Home insurance has found woefully few takers in India so far, but a few new ones are looking at attracting more patronage.

Previous policies valued homes on the cost of construction, irrespective of location and amenities. However, some home insurance policy providers have now started valuing houses at Government-based market rates. This means that in case of major damage, the sum that will be given will be the agreed-upon market value and not the reconstruction cost based on cost of construction computed earlier.

The furniture is also now being covered on a new-for-old computation instead of a calculation of the market value of the old products.

Unlike the earlier products, the new policies offer cover for paintings and other valuable display items provided they have a valuation certificate. Also, portable items like laptops and mobile phones are covered by some companies if they are less than five years old. The hassle of providing difficult-to-find details like serial numbers and invoice copies of assets sought to be covered has also been obviated by some providers.

Post the 2015 Chennai floods, people are conscious that natural calamities can leave their homes damaged so much that they become inhabitable for a time, forcing them to seek alternative accommodation. Taking this aspect in mind, some insurance companies are offering add-on covers that will provide some back-up for rents in the interim period, till the house is fit for occupancy.

There are various other add-on covers on offer too now, under new, improved schemes.

All of this makes the new home insurance policies more attractive to the prospective buyer.

Source: http://www.rediff.com

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