What’s the ideal home insurance for physical structure without the valuables?
Your home insurance calculation should follow a simple formula of multiplying the covered area of your home with the average rate of construction. So for a 1500 square feet apartment with an average rate of construction of Rs. 1000 per square feet the minimum sum insured towards your structural component should be Rs. 15 Lakhs.
You can go for a simple Home Insurance plan. This is known as building insurance. This type of Home Insurance covers the structure of your house from any kinds of dangers and risks. In addition to this, you can opt for protecting any permanent fixtures within the house. This includes your kitchen and bathroom fittings, and also the ceiling/roof of the insured house. Some houses have garages, an outdoor room/house or sheds. This type of insurance usually extends to these structures as well.
Another cover is the fire and special perils cover. Offered by every leading insurance company, it provides coverage against certain special perils and fire outbreak. This coverage can be bought by house owners (for their own house) and also by tenants residing in a rented house. The sum insured, for this policy, is calculated as Building - Cost of reconstruction (exclusive of land value). A Standard Fire and Special Perils policy covers the insured home against loss and damages caused due to the following causes –
• Natural calamities like lightning, fire, volcanic eruptions, forest fire, earthquakes, storms, floods.
• Damages caused due to explosions, man-made anti-social activities like strikes, riots, damage caused with malicious intent
• Damage caused by direct contact of rail/road vehicle. Damage caused due to the insured house, with your own vehicle, is not included in this cover.
• Damage caused due to bursting or/and overflowing of water tanks and pipes.
• Subsidence including rockslide and landslide.
• Missile testing operations.
• Damage caused due to leakage from automatic sprinkler installations.
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