Householders Insurance Policy is a comprehensive package policy that protects
householders from a wide gamut of potential risks and perils. It covers almost
all your personal belongings and household possessions, including furniture,
domestic equipment, electrical appliances, furnishing, food and drink, some
valuables and cash up to a certain limit, against loss or damage. Applicants can
either choose a comprehensive cover where all the 10 sections will get covered
or the specific sections in which they want coverage. Public sector companies
require one to take the coverage of a minimum of three sections, of which the
first two sections, namely fire coverage and burglary, are mandatory.
In the present times, the householder's insurance policy available in the market
features, 'new for old' cover. In such a case, the policyholder gets full cost
of replacing an old item with a new one if it is damaged or stolen. However,
some items, for example clothing and bedding, are not usually covered on a new
for old basis. There are some householder's insurance policies that provide lump
sum money in case, the applicant or his/her spouse dies as a result of a fire,
theft, or an accident in the home. Household contents insurance policies do not
usually cover personal possessions taken out of the home. However, by paying an
extra sum, applicants might be able to get cover for such items as well.
Formalities
The householder's insurance policy, being a package policy, requires only one
proposal form to be completed instead of separate proposal forms for individual
policies, thus doing away with the tedious procedure associated with individual
policies. Applicants are required to submit the completed proposal form giving
full details of the property to be insured, full value of jewelry and individual
values of each item to be given. In case the applicant opts for more number of
sections, a discount in the premium is allowed for non-tariff covers. Know more
about the contents of householder's insurance policy and how to make the right
choice.
Contents Of Householders Insurance Policy
The householder's package policy includes 10 sections. Apart from the below
mentioned section, the policy also covers perils, such as floods, cyclone,
lightening, explosion, riots, strikes, damage to electrical & electronic
equipment due to breakdowns/short circuits and even accidental injury to your
family members or even your driver/maid-servant.
* Fire Insurance of the building and household contents
* Burglary, housebreaking, larceny and theft
* All Risks Insurance for Jewelry, ornaments and other valuables
* Domestic Appliances (Electrical and mechanical failures)
* TV, VCR & VCP and music systems
* Plate Glass Insurance
* Personal baggage while on travel
* Pedal cycle Insurance
* Personal accident
* Third Party Liability
Choosing Household Contents Insurance
At the time of getting household insurance, you need to work out how much
insurance you actually need/require. Calculate the cost of replacing the cost of
all your possessions, in a crisis-situation. Instead of signing the deal with
the first insurer, the best bet would be to get quotes from several and then,
evaluate the best deal.
* Know in detail what each policy covers and its exclusions, if any.
* What is the price of the policy? Is there any discount being offered? Is it
worth that amount of premium you would have to pay in a specific period?
* The premium you pay would be dependent on your age, the place you live in, how
much cover you want and the value of your possessions. The more valuable your
possessions are, the more premium you would have to pay for your policy.
* Look out for additional clauses that mention restriction or additional
conditions on your cover.
* Find out the no-claim bonus, for every year you make no claim against your
policy. Also, calculate the amount by which the no claims bonus would be reduced
if you made a claim.
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