by Akhilesh K Prasad
Leading insurers and banks offer a wide range of insurance policies. A customer can choose from among them as per his requirement. Customers must also be guided and made aware so that they choose the right policy that serves their purpose. The following is a list of the most popular varieties of insurance policies available in the Indian market:
Standard Fire and Special Perils Policy
This type of insurance policy provides coverage against certain special perils and fire outbreak. It can be availed of by house owners or tenants residing in the house. Such a policy covers the insured home against loss and damage caused due to the following-
- Insurance against natural disasters such as lightning, volcano eruptions, bushfire, forest fire, earthquakes, storms, floods.
- Damages caused due to explosion or implosion and man-made anti-social activities such as strikes and riots.
- Damages caused by direct contact of rail or road vehicle, other than own vehicle.
- Damages caused due to bursting or overflowing of water tanks, pipes etc.
- Subsidence including rockslide and landslide.
- Damages caused due to missile testing operations.
- Damages caused due to leakage from automatic sprinkler installations.
Home Structure/Building Insurance
This covers the structure of the house and includes the permanent fixtures within it. For example- Kitchen and bathroom fittings, and the ceiling or roof, outdoor rooms, shed, garage where applicable is also covered under this type of insurance policy.
Public Liability Coverage
This type of policy covers and damages that may be experienced by a third party, such as a guest, inside the insured house property.
This type covers the buyer of the policy and his family. Compensation is due on the permanent disablement or death of the insured due to accident or physical injury that may have happened anywhere, not just in the house.
Burglary & Theft
This type of insurance covers any loss or damage of valuables stolen or damaged when there is a burglary or theft in the insured house.
As the name suggests, this covers the contents inside the house from damages or loss due to theft, fire, flood and other mishaps. It includes documents, portable equipment, jewellery, TV, refrigerator etc.
A tenant lives in a rented house. Therefore, he needs to focus on the contents of the house which are his property. This type of insurance is perfectly suited for tenants.
The upkeep of the building that is being rented out is the responsibility of the landlord. Regular buildings insurance policy is not suitable for such landlords as someone else will be residing in the rented building or flat. Landlord’s insurance covers loss of rent and public liability and is ideally suited for landlords. However, it does not cover willful destruction of property, damages due to wear and tear, loss due to war etc.
An MBA by qualification, Akhilesh has dabbled into various businesses. He is a keen debater, data miner and analytically inclined. His blogs tend to present a fresh perspective on any given matter