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Home insurance is an insurance policy that not only protects the house, but also covers the belongings in the house. This type of insurance gives coverage against natural calamities, such as floods and earthquakes as well as incidents, such as fire, burglary, and vandalism.
The policy encompasses home, building, and structure against any disaster and/or damages. This also includes the contents of house to be covered under the policy.
In order to enhance the policy coverage, the add-ons that a homeowner should consider are valuable contents add on, additional living expenses add on, tenant liability and loss of rent, or rent for alternate accommodation add-on.
The most common exclusions include losses from ‘intentional acts’ by the policyholder or anyone on behalf of the policyholder, and damages caused by war or invasion.
It is very important for one to understand the claim settlement process before buying a home insurance policy. For claims below Rs 1 lakh, a survey is done virtually with very less documentation. If the claim amount is higher, a licensed surveyor may visit the site, conduct the inspection, collect the documentation, and submit a detailed report.