Home Insurance Simplified: Coverage Types and How to Choose the Right Policy

Home insurance protects your investment from disasters. But policies are confusing. Here's what you actually need to know.

Types of Home Insurance Coverage

Structural coverage: Covers building structure (walls, roof, floors) against fire, theft, natural disasters. NOT included: fixtures you later added, expensive items like jewelry. Contents coverage: Covers furniture, appliances, personal belongings inside. Liability coverage: If someone is injured on your property, this covers legal costs and damages. Additional living expenses: If disaster renders home uninhabitable, this covers temporary housing costs.

How Much Coverage Do You Need?

Structural: Get enough to rebuild your property from scratch. Not replacement value (with appreciation), but rebuilding cost. Consult contractor for estimates. Contents: Sum up furniture and belongings (most policies cover 40-70% of structural value). Liability: At least ₹10-20L for protection.

Exclusions: What Insurance WON'T Cover

Most policies exclude: Wear and tear, maintenance issues, gradual damage (dampness, settling cracks), damage from poor construction, acts of war. Certain disasters may be excluded (earthquake, flood)—add riders if at risk. Read exclusions carefully.

Deductibles: Your Out-of-Pocket Amount

Higher deductible (₹10,000-50,000)=lower premiums. Lower deductible (₹0-5,000)=higher premiums. Choose based on your emergency fund. If you can absorb ₹20K loss, higher deductible saves money over time.

Insurance Premium Costs

Typically 0.05-0.15% of property value annually. A ₹50L property might cost ₹2,500-7,500/year. Varies by: insurer, coverage type, deductible chosen, property age and condition, location risk.

Key Tips for Getting the Best Deal

Get quotes from 3+ insurers. Mention safety features (security system, fire extinguisher) for discounts. Bundle home + auto insurance for discounts. Review coverage annually as property value changes. Increase coverage if you renovate.

Filing a Claim: What Happens

Notify insurer within 30 days of damage. Document damage with photos/videos. Get repair quotes from contractors. Submit claim with documentation. Insurers verify claim and process payment. If claim is denied, you can appeal.

Making Insurance Decision

Don't buy the cheapest policy; buy appropriate coverage. Insurance is risk transfer—pay a little now to avoid catastrophic loss later. A house fire is rare but devastating; insurance makes financial sense. Once you've bought your property through Ishanya AI, we recommend consulting an insurance broker for optimal coverage.