Source: The Economic Times
With the realty rates soaring high, buying a house has become quite a costly affair. For most of the people it means taking bank loans and exhausting their life long savings on the purchase of an apartment. After such huge investment getting proper insurance cover for the house becomes imminent for damage due to fire, earthquake, floods or burglary as it leaves the owner in a miserable condition. Although a home insurance can be availed by spending as little as Rs 700 to Rs 1,000 annually to protect against the damage of Rs 10 lakh, yet most people are ignorant of the benefits of insurance and do not prepare themselves for unforeseen circumstances.
The practice is more prevalent in the western countries where the end user is quite particular about getting their homes insured. These days even the banks emphasise on home insurance before sanctioning home loans to ensure uninterrupted repayment. The private and public insurance companies like the ICICI Lombard, New India Assurance, Oriental Insurance and United India Insurance, among others, offer home insurance policies to the end user at decent rates.
Alok Jha, regional manager Oriental Insurance says, "We offer two types of home insurance policies viz Standard House Holder Policy and the Sweet Home Policy. Under the Standard House Holder Policy, the householder has to pay premium at the rate of 50 paise (annually) per Rs 1 thousand for insurance against fire which include earthquake, Rs 2/thousand for household items, Rs 2.4/thousand for insurance against burglary and for precious items like jewellery the householder would be required to pay 1 percent of the total sum insured. Under the Sweet Home Policy the householder has the option to choose the sum insured. Options available are Rs 4, Rs 6 and Rs 8 lakhs."
Detailing about the premium rates of Bajaj Allianz, Akhil Jain, company sales manager says, "For insurance against burglary, the house owner has to pay Rs 2.25/thousand and for jewellery it is Rs 10/thousand. We provide 10 percent discounts for people who buy more than 4 policies at a time." To attract tenant, mall developers buy a composite coverage to protect their tenants against any loss due to fire, earthquake and burglary.
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