BACK GROUND OF THE INSURANCE SECTOR

Insurance is over one and one-half centuries old in India. The First general
insurance company, Titan Insurance Company Ltd., was established in1850.Life
insurance came to India from the U.K. in 1880, with the establishment of the
Oriental Life Assurance Company in Calcutta. By 1938,the insurance market was
buzzing with 176 companies--both life and non-life. In 1956, the Government of
India recognized that malpractice had entered the management of the life
insurance. Consequently, the life insurance industry was nationalized under the
Life Insurance Corporation (LIC) of India. Although efforts were made to maintain
an open market for the general insurance industry by amending the Insurance Act
of 1938 from time to time, malpractice escalated beyond control. Thus, the general
insurance industry was nationalized in 1972.

RECENT INITIATIVES
Privatization is expected to foster competition, innovations and greater awareness
on the need for buying insurance services and variety of products. The IRDA bill
Passed by the parliament was an important development in the field of Insurance
business. The IRDA Act marks an end to the monopoly of the government in the
insurance sectors by opening it up to private players. It gives priority in the
Utilization of the policyholders funds for development of society and Infrastructure
sector.

1 | Page

INTRODUCTION OF HOME INSURANCE

Home insurance, also commonly called hazard insurance or homeowners 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 ones
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. It requires that at least one of the named
insured occupies the home. The dwelling policy (DP) is similar, but used for
residences which don't qualify for various reasons, such as vacancy/nonoccupancy, seasonal/secondary residence, or age. It is a multiple line insurance,
meaning that it includes both property and liability coverage, with an indivisible
premium, meaning that a single premium is paid for all risks. Standard forms
divide coverage into several categories, and the coverage provided is typically a
percentage of Coverage A, which is. The insurance policy itself is a lengthy
contract, and names what will and what will not be paid in the case of various
events. Typically, claims due to floods , or war (whose definition typically
includes a nuclear explosion from any source) are excluded. Special insurance can
be purchased for these possibilities, including flood insurance. Insurance must be
up dated to the present and existing value at whatever inflation up or down, and an
appraisal paid by the insurance company will be added on to the policy premium .
Fire insurance will require a special premium charge, plus the addition of smoke
detectors and on site fire suppression systems to qualify .The home insurance
policy is usually a term contracta 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
2 | Page

example, if the house is situated next to a fire station, if the house is equipped with
fire sprinklers and fire alarms. Perpetual insurance, which is a type
Of home insurance without a fixed term, can also be obtained in certain areas. In
the

United States, most home buyers borrow money in the form of a mortgage

loan, and the mortgage lender always requires that the buyer purchase homeowners
insurance as a condition of the loan, in order to protect the bank if the home were
to be destroyed. Anyone with an insurable interest in the property should be listed
on the policy. In some cases the mortgagee will waive the need for the
mortgagor to carry homeowner's insurance if the value of the land exceeds the
amount of the mortgage balance. In a case like this even the total destruction of
any buildings would not affect the ability of the lender to be able to foreclose and
recover the full amount of the loan. The insurance crisis in Florida has meant that
some waterfront property owners in that state have had to make that decision due
to the high cost of premiums. See Citizens insurance.

HISTORY
The first homeowners policy parse in the United States was introduced in
September 1950, but similar policies had existed in Great Britain and certain areas
of the United States. In the late forties US Insurance law was reformed and during
this process multiple line statutes were written, allowing homeowners policies to
become legal. Prior to the 1950s, there were separate policies for the various perils
that could affect a home. A homeowner would have had to purchase separate
policies covering fire losses, theft, personal property, and the like. During the
1950s, policy forms were developed allowing the homeowner to purchase all the
insurance they needed on one complete policy. However, these policies varied by
insurance company, and were difficult to comprehend. The need for
3 | Page

standardization grew so great that a private company based in Jersey City, New
Jersey, Insurance Services Office, also known as the ISO, was formed in 1971to
provide risk information and issued a simplified homeowners policy for resell to
insurance companies. These policies have been amended over the years.

IMPORTANCE OF HOME INSURANCE

Home Insurance has evolved as one of the most enterprising sector in the realestate scenario in India. As more and more investments are made in the real estate
sector, there has been a rising demand for home finance and home insurance
simultaneously. The importance of home insurance in the protection of your house
and valuable possessions is as importance as protecting your family from any
hazards that act as threat to life and property. The policy provided by the home
insurance companies act as a guarantee that combines insurance of the home, its
contents the personal possessions of the homeowner, risk attached to burglary; as
well as liability insurance for accidents that may happen at the house like fire and
natural calamities. The extent of the risk covered however depends on the type and
content of the policy. A generally configured home insurance policy usually covers
calamities in two categories -natural and man-made. Home insurance is important
as it not only provides you with financial protection against any damage your
property might incur - to both your buildings and the contents; but it can be
considered a small amount of money you pay in lieu of the peace of mind that
brings with it and the content that your property is insured and protected against all
hazards. Though the importance of having a home insurance policy cannot be over
emphasized, one cannot predict any disasters or unavoidable incident that might
happen to one's home. Home insurance not only protects the homeowner from total
loss when disaster occurs, but also protects the home owner in the event that their
4 | Page

home is damaged by acts of God or if a person becomes injured, the home owner
will not be held solely liable for all of the damages. The home insurance policies
usually cover home under the all risks clause unless otherwise noted in an
exclusion clause. For instance, a home can be covered for fire damage, earthquake
damage, and acts of vandalism under an all risks policy, but if the policy states that
the home is not covered for deluge or say tsunami, than water damage due to the
mentioned natural calamity would not be covered. To summarize it, the home
insurance policy is important for the homeowner as it ultimately gives the home
owner a sense of security to protect his family and property against
calamities. Home insurance not only protects the homeowner from total loss when
disaster occurs, but also protects the home owner in the event that their home is
damaged by acts of God or if a person becomes injured, the home owner will not
be held solely liable for all of the damages. The home insurance policies usually
cover a home under the all risks clause unless otherwise noted in an exclusion
clause. For instance, a home can be covered for fire damage, earthquake damage,
and acts of vandalism under an all risks policy, but if the policy states that the
home is not covered for deluge or say tsunami, than water damage due to the
mentioned natural calamity would not be covered. To summarize it, the home
insurance policy is important for the homeowner as it ultimately gives the home
owner a sense of security to protect his family and property against calamities.

HOME INSURANCE IN INDIA

The Home insurance sector in India is at a nascent stage as compared to
other insurance sectors in the country. With the real estate boom at its prime in
India, home finance has become an indispensable part of real estate functioning.
Moreover, the housing finance companies (HFCs) are also playing an important
5 | Page

role in the evolvement of the home insurance company in India. Due to the new
regulations by the finance companies making home insurance mandatory
for seeking home loans in India, the home insurance sector has recently seen
massive revival in business. Industry analyst say that, if the home loans and
insurance sector continue to facilitate each others growth, then the insurance
segment is soonest to achieve a 100% growth. The latest growth curve shows the
home insurance premium touching the Rs 150 core-mark, registering a growth of
25% in the last financial year; and if the situation prevails, the trend is predicted to
continue. As the growth curve of investments in Indian real estate sector escalates,
more and more insurance companies are making their foray into the home
insurance sector. This has also initiated a trend of insurance companies from across
the globe making their foray into Indian market either as individual entity or in
joint ventures with the local existing insurance companies. Home insurance and
real estate has of late become conspicuous of the buzz it has created in the realty
industry in India. Adding to the list of leading and existing public sector companies
in the home insurance business like New India Assurance, Life Insurance
Company of India, United India Insurance, Oriental Insurance and National
Insurance Company; is a list of private insurance companies which are set to play a
pivotal role in the growth of the sector. The most thriving amongst those are mostly
joint venture companies like ICICILombard General Insurance, Bajaj Allianz
General Insurance, Tata AIG General Insurance Company Ltd, IFFCO-TOKIO and
Royal Sundaram Alliance to name few. Considering the feasibility of a largely
huge and growing market, the home insurance sectors has lately expanded its
business beyond the metros to the Tier I and II cities where real estate development
is expected to flare up in the years to come. The booming real estate sector in India
is considered to be one of the most encouraging factors in the resurgence of the
home insurance sector. However, apart from the real estate factor, the recent spate
6 | Page

of calamities that has hit the country like the earthquakes, tsunami, the consistent
flood every year in most parts of the country and the exceptional cases of 'deluge'
in Mumbai in 2005 has made people opt for home insurance like never before.

