Should I buy a house insurance for my dream home?
I am building my dream home and was wondering if I should buy a house insurance for it at this time?
Suresh Gopi, Trivandrum
Yes, you should buy a construction all risk (CAR) policy for an under construction house. As the name suggests, it is a comprehensive policy to cover several risks that can cause material damage to your house. A CAR policy has specified exclusions such as wilful damage, design defects and faulty material. Other than the specified exclusions, all risks that can lead to physical damage are covered. These include: fire, flood, earthquake, burglary and malicious damage by third party. Further, the policy has a provision to cover property damage or bodily injury to a third party due to an accident in the insured's premises.