What is property insurance in India?
It is a type of insurance plan that provides cover to the property owner from several kinds of unforeseen incidents such as theft burglary, natural calamity, fire accident, etc. Getting insured with a property insurance plan will not only provide you financial aid for the loss or damage but also a sense of security.
- Shriram General Home Insurance.
- Raheja QBE Home Insurance.
- Oriental Home Insurance.
- New India Assurance Home Insurance.
- National Insurance Home Insurance.
- IFFCO Tokio Home Insurance.
- Future Generali Home Insurance.
- Bharti AXA Home Insurance.
Property insurance is defined as a policy that covers the owner or renter of a house from a variety of damages such as theft, fire, some types of weather damages and more.
A homeowner's insurance policy will offer coverage for any loss or accidental damage to the contents of the home such as kitchen items, electrical appliances, fixtures, furniture, lights, clothes, different personal belongings and many more.
As per data from The Asia Insurance Review – Aug 2017 – “Home insurance penetration in India is just about 1%. Barely 3% of houses in India are insured. Countries like US, UK, France, Australia and China have home insurance penetration in the range of 90-97%.”
Well, as per the Reserve Bank of India, IRDAI, home insurance against home loans is not mandatory. It is completely under your discretion, and a financial institution cannot force you to invest in property insurance.
- Rented or owned accommodation.
- Tenure of policy required.
- Policy cover required only for structure or structure and contents.
- Details about the property like location, age of property, home type, sum insured, construction / built area, etc.
- Your own details like name and contact number.
Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance, among other policies. The three types of property insurance coverage include replacement cost, actual cash value, and extended replacement costs.
Home insurance protects your house, covers liability, and protects additional property structures, such as detached garages and backyard sheds. In comparison, property insurance protects your home structure from many natural perils, except floods or earthquakes.
Property insurance is a type of insurance policy that can provide coverage for property owners or renters. Examples of property insurance include homeowners, renters, and flood insurance policies. These policies can provide coverage for damages caused by fire, flooding, theft, weather, and other risks.
What are the different types of property insurance policies in India?
- Types of Home Insurance Policies. ...
- Standard Fire and Special Perils Policy: ...
- The building or Home Structure Policy: ...
- Liability Insurance: ...
- Personal Accident Insurance: ...
- Burglary & Theft Insurance:
- Dwelling coverage is the basis for all homeowners insurance policies. ...
- Contents coverage protects items including furniture and clothing in your home.
Your home insurance shields your home against losses and damages caused due to natural calamities like floods, earthquakes, fire, lightning, cyclones, etc., and man-made hazards like vandalism, thefts, riots, etc. Helps rebuild your life: Losing a home that you worked so hard to build can be very painful.
Home insurance penetration in India is just about 1%. Barely 3% of houses in India are insured. Countries like US, UK, France, Australia and China have home insurance penetration in the range of 90-97%.
You may have health insurance coverage in India, but the same health insurance will not cover you in the US. Visitor Guard® offers the best travel insurance for parents from India.
Although travel insurance isn't required, it's advisable to at least purchase travel medical and medical evacuation coverage because India won't accept your U.S. health insurance. More comprehensive policies can also cover other travel mishaps, such as trip cancellations and delays, lost baggage and car rentals.
According to the amended Motor Vehicle Act, you are required to pay Rs 2000 and/or 3 months imprisonment if caught driving without insurance in India. In case you are caught repeating this same offence, the fines are increased and you are likely to pay Rs 4000 along with 3 months imprisonment.
Property insurance is bought not only for the purpose of coverage, but also as a backup in case things go wrong. It covers your house and its contents. However, many of us are unaware that it covers the land on which the property is built.
What is the Motor Vehicles Act? In India, as per the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. Policyholders must have at least 'third party liability' motor insurance cover even when opting for the basic insurance plans.
The annual premium of covering a house and its contents for Rs. 20 lakh is only Rs. 900-1,200 (see graphic). The cost is minuscule compared to the coverage it offers.
Can NRIs buy insurance policy in India?
A: Yes, NRIs are free to purchase term policies in India. They must check whether their chosen plan will provide the needed cover in their country of residence.
NRIs cannot purchase agricultural land, but they can inherit it. They can purchase a farmhouse as long as it is not located on agricultural land, and they can construct buildings on non-agricultural land.
Some taxpayers have asked if homeowner's insurance is tax deductible. Here's the skinny: You can only deduct homeowner's insurance premiums paid on rental properties. Homeowner's insurance is never tax deductible your main home.
Homeowners insurance is one of the expenses you'll pay as a homeowner. Homeowners insurance is typically not tax deductible. On the other hand, homeowners do enjoy other tax deductions. You can claim these deductions if you itemize your tax return each year.
All insurance policies become an asset once the plan matures — that is, you have paid for it and are credited with a lump sum.