TYPES OF HOME INSURANCE

Home insurance in India has a key role to play in the protection of your house
or building structure and valuable possessions or building content. Home insurance
policy is a guarantee provided by the insurance company that combines insurance
on the home, its contents the personal possessions of the homeowner, as well as
insurance covering accidents that may happen at the house like fire and natural
calamities. The coverage of the risk however depends on the type of policy. There
are mainly two types of home insurance in India.
1. Building insurance
2. Content insurance
Buildings Insurance:
Buildings insurance is an important part of property investments. The mandatory
obligation made by the housing finance companies has strengthened the need
for insurance in conjunction with property investments. Insuring the building
or building structure is important since it protects you against inevitable losses in
case your building is destructed and debilitated in any natural or man-made
calamities. The housing finance companies are insisting on building insurance so
that in the event of a disaster it can be repaired or rebuilt, as lenders don't want to
be left without security for their loan. A home insurance policy should cover
expenditures rebuild your home in the event of it being totally destroyed or
damaged to the point that complete rebuilding is necessary (in eventualities like
earthquake,
7 | Page

fired).Different

home

insurance

companies

have

different

specifications for policy coverage. It is recommended that you check the terms and
conditions of the policy. Home insurance companies in India mostly have home
insurance plans that insure the building structure of your home for its
reconstruction value. This is the cost incurred to reconstruct the home if it is
damaged and not for its market value such as the cost of land etc. Sum insured is
calculated by multiplying the built up area of your home with the construction rate
per sq. feet Home insurance plan for buildings are usually meted out on conditions
as per the policy terms arising out of conditions like

Fire, Lightening, explosion of gas in domestic appliance

Bursting and overflowing of water tanks, apparatus or pipes.
Riot, Strike, Malicious or Terrorist Act
Flood, Inundation, Storm, Typhoon, Hurricane, Tornado or Cyclone
Damage due to earthquake, subsidence and Landslide (including

Rockslide).
Damage caused by Aircraft & Impact damage
Third party liability and personal accident.
Content Insurance:
Content insurance may be considered optional but with the threat of burglaries,
natural disasters and fire, content insurance covers are rising in demand. Contents
insurance for home insurance plans includes protection to movable goods,
possessions or contents in the house; anything that is not a fixed parts of
your home, for example your appliances, electronic goods, furniture and clothing.
Similarly as the modalities adopted in building insurance, different home insurance
companies in India have different policies for content insurance. Most companies
comply with insurance plans where a value equivalent to the market value
of household contents i.e. the value for which this used item could be bought or
sold in the market is covered as insurance. The insured amount given against the
8 | Page

perils for building or structure and its contents is assessed either on 'reinstatement
value basis -which is the value for replacing the item with a new item of same
type and make; or on 'market value' basis -which is the reinstatement value less
depreciation depending on the age of the item. Content insurance offers protection
against various perils including:

Fires
Storms/flooding
Explosions
Theft and vandalism
Valuables such as jewellery, cameras and watches against all risks,

Cover against all kinds of accidental breakage of plate glass fixed in doors and
window frames. Loss/damage to domestic appliances due to electrical and
mechanical breakdown .Home insurance can be availed for both building and
content combined. However, most home insurance plans in India excludes
underinsurance of the property value, willful destruction of property, loss, damage
or destruction caused by war perils, wear and tear and atmospheric conditions etc.,
damage due to an act of terrorism(unless specifically covered) and losses or
damages incurred when premises are unoccupied beyond 60 consecutive days.

HOME CLAIM PROCEDURE

1. Inform the call center with policy detail
2. Provide relevant information, which includes your policy and other details
regarding your claim. Consequently, your claim request is authenticated and
is escalated to the company's claims department.

9 | Page

3. Company's claims department validates and registers the request. They

appoint a surveyor within 48 hours.
4. The insured submits all the relevant documents to the surveyor. The
surveyor submits the Final Survey Report (FSR) along with the documents
within 7 days.
5. If surveyor is not appointed, the company's claims department sends a
letter of requirement for submitting documents to the insured within 24
hours of claim intimation.
6. On receipt of documents, the claims department processes the claim within
7days. On approval of the claim, a letter is send to the insured giving the
approved amount of settlement along with the discharge voucher.
7. Payment cheque is released on receipt of the signed discharge voucher.

CLAIMS COVERED UNDER HOME INSURANCE

Insurance claim amount is always something creeping up on the mind of both
insurer and the insurance company. It is more evident in case when there is a
possibility of you filing a claim to recover the amount for that claim. If you
provide sufficient proof and necessary documents for your home insurance claim,
there is a fair chance you can get the amount by the Home Insurance company
or provider. Also, submitting a claim on your home policy is a relatively quite
simple process. The steps involve contacting your agent, filling out a claim form
and waiting for an appointed arbiter to verify the facts and judge the authenticity of
10 | P a g e

the damage. If the damage is really worth notice, it's a matter of few days to get the
claimed amount through check. Most claims are handled quickly. Sometimes the
claim process can really be time taking and frustrating. Also keep in mind that
most insurance providers don't enjoy the idea of two or three claims in a short span
of time and you stand almost certain chance of getting cancellation of these claims.
Try to stay away from high risks, so you should be sure to make only those claims
that are absolutely necessary. Or, if you are sure about your rights to claim and
corresponding damage or loss, just go full throttle to register a claim. Only
remember that there can sometimes be unpleasant repercussions. Here are some
general tips for handling auto and home insurance claims:
Know your policy.
Stake your claim quickly.
Avoid using the word "lawyer."
Keep a copy of the police report.
Get an estimate or two.

DOCUMENTS REQUIRED
Documents are the most valid and appropriate proof for your home
insurance claims. Always keep your documents in place and ready both
before you need to make a claim and when you need to make one. It is
always advisable to save the receipts for items you buy. This will give the
11 | P a g e

indication and estimation of the total cost of items and damage claim amount
accordingly. Photographs and/or videotapes of your home (both in pre- and
post-disaster form) can also be beneficial. These will help you establish an
inventory of your belongings should the need arise. Always save photos or
videos of the damage before you begin cleaning up.List of Documents
Required
1. Duly completed and signed claim form2.
2. Xerox copy of policy3.
3. Copy of FIR 4.
4. Final Report from police5.
5. Copy of all invoices, price lists, repair estimate

TYPES OF POLICIES AS PER ISO

Currently, the ISO has seven standardized homeowners insurance forms in general
use:
HO1:
Basic Homeowner Policy A basic policy form that provides coverage on a home
against 11 listed perils; contents are generally included in this type of coverage, but
must be explicitly enumerated. The perils include fire or lightning, windstorm or
12 | P a g e

hail, vandalism or malicious mischief, theft, damage from vehicles and aircraft,
explosion riot or civil commotion, glass breakage, smoke, volcanic eruption, and
personal liability. Exceptions include floods, earthquakes.
HO2:
Broad Homeowner Policy A more advanced form that provides coverage on a
home against 17 listed perils (including all 11 on the HO1). The coverage is
usually a "named perils" policy, which lists the events that would be covered.
HO3:
All Risk Homeowner Policy The typical, most comprehensive form used for
single-family homes. The policy provides "all risk" coverage on the home with
some perils excluded, such as earthquake and flood. Contents are covered on a
named peril basis.
HO4:
Renter's Insurance The Tenants form is for renters. It covers personal property
against the same perils as the HO2.
HO6:
Condominium policy the form for condominium owners.
HO8:
Older Houses The Modified Coverage form is for the owner-occupied older home
whose replacement cost far exceeds the propertys market value.

COVERAGE RATES
13 | P a g e

According a 1998 NAIC (National Association Of Investors Corporation)

report,83% of homes were covered by owner-occupied homeowners policies. Of
these, 87% had the HO3 Special and 9% had the more expensive HO5
Comprehensive. Both of these policies are "all risks" or "open perils", meaning that
they cover all perils except those specifically excluded. 3% were the HO2 Broad,
which covers only specific named perils. Others include the HO1 Basic and the
HO8 Modified, which is the most limited in its coverage. HO8, also known as
older home insurance, is likely to pay only actual cash value for damages rather
than replacement. The remaining 13% of home insurance policies were covered by
renters or condominium insurance. Two-thirds of these had the HO-4 Contents
Broad form, also known as renters insurance, which covers the contents of an
apartment not specifically covered in the blanket policy written for the complex.
This policy can also cover liabilities arising from accidents and intentional injuries
for guests as well as passers-by up to 150' of the domicile. Common coverage
areas are events such as lightning, riot, aircraft, explosion, vandalism, smoke, theft,
windstorm or hail, falling objects, volcanic eruption, snow, sleet, and weight of
ice.The remainder had the HO-6 Unit-Owners policy, also known as a
condominium insurance, which is designed for the owners of condos and includes
coverage for the part of the building owned by the insured and for the property
housed therein. Designed to span the gap between the coverage provided by the
blanket policy written for the entire neighborhood or building and the personal
property inside the home. The liability coverage may cover incidents up to 150 feet
from the insured property, all valuables within the home from theft, fire or water
damage or other forms of loss. The Associations Bylaws determine the total
amount of insurance necessary. In addition, about 2.4% of homes were covered by
a dwelling fire policy which covers property damage to a structure and is typically
sold to noncommercial owners of rented houses. It may also cover the owner's
14 | P a g e

personal property (such as appliances and furnishings). The owner's liability is

generally extended from their own primary home insurance, and does not comprise
part of the Dwelling Fire policy.

