can be purchased through online. If you want, they would send the representative to your home. Lets look into the policy details offered in their website and premium amount. HDFC Ergo offers this policy in the name of Home Insurance. The have listed the following notable features in the policy.
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 / Valuables 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.
Premium for House Holder Policy
The cost of the premium would be different from the each company. But, the difference would be not much and it depends on the features in the policy. We would analyze the HDFC Ergo premium table as per the above list of features in the policy. If you look into the above list, they have divided into the sections and based on that premium is calculated. Look into the below table for the premium details.
If you are analyzing the above table for the price of premium, it is less compared to the other insurances. The reason is that the occurrence of the event is very less so the premium amount would be less. But, it is wise idea to protect your house with this policy. I would recommend everyone who are the owners of the house think about this policy and protect your house.
This policy can be purchased through online from the HDFC Ergo website by clicking the “Buy Online” link here.
Who are offering House Holder Policy?
This policy is offered by most of the private players in the market. The above example is for purchasing the policy from the HDFC Ergo which is one of the leading private player. Apart from that, below list is leading players in the market offering the house holder policy.
Update:If you are traveling abroad for more than one month period of time, then you have to inform your insurer about your travel. This is not aware of many of the advisers. It is better to have this in the writing, just send them mail about your travel and the duration. There is no need to hear them back. It is important and one of the rules in the house holder policy.
Summary
It would be very useful write up for many of our readers. If you are aware of the house holder policy, please start understanding it and buy one for you. It would protect your dream home and your family. If you have already taken this policy, please share your experience with the readers and help them to chose the best one.
May 23, 2012
House Holder Policy