CLASSES OF COVERAGE
For each policy, there are typically six classifications of coverage. These are based
on standard Insurance Services Office or American Association of Insurance
Services forms.
Section I Property Coverage
Coverage A - Dwelling
Covers the value of the dwelling itself (not including the land). Typically,
coinsurance clause states that as long as the dwelling is insured to 80% of actual
value, it will be replaced. This is in place to give a buffer against inflation. HO-4
(renter's insurance) typically has no Coverage A, although it has additional
coverage for improvements.
Coverage B - Other Structures
Covers other structure around the property which are not used for business, except
as a private garage. Typically limited at 10% of the Coverage A.
Coverage C |-Personal Property
Covers personal property, with limits for the theft and loss of particular classes of
items (e.g., $200 for money, banknotes, bullion, coins, medals, etc). Typically 50 to
70% of coverage A is required for contents, which means that consumers may pay
for much more insurance than necessary. This has led to some calls for more
choices.
Coverage D - Loss of Use/Additional Living Expenses

15 | P a g e

Covers expenses associated with additional living expenses (i.e. rental expenses)
and fair rental value, if part of the residence was rented, however only the rental
income for the actual rent of the space not services provided such as utilities.

ADDITIONAL COVERAGES
Covers a variety of expenses such as debris removal, reasonable repairs, damage to
trees and shrubs for certain named perils (excluding the most common causes of
damage, wind and ice), fire department changes, removal of property, credit card /
identity theft charges, loss assessment, collapse, landlords furnishing, and some
building additions. These vary depending upon the form.

EXCLUSIONS
In an open perils policy, specific exclusions will be stated in this section. These
generally include earth movement, water damage, power failure, neglect, war,
nuclear hazard, intentional loss, and concurrent causation (for HO-3).

THREE WAYS TO INSURE HOME.

When you insure your home, you should insure your home for the total amount it
would cost to rebuild your home if it were destroyed. If you don't have sufficient
insurance, your insurance company may only pay a portion of the cost of replacing
or repairing damaged items. There are three ways to insure the structure of your
home:1.

16 | P a g e

Replacement Cost: Insurance that pays the policyholder the cost of replacing the
damaged property without deduction for depreciation, but limited to a maximum
dollar amount.
2. Guaranteed Replacement Cost:
Insurance that pays the full cost of replacing damaged property, without a
deduction for depreciation and without a dollar limit. This coverage is not
available in all states and some companys limit the coverage to 120 percent of
the cost of rebuilding your home. This gives you protection against such things
as a sudden increase in construction costs due to a shortage of building
materials.
3. Actual Cash Value:
Insurance under which the policyholder receives an amount equal to the
replacement value of damaged property minus an allowance for depreciation.
Unless a homeowners policy specifies that property is covered for its
replacement value, the coverage is for actual cash value. For a quick estimate
of the amount to rebuild your home, multiply the local building costs per
square foot by the total square footage of your house. To find out the building
rates in your area, consult your local builders association or real-estate
appraiser.
Factors that will determine the cost to rebuild your home:
1. Local construction costs
2. The square footage of the structure
3. The type of exterior wall construction: frame, masonry (brick or stone)
or veneer

17 | P a g e

4. The style of the house (ranch, colonial)

5. The number of bathrooms and other rooms
6. The type of roof
7. Attached garages, fireplaces, exterior trim and other special features like
arched windows.
Also be sure to check the value of your insurance policy against rising local
building costs each year. Ask your insurance agent or company representative
about adding an Inflation Guard Clause to your policy. This automatically adjusts
the dwelling limit when you renew your policy to reflect current construction costs
in your area. Also be sure to increase the limit of your policy if you make
improvements or additions to your house.

COMPANIES PROVIDING HOME INSURANCE

ICICI Home Insurance

18 | P a g e

It is imperative that you secure your home from natural and man-made
catastrophes. Before Applying for Home Insurance you should know about
Importance of Home Insurance. Our Home Insurance Plan ensures you peace
of mind by protecting the structure and the contents of your home.
Policy Details & Coverage You can choose to buy insurance for only the building
(structure) of your home, or only the contents (belongings) or both. The policy
covers the losses to the structure and contents of your home due to any natural and
man-made calamities. The calamities covered are:
Fire
Riot, strike & malicious damage
Explosion & implosion
Earthquake
Lightning

Storm, cyclone, tempest, tornado, hurricane, flood & inundation.

Damage due to impact by vehicles
Missile testing operation
Subsidence, landslides and rockslides
Leakage from automatic Sprinkler installations
Bursting and/or overflowing of water tanks, apparatus and pipes
Burglary covers (only for contents):
The contents of your home are also covered against loss due to burglary
or an attempted burglary. It also covers loss of jewellery, silver articles and

19 | P a g e

precious stones kept under lock and key, up to 25% of the total content sum
insured or Rs. 1 Lac, whichever is lower.
Additional expenses of rent for alternative accommodation - If you are
forced to shift into an alternative accommodation because your home is
destroyed or damaged by any insured peril, the policy will cover you against
the additional rent.
The maximum coverage is up to Rs. 1, 00,000 for up to 6 months. The
cover is available only if you are insuring the structure of your home.
Key Benefits:
a. Digitally signed policy is available 24X7 online, customer can take
prints instantly. The hard copy of the policy is couriered the same day
(or next day if customer buys after 6 PM) and will reach him/her
within 2-3 working days.
b. Avail 15% discount on a 3 years home insurance policy and 25%
discount on 5 years policy.
c. Optional covers available - Terrorism and Additional expenses of rent
for alternative accommodation.
Sum Insured:
How to calculate the sum insured for:
Home Structure:
The home insurance policy insures the structure of your home for its
reconstruction value (and not for market value). Reconstruction value is
defined as the cost incurred to reconstruct the home if it is damaged. On
the other hand market value is a combination of cost of land, demand &
supply scenario, etc.

20 | P a g e

 Sum insured is calculated by multiplying the built up area of your home

with the construction rate per sq. feet, e.g. if your built up area of your
home is1000 sq. feet and the construction rate is Rs. 800 per sq. feet, the
sum insured for your home structure is Rs. 8,00,000.
We recommend the rate of construction for your location when you are
buying online. However, this value can be revised appropriately if
expensive material - like marble flooring, etc. - has been used in
construction. If your home has lawn / garden surrounded by a perimeter
wall, the construction rate can be revised to include the cost of
construction of this wall in home structure sum insured.
Tata AIG General Insurance Company Limited

HOME INSURANCE
"Home sweet Home" - a destination, any individual or a family feels very close to
the heart. It is an investment of one's lifetime savings, emotional dreams and
aspirations to realize their ideal home. Home signifies a set of emotions for any
individual, be it pride, ownership, stability or be it a sense of belonging. It echoes
21 | P a g e

the owners' sentiments "It's my house. After all, one's Home including its contents
is the single most important and expensive asset that we have created for ourselves.
We have learnt to value life and health sufficiently to understand the importance
of insuring it. But when it comes to applying the same logic to our home (around
which our lives revolve) most of us suffers a blind spot. It is only when a calamity
or catastrophe strikes that we feel helpless.
HOME SECURE BENEFITS
.Home Insurance in India provides exactly the care one needs at such times - to
safeguard against unforeseen eventualities and to preserve one's lifestyle and tattoo
at an affordable price. You can protect your priceless investment for very little
money. Assuming you have possessions worth Rs. 300,000 in your house, you can
insure those possessions for as little as Rs. 3 a day - for Fire, Natural Hazards
(Flood, Earthquake etc.) and Burglary & Theft.
The Oriental Insurance Co. Ltd.

Householders Insurance Policy

Brief Description:
The House holder's Insurance Policy is a comprehensive shelter that protects your
house and the various contents in it against a variety of risks. It is a single policy
that takes care of a number of contingencies. The policy is divided into 10 sections.
Sec 1(B) and a minimum of any 2 other sections are compulsory.

22 | P a g e

Section 1:
Fire and Allied Perils.
Section 2:
Burglary.
Section 3:
All risks.
Section 4:
Plate Glass.
Section 5:
Breakdown of domestic appliances.
Section 6:
T.V. Set.
Section 7:
Pedal Cycles.
Section 8:
Baggage Insurance.
Section 9:
Personal Accident.
Section 10:
Public Liability
Covered Risks:
Buildings of class 'A' construction, Plate Glass, Breakdown of domestic
appliances, T.V. Set, Pedal Cycles, Baggage Insurance, Personal Accident, Public
Liability.

23 | P a g e

BAJAJ ALLIANZ

Householders
Your home is our most valued possession, a haven of safety. But is it really as safe
as we would like to believe? We at Bajaj Allianz realize your need to make
your home as secure in reality as it is in your mind. This is why we bring to you the
House- Holders' Insurance policy designed to cover various risks and
contingencies faced by householders under a single policy. It provides protection
for property and interests of the insured and his family members who permanently
reside with the insured. A home insurance(householder's insurance), protects not
just your flat but also your domestic and electronic appliances.
Unique Features

Very competitive premium rates.

First loss basis option for burglary and jewelry.
Flexible rating for personal accident of the insured

24 | P a g e

 No valuation certificate required for jewelry up to Rs.2 laces.

Assembled computers can also be covered under EEI.

Benefits:
No strain on pockets of insured.
saving on cost.
Customized cover can be opted by the insured.
Save on time while proposing.
Same policy addressing varied needs.
Advantages:

Single Proposal form.

Complete coverage at reduced premium.
Client needs being addressed.
Simple and quick documentation.
Related items got covered under respective sections .
25 | P a g e

IFFCO-TOKIO General Insurance

A Complete Protector
Our Home Siddha Insurance Policy gives complete protection to your home
against a wide range of risks and perils. It is a simple Home Insurance Policy
wherein there are various categories of Sum Insured and you may opt for the
category most suitable to you depending upon the extent of risk perceived and total
value of your assets. The Sum Insured under Section 1 & 2 represents the First
Loss limit which should be within 50% of the actual Market Value of the property
at risk, below which underinsurance condition will be applicable. The other
Sections are covered on Full Value basis - Market Value for Section 5 and
Reinstatement Value for Section3 & 6. Sections 5 and 6 are optional. Either on
both of them can be deleted from the cover taken, in case they are not relevant to
you.
Coverage under Home Suvidha:
Fire and Allied Perils (Contents): Contents of your premises are covered against
fire, explosion, bursting/ overflowing of water tanks, riots, strike and malicious
damage, earthquake, flood, cyclone, landslide etc.

26 | P a g e

 Burglary and other Perils (Contents): Contents of your premises are covered
against housebreaking, burglary, robbery or dacoit and also against impact
damages by falling trees/electric poles/lamp posts, breakage or collapse
of television or radio aerials/satellite dishes and damage by civic authorities
in the prevention of fire.
Television/Video Equipment: This Section covers loss or damage to
your television/ video equipment against fire, theft, accidental damage and
breakdown.
Personal Accident: This section covers you and your named family members
against accidental bodily injury leading to death or disablement
(either permanent total or permanent partial).
Fire and Allied Perils (Building): This Section covers the residential
building, if owned by you against perils mentioned under the Fire and Allied
Perils (Contents) Section.
Personal Computer: This Section covers loss or damage to your personal
computer against fire, theft, accidental damage and breakdown.
Who can apply for this policy?
This Policy is suitable for you as a householder, whether you are a landlord
or a tenant, whether you reside in an independent house or in
afloat/apartment, whether the building is single storied or is a high rise, since
each of the alternatives above would imply different risk exposures which
can be covered under this policy.

27 | P a g e

Quality Buildings Insurance from Royal Sundaram

Home Insurance
Home shield Classic is a comprehensive package of insurance benefits designed to
cover the buildings and contents of your home against all possible kinds of perils
such as fire, earthquake, terrorism, storm, flood, cyclone, burglary and breakdown
of appliances. Your building cover can be arranged in conjunction with
your contents cover or on its own.
Home shield Classic - Coverage
When it comes to contents of your home, Royal Sundaram-s Home shield Classic
will give you complete peace of mind by covering the contents against a range
of risks. We also cover building insurance.
Three levels of cover to choose from to suit your lifestyle.

o You have the option of insuring your building against fire and allied perils.
o You have an option of payment through credit card with automatic renewal
facility.

28 | P a g e

o Assured Claims service: Claims will be settled within 10 days of receipt

of documents.
o We provide you 15 days to review your policy document. If you are not
completely satisfied, simply return your policy for cancellation and
RoyalSundaram will refund the entire premium paid provided no claim has
been made.
Home shield Classic - Features
Simple documentation & customer-friendly package.
Comprehensive package covering fire, earthquake, terrorism, storm,
Option to cover building against Fire & allied perils @ Rs.78.56/- per lac.
Covers

household

contents,

appliances,

jewellery

&

breakdown

of appliances.
3 levels of cover to choose from: Silver, Gold & Platinum.
Assured Claims service: Claims will be settled within 10 days of receipt
of documents. You have an option of payment through credit card with
automatic renewalfacility.Option of Add-on covers for Computer, Airconditioner, Air Cooler.

29 | P a g e

The New India Assurance Co. Ltd.

Householders Policy
Highlights:
This is a package policy specially designed to meet the insurance requirements of
a householder by combining under a single policy, a number of our standard
policies usually taken by householders. Discount in premium is offered depending
upon the number of sections of the policy, opted for, by the proposer.
Scope
The policy comprises of 10 sections as given here under
Section I -Fire & Allied Peril
Coverage for building
Covers contents of the dwelling belonging to the proposer and his/her family
members permanently residing with him/her.
Allied Perils:
Fire, Lightening, Explosion of gas in domestic appliances.
Bursting and overflowing of water tanks, apparatus or pipes.
Damage caused by Aircraft , Riot, Strike, Malicious or Terrorist Act
Earthquake, Fire and/or Shock, subsidence and Landslide (including
Rockslide) damage
Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tomzato
or Cyclone, Impact damage
Section II
Burglary & House Breaking including larceny and theft. Covers contents of
the dwelling against loss due to burglary, house breaking, larceny or theft.
30 | P a g e

Section III
All Risks (Jewellery & Valuables)Covers loss or damage to your jewellery
and valuables by accident or misfortune whilst kept, worn or carried
anywhere in India subject to the value declared in the schedule.
Section IV
Plate Glass Loss or damage to fixed plate glass in the insured premises by
accidental breakage subject to limit of sum insured.
Section V
Breakdown of Domestic appliancesCovers domestic appliances against
unforeseen and sudden physical damage due to mechanical or electrical
breakdown.
Section VI
T.V. Set including VCP/VCR (ALL RISKS)Covers loss or damage to T.V.
Set including VCP/VCR by fire and allied perils, burglary, house breaking or
theft, breakage due to accidental external means, mechanical or electrical
breakdown. Any legal liability arising out of bodily injury or accidental
death of any person other than insured's family members or employee as also
damage to property not belonging to or in the custody of insured , caused by
use of the T.V. Set is also covered up to a limit of Rs.25,000/-.
Section VII
Pedal Cycles (All Risks) Covers loss or damage to pedal cycles by :Fire & allied perils, Burglary, housebreaking, theft, Accidental external
means
Third party personal injury or Third party property damage for Rs.10,000/Section VII
Baggage Insurance Covers loss or damage to insured's accompanied
baggage by accident or misfortune whilst the insured is traveling on tour or
holiday anywhere in India.
Section IX-

31 | P a g e

Public Accident Covers Death or bodily injury by accidental, violent,

external and visible means to the insured person named in the schedule and
subject to limits specified therein.

Section X
Public liability. Covers Insured's legal liability for bodily injury or loss of or
damage to property of third party limited to amount specified in the schedule and
workmens compensation liability to domestic servants engaged in insured's
premises. It is compulsory to opt for Section IB of the policy. A minimum of three
sections including Section IB have to be taken for issuance of this policy.
HOW TO SELECT SUM INSURED
For the insurance of household items, it would be necessary to group the items in
abroad category like furniture, clothing, linen, utensils, crockery etc. and give
value equivalent to the market value i.e. the value for which this used item could
be bought or sold in the market. Sections I A & B, II, III, IV, VI, VII & VIIIshould
be insured on market value basis as described above. It is a condition of Section V
i.e. breakdown of domestic appliances, that the sum insured should represent the
current replacement value of a similar item. For e.g. to insure 165 ltr.Godrej fridge
which is 3 years old, the sum insured should be equivalent to the cost price of a
new 165 liter. Godrej fridge. However, the claim amount payable would be the
amount required to bring the damaged item to the same condition as it was prior to
the damage subject to the adequacy of the sum insured. The sum insured under
section IX i.e. Personal Accident should not exceed 72 months salary from gainful
employment.
32 | P a g e

HOME INSURANCE CLAIM

In case of any incident leading to a valid claim under the policy, following steps
should be taken:
Take necessary steps to minimize the loss/damage.
In case of fire, inform fire brigade immediately.
In case of theft, larceny or burglary inform the police immediately alongwith
a list of items stolen and their approximate value.
Inform insurance company by phone or fax and in writing. Extend full cooperation to the surveyor appointed by the insurance Co. and provide necessary
documents to the substantiate the loss. A claim form issued by the company is also
to be submitted.
IN case any rights of recovery exist against any other party responsible for the loss,
your rights of recovery have to be subrogated to the insurance company on
payment of claim.

CALCULATION OF HOME INSURANCE PREMIUM OR AMOUNT.

The factors to be kept in mind while calculating the insurance premium and
accepting the home insurance quote being offered by the home insurance company
are:
Area of the House (calculated in sq.ft.)
Location and neighborhood
Approximate rate of construction (calculated in Rs. per sq.)
33 | P a g e

 Permanent construction on the land

The time period offered for the insurance premium (monthly, quarterly or six
monthly depending upon the insurance amount) Property more than 50years
old is not covered in home insurance
The insurance policy offered is standard or flexi covering .

TEN WAYS TO CUT THE COST OF YOUR

HOMEOWNER'SINSURANCE
Here are ten ways to minimize the cost of your homeowner's insurance.
1. RAISE YOUR HOMEOWNER'S INSURANCE DEDUCTIBLE
Your deductible is the amount of risk you agree to accept before the insurance
company starts paying on a claim. With the cost of homeowner's insurance
escalating, it no longer makes sense to let the insurance company assume all the
risk. If you have a low deductible of $50 to $100, consider raising it to at least$500
to $1,000. You could save up to 25% on your premiums. Some companies are
offering deductibles equal to 1% of the insured value of your home ($1,000
deductible on a $100,000 home). It that seems like a lot of money to pay in the
event of a claim, consider this: the trends in homeowners insurance are for
insurance companies to severely penalize customers who file one or more small
claims. Often the premiums are jacked way up or the policy is cancelled, and when
the customer looks elsewhere for coverage, they may find it costs them three times
what they were paying. We should change our perception that insurance of any
34 | P a g e

type is intended to cover all of our expenses when we incur a claim. Those days are
over. Think of insurance as risk sharing. How much risk are you willing to
assume?
2.COMBINE YOUR HOMEOWNER'S INSURANCE AND AUTO INSURANCE
POLICIES
Consider buying your homeowner's and auto insurance policies from accompany
that offers both. Some companies offer discounts of 5 to 15% if you buy both types
of coverage from them. Check around and make sure the price is lower than buying
the two policies from two different companies before making this move.
3.ASK ABOUT OTHER HOMEOWNER'S INSURANCE DISCOUNTS
Make sure you're receiving all the discounts for which you're eligible.
For example, discounts exist for smoke detectors, deadbolt locks, security or fire
alarm systems, fire extinguishers in the home, etc. If you're over 55 and retired,
you may qualify for an additional 10% discount.
4. DONT BUY HOMEOWNERS INSURANCE COVERAGE YOU DON'T
NEED
It makes no sense to buy insurance to protect yourself against risks you are
unlikely to encounter; for example, earthquake coverage in a non-earthquake zone,
or a jewelry floater to your policy if you don't own expensive jewelry
5. KNOW WHAT YOUR HOMEOWNER'S INSURANCE POLICY COVERS
Your home is your biggest investment. Make sure it's adequately protected from
risks you cannot afford to cover yourself and that it covers any home
improvements you've made, major purchases, and increased costs of rebuilding.
6. MAKE YOUR HOME A BETTER INSURANCE RISK
Ask your insurance agent what you can do to make your home less expensive
tonsure. Making changes that reduce the risk of damage in windstorms and

35 | P a g e

other natural disasters is one example. Another is updating old wiring or heating
systems, which may reduce your risk of fires and therefore reduce your premiums.
7. KEEP YOUR INSURANCE COVERAGES UP TO DATE
Once a year, before your homeowner's insurance policy is due to renew, dig out
the current policy, read through all the details, and call your insurance agent to
discuss any changes in your situation that occurred during the year.
8. AVOID RISKS THAT INSURERS SHUN
Insurers are shying away from some risks. For instance, owning certain types
of dogs (Rottweilers, Doberman Pinschers, Pit Bulls), can limit or void
your policy. Owning a swimming pool or a trampoline can increase your cost
of coverage. Read all the fine print in your policy under the "Conditions and
overages" sections so you know all the things that are excluded from coverage.
You may opt to buy additional coverage to protect yourself from certain
exposures.
9. IMPROVE YOUR CREDIT SCORE
Insurance companies are increasingly using credit information to price insurance
policies. Don't have too many open credit accounts, don't charge close to the limits
on your credit cards, and pay all your bills on time to keep your credit score
healthy.
10. SHOP AROUND FOR HOMEOWNER'S INSURANCE
Shop around for homeowner's insurance rates but keep in mind that you may be
receiving a longevity discount if you've been with your current insurer for several
years. Typical discounts are 5% if you've been with the company for three to five
years, and 10% for six years or more. Get quotes from three agents, and take any
longevity discounts with your current insurer into consideration when you compare
prices.

36 | P a g e

QUESTIONAIRE FOR SURVEY

FOR MANAGER

What is the procedure for application of Home Insurance?

What are the types of Home Insurance?
What is the eligibility criterion?
What are the documents required for taking Home Insurance?
What are the terms and conditions for the following:(I)Premium (II) Claim
(III) Defaulters
What are the damages covered under the Home Insurance policy?

FOR CUSTOMERS

Whether you know about Home insurance?

Have you taken this policy from any agent or have you visited company
personally?
37 | P a g e

 Does Company provide knowledge on entire product range in its portfolio?

What is your opinion regarding private companies? Whether they provide
same safety and security to public as government companies?
Are you satisfied with the services provided by them?
What factors do you considered while selecting ICICI Lombard as An
insurance Company?
ANALYSIS OF SURVEY OF ICICI LOMBARD
PROCEDURE FOR APPLICATION OF HOME INSURANCE:
After doing survey of ICICI Lombard I found that procedure for application of
Home Insurance is filling a proposal form or through internet.
TYPES OF HOME INSURANCE:
ICICI Lombard provides only single home insurance product (Home Safe +
Product)
ELIGIBILITYCRITERIA:

ELIGIBILITYCRITERIAICICI

LOMBARDMINIMUM 20 YEARSMAXIMUM 50 YEARSPOLICY TER

M 36 MONTHS
ELIGIBILITYCRITER

ICICI LOMBARD

IA
MINIUM

20 years

MAXIMUM

50 years

POLICY TERM

36 mths

38 | P a g e

DAMAGES COVERED:
ICICI Lombard provide following coverages:
Fire and Special Perils, Audio & Audio Visual Appliances Burglary &
Theft, Public Liability Baggage Loss, Purchase Protection Breakdown of Domestic
Appliances Personal Accident, Rent for alternative accommodation
TERMS AND CONDITIONS :
(A) Premium: In case of premium customers have to pay annually only. Up to
1Lakh it is 141 Rs. There premium is based on their value of sum assured.
(B) Claim: In case of claim customers have to submit the documents Such as it
should be registered under municipality Corporation, FIR, etc.
C) Defaulter: In case of default by customer the policies of them are cancelled.
DOCUMENTS: Customers have to fill only proposal form of the company
which is provided by them and this policy is based on the utmost good faith
principle of insurance.

39 | P a g e

CUSTOMER

NO. OF CUSTOMER VISITED

(10)

CUSTOMERS HAVING
HOMEINSURANCE POLICY (3)

CUSTOMERS NOT HAVINGHOME

INSURANCE POLICY (7)

After detail analysis of 10 customers I found that all the customers are aware about
insurance services. As we know that ICICI is the no 2 private sector organization in
INDIA. So according to those 10 customers ICICIS brand name is the most
important factor for taking insurance policy. Out of 10 customers only 3 customers
have taken home insurance policy from ICICI Lombard whereas remaining 7
customers are not aware about home insurance as a concept. Those 3 customers
have taken the policy from agent and for further procedure they visited personally
to the company. Agents provide entire knowledge of product such as some assured,
40 | P a g e

features of policy, premium payable, product coverage, eligibility etc. When I

spoke with 10 customers I found that they give same preference to the private
organization as well as public organization. The services provided by ICICIare as
follows:24 x 7 service, Toll free nos, online application and Banc assurance. All
this factors satisfy the customers need.

Types of home insurance

There are two types of home insurance: buildings insurance and contents
insurance. These policies protect you against very different things, and many
homeowners will need to take out both types of cover.
Buildings insurance
This insures the fabric of your property your walls, roof, and foundations, for
example against damage caused by events such as flooding, storms, fire or
subsidence. Basically, anything you wouldnt (or couldnt) take with you if you
moved home will be covered by a buildings policy. This would include windows,
baths and showers, built-in wardrobes, as well as things outside your home such as
driveways, garden sheds and gates. Your policy should offer sufficient cover to
completely rebuild your home if necessary for example if it were destroyed by a
41 | P a g e

fire or earthquake. When you apply for a policy, youll be asked for your homes
rebuild value: but dont assume this is the same as its open-market value if you
were to sell the property. The rebuild value depends on the cost of materials and
labour, whereas the market value also takes into account intangible factors such as
proximity to schools or transport links, and what your neighborhood is like. When
you apply for buildings insurance with a price-comparison service, you will be able
to use an online rebuilding cost calculator to help you get the right level of
insurance. Some buildings policies will give you emergency cover, with a 24-hour
hotline to call in case of burst pipes or a broken-down boiler, but you may have to
pay extra for this service.
Who needs it?
If you own a house, you need buildings insurance. If you have a mortgage on the
house, your lender will probably make it a requirement of the loan. Given that a
property is the largest investment most of us will make, the consequences of being
uninsured or underinsured would be potentially catastrophic if the house were
destroyed or severely damaged in a natural disaster.
Who doesnt need it?
If youre renting your home, it is your landlords responsibility to have buildings
insurance, not yours. You could check your landlord is covered if you want to have
the peace of mind that an insurer will pay out to quickly deal with any structural
problems. And if you live in a block of flats, it is more likely that there will be a
policy to cover all the flats rather than each individual apartment. This could be
organized by the freeholder or property management company, with residents
paying their share of the premium through an annual service charge.

42 | P a g e

Flats are rarely covered individually because this leaves any communal areas such
as halls, stairways and gardens unprotected.
Contents insurance
This covers your possessions at home against events such as burglary, flooding or
fire. You can even get protection against accidental damage, although this is likely
to result in higher premiums. As a rule of thumb, if an item is something you could
take with you when you moved, it should be covered under a contents policy. One
of the most important aspects of buying a contents policy is getting the right level
of cover. Insurers will ask for the total value of possessions covered under the
policy: this means you should go from room to room and work out the value of
everything you own and would want replaced if they were destroyed in a fire or
flood, for example. If you are found to be underinsured, your insurer can reduce
your payout proportionately. Bear in mind also that most policies will have an
upper value limit for expensive items such as jewellery or electrical equipment.
This could be 1,000, which means applicants need to declare any items worth
more than this and pay extra to make sure they are insured. If you buy any
expensive items, you should tell your insurer as soon as possible to make sure they
are covered. The same applies if the total value of what you own increases
substantially, as it might after you get married and receive gifts.
Legal expenses cover
This optional extra on a contents policy means you can claim the costs of taking
legal action if you were injured in an accident or unfairly dismissed from work, for
example: the action doesnt have to be related to your home, but it could cover you
if your dog attacks a postman, say. It would also give you protection in disputes
with tradesmen. There will be an upper limit on what you can claim, say 50,000
43 | P a g e

or 100,000 per case, and you will usually but not always have to pay extra
for legal expenses cover.
Who needs contents insurance?
Most people should consider taking out a contents policy if they own anything of
value. Even if you are in rented accommodation, your landlords insurance will
only cover the building and his own property, such as washing machines or fridges.
Is it essential to have home insurance?
If youre a homeowner, most mortgage lenders insist you have buildings cover in
place to protect their investment. You dont usually need buildings cover if youre
renting, but you may want contents insurance to help cover the cost of replacing
your things if you suffer a loss. You can find out more about how your home
insurance is calculated in our guide.
Why would I need to take out a joint home insurance policy?
Adding a joint policyholder allows the other person to make a claim, so its not
only you who can deal with communications with your insurer. Under some
circumstances it can also lower your premium.
What is accidental damage cover and do I need it?
Most insurers define accidental damage as an unintentional one-off incident that
harms your property or its contents. Most standard policies cover key items like
home entertainment, but there may be varying exclusions depending on your
insurer. Your need depends on your circumstances many accidental damage
claims come from people with young children. Its also important to know whats
covered under your standard policy. Checking the small print is the best way to
make sure youve got adequate cover.
44 | P a g e

Do I have to get my buildings insurance through my mortgage provider?

No - unless its a specific requirement of your mortgage contract. By being the
only insurer offering you buildings cover when youre arranging your mortgage,
theres less need for them to competitively price your insurance policy. You can
often save money by shopping around with a price comparison site to get a range
of quotes from a number of insurers.
What should I include in my contents cover?
As a rule of thumb, anything youd take with you if you moved house should be
included on your contents policy including items like curtains and carpets. Its
worth taking the time to go around your house from room to room and putting a
reasonable value on everything. Its easy to underestimate the value of your
contents, but its important to make sure youre not underinsured. To help you
calculate the cost of your contents.
Should I increase my excess to make my policy cheaper?
The golden rule of voluntary excess is to make sure you know what you can afford
to pay if you have to make a claim. The more you agree to pay towards a claim, the
less cost there would be for your insurer, so they may reduce your premium
accordingly. But beware - setting an unreasonably high voluntary excess may save
you a few pounds on your premium in the short term, but if ever you need to make
a claim, you could find yourself with a large bill to settle before your insurer will
pay out.
If I don't let my insurer know about changes could this affect my cover?
Potentially, yes. For example, if youve told your buildings insurer that your roof is
in good repair, they will base your premium on the known risk of storm damage
45 | P a g e

happening to the average roof. But if, in fact, your guttering is already falling off,
or your tiles are coming loose, then theres a greater than average risk of damage
happening during a storm something your insurer hasnt covered against on your
original premium. As the full risks werent disclosed, youre effectively insuring
higher risks at a cheaper price, which could invalidate your policy and leave you
without a pay out in the event of a claim. For more information, read our guide
Can I cover myself against damage by pets?
Most home insurance policies dont cover damage caused by pets as standard. To
cover this, youll often need to buy standalone pet insurance. For more information
on accidental damage,
Does home insurance apply to me if I rent?
As the owner, your landlord will be responsible for the maintenance of the
building, so its down to them to ensure their property is protected with buildings
insurance. But youre responsible for any contents inside that you own. If anything
were to happen to your possessions, you would liable yourself for the cost of
replacing them.
What if my situation changes, such as building an extension or buying expensive
furniture?
You need to inform your insurer of any changes to your building and/or your
contents which may impact on the cover you have. The key point to remember is
that your contract with your insurer is based on mutual disclosure of information
they charge you a fair premium, based on the risks youve made them aware of.
If these risks change, so too does the value of a fair premium. If in doubt, ask
your insurer. The time taken for a quick phone call could save any problems that
arise in the event of a claim.
46 | P a g e

What if I need a quote for an unoccupied property?

If the property youre quoting for is empty, then on the first page of the quotation
process (About You) youll need to enter your main home address. On the second
page (The Property) youll then need to confirm that the property youre insuring
is not your home address. You can then select that the property is left unattended
for more than 60 days at a time.
Be aware though that an unoccupied home often falls outside the underwriting
criteria of our home insurance panel, so youre likely to receive fewer quotes than
usual.
How do I get a quote for a property I let?
If youd like a quote for a property you own but rent out to tenants, try our
landlord's insurance page.
How do I get a quote for a property I rent?
As a tenant, you can get a contents insurance quote for the property, but you wont
be able to purchase buildings insurance; this is the responsibility of your landlord.
When you start your home insurance quote, youll have the option to select
whether you want a quote for buildings, contents, or a combined policy. Here you
can select that youre quoting only for contents insurance.
How home insurance is calculated

47 | P a g e

You wont find out how much (or how little) you
could be able to pay for home insurance until you use a price-comparison service
to check the best quotes. But if you know the factors that affect premiums on
contents and buildings policies, you should be able to get an idea of whether your
cost of cover is likely to be higher or lower than average.
How much cover you need
This probably has the biggest impact on your premiums, as you would expect.

Contents insurance: It is important to make sure you are covered for the full
value of the possessions in your home.

Bear in mind that if there is a flood or fire, you could be asking your insurer
to replace the lot and if it finds out you dont have enough cover, it could reduce
your payouts.

Youll also pay more if you have any valuable items to insure: most policies
will require you to cover possessions worth more than a specific amount (for
example 1,000 or 1,500) separately.

Buildings insurance: The amount of cover you need on a buildings policy

depends on how much it would cost to rebuild your home in the event of it being
destroyed by fire or flood, for example.

48 | P a g e

This is not the same as your propertys market value: the rebuild cost is
basically materials and labour, whereas the potential selling price is based on other
intangibles such as location and proximity to good schools.
The excess on your policy
The amount youre willing to pay on each claim will raise or lower premiums. If
you opt for a voluntary excess of 500, for example, your cost of cover will be
lower than if you had a 50 excess. With the higher excess, if you made a claim for
1,000, your insurer would only pay out 500. But this means that the potential
costs to your provider are lower, hence cheaper premiums. With some parts of your
policy for example subsidence cover under a buildings policy you may not
be able to cut your excess (excesses for subsidence are usually much higher to
reflect the greater costs typically involved in such claims).
Here are some of the most popular extras.

Accidental damage cover: This addition to your contents policy will pay out if
you spill wine on a new carpet, or your dog knocks over a precious vase.

Home emergency cover: As part of your buildings or contents cover, this gives
you a 24-hour helpline to call if you have a problem such as a burst pipe or brokendown boiler.

Legal expenses cover: This will help fund legal action in a variety of
circumstances for example against dodgy workmen, or if one of your roof tiles
comes off and damages your neighbors property.
Your homes security If you do face higher premiums do to an increased risk of
burglary, you can cut costs by introducing decent security measures: these could
49 | P a g e

include locks on outside doors and patio windows which are made by to a
standard recognized by insurers, or burglar alarms. Who lives in your property
If you rent out the home youre buying insurance for, you can expect insurance
to be more expensive: providers often believe that tenants are less likely to look
after a property well than its owners.
Your claims history Customers who make claims normally see their premiums
increase as a result: insurers statistics show that if youve made a claim in the
past, youre more likely to claim in future. If youre considering making a
claim, dont just think about the excess youll have to pay.
Home insurance accidental damage explained Accidents will happen but whats
covered under accidental damage on your home insurance?
Most of us take good care of our homes. But as Elvis Costello sang in his classic
ode to the importance of home insurance: "accidents will happen". And what better
reason to make sure that youre adequately covered? After all, who would want to
shell out for a new carpet after knocking over a glass of red wine? But what
exactly constitutes accidental damage in buildings and contentsinsurance policies?
Our basic guide covers the main inclusions and exceptions.
What is accidental damage?
The definition of accidental damage is pretty uniform across home insurance
policies: damage that occurs suddenly as a result of an unexpected and nondeliberate external action. In laymans terms, that usually means an unintentional
one-off incident that harms your property or its contents. So, general wear and tear
or damage that occurs gradually will be excluded. You also wont be covered for
mechanical failure. A computer that just gives up the ghost cant be claimed for,
50 | P a g e

but it would be covered if it smashed after you accidentally dropped it onto the
floor.
Claims caused by children
Young children are the cause of many home insurance claims; and even if you
dont have offspring yourself, a lot of accidental damage is created by visiting kids.
Incidents involving home entertainment equipment (for example if a toddler
manages to topple your TV) are often covered under standard contents insurance
policies though its always a good idea to examine the small print of your
particular policy to make sure. Extending the accidental damage cover will protect
most other items in your home, so you may be able to claim for fruit juice split
over your curtains, or a felt-tip masterpiece drawn on your sofa. Common home
insurance policy exclusions are portable electrical equipment, and clothing: so
keep sticky fingers away from your laptop and favorite designer jeans and, again,
check your policy wording.
Animal-related accidents
Many home insurance providers will not cover for damage caused by chewing,
tearing, scratching or fouling by animals. This provision is the same pretty much
across the board and few contents insurance policies will cover for pets. Sorry
animal lovers: Rover needs to be fully house-trained before hes allowed near any
expensive furniture. Several home insurance providers will not cover for damage
caused by insects, vermin or infestation. Squirrels are specifically excluded from
the vermin classification of a few home insurance policies; so if your doorframe
has been gnawed away, you need to cross your fingers that the culprits have bushy
tails.
DIY damage
51 | P a g e

Checking your home insurance policy conditions before undertaking any work is
always a good idea. You may need protection under both buildings and contents
policies, depending on the particular job. If youre unsure of the difference
between buildings and contents insurance, take a look at our guides
on buildings and contents insurance explained. Be aware that some plumbing and
electrical work will not be covered if its completed by an amateur. As a general
rule, if youre not really sure what youre doing, its best to avoid an accidental
damage claim altogether by getting a professional in. For more DIY advice, see
our guide on how to stay safe and protected whilst doing up your home.Claims for
common accidents, such as bursting a water pipe with an ill-placed nail will
usually be accepted. Be careful, though, when youre clearing up the mess that
youve created; damage caused by cleaning is excluded from several home
insurance policies. As the details of accidental damage cover are not always
consistent between home insurance providers, its wise to familiarize yourself with
the details before committing to a home insurance policy to ensure that you get the
cover you need. At Confused.com, were devoted to finding you the most
suitable buildings and contents insurance so that accidents dont lead to disaster.
How to calculate your home contents value

52 | P a g e

When you take out home contents insurance, you

will be asked how much cover you want. The figure you choose should represent
the total value of the possessions in your home. This excludes the fabric of your
property, such as walls, windows and your roof, which are covered under a
buildings policy. AS a rule of thumb, anything you would take with you if you
moved house should be covered by the contents policy, including items such as
curtains and carpets. Remember, contents cover is not just to protect against
burglary. Imagine your home was destroyed by fire: you would need to replace
practically everything you owned and that is why it is vital to get an accurate
level of cover. Take a look at our guide to calculating the cost of your possessions
around the home or use our handy contents calculator to work out the value of your
possessions.
Living room

53 | P a g e

Work out the value of your furniture, such as sofas, armchairs, bookcases (and
books) and TV stands, plus any soft furnishings as well as carpet and curtains or
blinds. Youll need to add electronic items such as a TV, DVD player, computer
games consoles and hi-fi plus, of course any computer games, CDs or DVDs.
Dont forget any pictures and ornaments, as well as lamps.
Dining room
Furniture here includes dining table and chairs, and perhaps a sideboard or display
cabinet. Add the cost of crockery and cutlery, and again include carpet and
curtains/blinds.
Kitchen
The big-ticket items here will include your oven / cooker, as well as fridge,
washing machine and dishwasher. Add any non-fitted units as well as blinds, and
the cost of your kitchenware pots and pans and so on. And dont forget other
appliances such as kettles, toasters and microwaves. You should also cover the
value of any frozen food.
Bedrooms
This is where valuables such as jewellery or other heirlooms are likely to be kept.
Many policies have an upper limit for covering individual items so if something
is worth more than 1,500, for example, it may need to be covered separately at
additional cost. Include any IT equipment, such as computers, printers and so on,
as well as any other electronic items like games consoles, TVs or iPods. Add the
value of bedroom furniture such as beds, wardrobes, chests of drawers, as well as
soft furnishings and bed linen, and, of course, clothes.
54 | P a g e

Bathroom
Calculate the cost of bathroom cabinets, and toiletries if they are particularly
valuable.
Outside the home
Garden furniture can be expensive, and that needs to be covered too. Check your
policy insures you for items outside the home. Also take into account gardening
equipment such as lawn mowers or hedge trimmers, plus any bikes you keep
outside or in a garage.

If you make a claim on a home insurance policy

whether its your buildings or contents cover your insurer makes a deduction
from the total, and does not pay out the full amount. This is know as the policy
excess.
So for example if you have an excess of 100, but make a claim for stolen goods
worth 400, your insurer will give you 300.
But there are different types of excess.
On both buildings and contents policies, there is typically a compulsory excess and
a voluntary excess. The compulsory excess, as the phrase suggests, is applied to
every claim. It may typically be around 50, but check the policy before you sign
55 | P a g e

up. The voluntary excess on your policy is up to you: it can be anything between
zero (so you only pay the compulsory excess) and 400 per claim. But insurers will
generally reduce the size of your premiums if you opt for a higher voluntary
excess, as this will cut the amount of money they are liable to pay out. On certain
types of claim, different excesses may apply: for example if you have accidental
damage cover as part of your contents policy, the compulsory excess may be
higher; so might it be for damage caused by water. On buildings cover, the excess
for subsidence claims is likely to be substantially higher around 1,000 is typical
given the fact such claims are normally for very large sums. Again, you should
check the policy before signing up to make sure youre happy with the excesses
that apply
Landlords insurance guide

If youre considering renting out a property you

own, think carefully about what insurance you will need. There is plenty that can
go wrong when you give tenants the run of your house, you need to be protected
against it.
Accidents can happen
They might spill red wine on the carpet. Perhaps theyll leave the bathroom taps
running, and flood the property (if its a flat, they might flood the neighbours as
56 | P a g e

well). Or they could forget to close a window or lock the doors, so that burglars
trash the place or even start a fire that burns the place down. When you become a
landlord, standard buildings and contents insurance is no longer enough. If you fail
to tell your insurer that you have rented out your property, they will flatly refuse to
pay any claim you subsequently make. You therefore need specialist insurance.
Whether you are renting out your home, or building a portfolio of buy-to-let
properties, you will have a lot of money tied up in property. So dont just find the
cheapest deal you can, check the policy gives you all the protection you need.
Landlord insurance comes in several parts, so you need to work out whether you
need all of them.
Landlord buildings insurance.
This is a must-have, because it protects the bricks and mortar of your property. If
you suffer a flood or fire, buildings insurance will cover all the rebuilding costs,
giving you peace of mind. Many buildings policies offer unlimited cover, so you
dont need to estimate the rebuilding costs of your property. Landlord contents
insurance. Another vital piece of cover, particularly if you rent the flat furnished,
because it protects your beds, carpets, sofas, TVs and other possessions from theft
or damage. Look for a policy that will replace your belongings on a new for old
basis. You dont have to insure your tenants possessions - that is their
responsibility. Landlord liability insurance. Personal injury claims have soared in
recent years, partly thanks to ambulance-chasing lawyers, who tout for business
from people who have suffered an injury or accident, to persuade them to make a
claim for legal compensation on a no-win, no fee basis. Some claims have
topped 100,000, and although most average around 5,000, you should still
consider protecting yourself against litigious tenants. Landlord liability insurance
typically offers cover up to 2 million as standard. Loss of rent insurance. If your
57 | P a g e

property is accidental damaged or destroyed, and you cant rent it out, this
insurance will replace the lost rent. This is particularly important if you have taken
out a large mortgage on the property, and are relying on the rent to meet the
monthly repayments, in which case it could spare you the agony of losing the
property altogether. Legal expenses insurance. This covers your legal costs
following disputes with tenants, including evicting squatters, repossessing your
property and any other disputes with tenants, including defending you against any
criminal action. You can also extend your policy to cover the legal costs of
recovering any outstanding rent owed by your tenant. Landlord home emergency
cover. This will cover the cost of arranging emergency repairs following, say, a gas
leak, burst pipe, break-in or pest infestation. Policies typically cover call-out
charges, labour and materials, maybe up to a maximum sum of up to 500 per
claim. It ensures a fully qualified tradesmen will be on hand to sort out household
emergencies, 24 hours a day, 365 days a year. That is clearly a lot of insurance.
Dont panic, some of it isnt that expensive, for example, legal expenses cover will
typically cost you around 50 a year. And in many cases, the same insurer will
offer several types of cover, or bundle them together into the same policy. But
dont just go for the cheapest deals you can find. Renting out your property to
strangers can be a risky business, and you want to be properly covered if
something goes wrong.

TENANTS INSURANCE GUIDE

58 | P a g e

If you live in a rented property, you dont have to

worry about insuring the bricks and mortar. Thats the job of the landlord. But that
doesnt mean you dont need any insurance at all. Your landlord wont insure your
personal belongings, so you have to do it yourself. You need to take out a type of
contents cover called tenants insurance, which protects your stuff against nastiest
such as flood, fire, theft and accidental damage. Even if the flat is furnished, you
probably still have plenty of stuff that needs protecting, such as your TV, stereo,
laptop, iPod, mobile, music downloads, clothes and, if you have one, the contents
of your handbag (and the bag itself, of course). A good policy should also protect
any items belonging to guests or visitors while in your home.
Cover in a flat share
If you share a flat with friends, you need to decide whether to protect just your own
belongings, or take out a joint policy that covers your flat mates as well. A joint
policy may be slightly cheaper, but it can be a bit of a pain. You have the trouble of
changing names on the policy deeds if one of your flat mates leaves, plus you have
to trust your chums to pay their share of the policy premium. In many cases, it is
simpler to go it alone. First, decide how much cover you need. Carefully tot up the
value of replacing your belongings, you might be surprised to discover how much
youre worth! You can buy cover for contents worth anything anything between
3,000 and more than 100,000. The more cover you need, the higher the
premium, but dont be tempted to under-insure or you could pay a heavy price
59 | P a g e

when you claim. If your insurer discovers you bought, say, just 50 per cent of the
insurance you need, it will only pay 50 per cent of any claim, regardless of its size.
Look for a policy offering new for old replacement, so you get the full cost of
replacing damaged or stolen goods. Dont buy cover you dont need, youre just
wasting money - but make sure you do cover everything of value. If you have a
large collection of music downloads you could be seriously out of pocket if your
computer crashes, so you must cover that.
Keep a lid on costs
You can cut your premiums by taking a large excess on your policy, so long as you
can afford to pay it if you do need to claim. Beware making frivolous claims on
your policy, some tenants policies often no-claims discounts of 30 per cent or
more. And make sure your landlord has fitted the correct door and window locks,
or

your

insurer

may

refuse

to

pay

out

following

burglary.

You should also consider paying a little extra for accidental damage cover, which
gives you valuable protection against clumsy guests and excitable children. Are
you always misleading your keys? If that happens to you while renting, your
landlord is likely to bill you for the cost of repairing or replacing any locks. Many
tenants insurance policies will cover the cost.
Extra protection
You should also consider insuring your possessions for when they are outside your
rented flat, when youre out and about or on holiday. You do this by extending your
policy to cover all risks. You could also think about looking for an
extended household appliance warranty if you wanted increased security.
Look for a plan that includes tenants liability cover, which will protect you for any
60 | P a g e

accidental damage you or your guests cause in the property, such as breaking a
mirror, spilling wine on the carpet, or damaging fixtures and fittings. Most
landlords will expect you to pay for this yourself, but a good insurance policy
should cover the cost. Finally, remember to shop around for the best cover. That
doesnt always mean the cheapest, compare the small print carefully to make sure
you are buying the cover you really need.
EMI Calculator for Home Loan
Home Loan
Home Loan Amount

25,00,000

|
0|
25L|
50L|
75L|
100L
Interest Rate

|
5|
7.5|
10|
12.5|
15|
61 | P a g e

10.5

17.5|
20
Loan Tenure

20

Years

Months

|
0|
5|
10|
15|
20|
25|
30
Monthly Payment (EMI)
24,959
Total Interest Payable
34,90,279

62 | P a g e

TotalPayment
(Principal + Interest)
59,90,279
Break-up of Total Payment41.73%58.27%Principal Loan Amount Total
Interest
Compare loan rates from top banks side-by-side
Compare Rates & Apply for Home Loan

CONCLUSION
The insurance industry is in the silent revolution and the best part is that all of us
are part of this revolution process, contributing to it and influencing shape
of things to emerge. It will be quite interesting to see an excess of distribution
system taking shape and competing with each others. There is one truth in
marketing that is different consumers Approach buying differently. Studies have
63 | P a g e

time and again shown that insurance is bought because of convenience, product
features, product placement, and safety of funds, advice, and not the price. From
the survey of customers I came to conclusion that many of the customers are not
aware about the concept home insurance. As this policy is generally taken by the
businessmens, self-professionals.
We can expect from this organization that it will lead the innovative process with
quality of services that will help the Indian consumer to take advantage from
insurance business.

BIBLOGRAPHY
INFORMATION COLLECTED THROUGH SURVEY (ICICI BANK)
WWW.GOOGLE.COM
WWW.ICICI
LOMBARD .COM

64 | P a g e

65 | P a g e

66 | P a g e