Spend, Save and Invest Smartly
It is not daily that you venture out to buy an apartment. Most of the time you buy an apartment only once in your lifetime.
“Home is a place you grow up wanting to leave, and grow old wanting to get back to”.
It is very necessary for you to insure your most valuable possession, your apartment. This means you must insure apartment with home insurance plan. You own an apartment in a housing society. There are several apartments in this society.
Many a time the housing society avails home insurance, for all the apartments in the building. This is a basic fire and allied perils home insurance. This protects the structure of the building from damage due to a fire, earthquake, landslides or a flood. The basic home insurance availed by your housing society does not cover the contents of your house. You need to avail a separate home content insurance, to cover for the loss/damages to the contents of your home.
If your housing society does not insure your apartment, then you need to avail a householder’s package policy (HPP). This covers both the structure of the apartment, as well as the contents of your home. You cannot avail home insurance, if you run a commercial set up/business in your apartment.
Costly electronic gadgets of your house or furniture are destroyed in a fire /short circuit. Are you given a new electronic gadget or furniture set to replace your loss? No…The value of the asset (Furniture or the electronic gadget), is given to you after accounting for depreciation.
Electronic gadgets such as a laptop, computer, microwave, LED TV, Music systems can cost a lot. You need to avail EEI (Electronic Equipment Insurance), to insure your costly electronic gadgets. You need to insure your electronic items/gadgets at their current market value (Today’s price), so that the money you get to replace these electronic items in case of a loss is a meaningful amount. This is an all risk cover which covers water damage, electrical and mechanical breakdown, fire and damage due to an accident to the electronic equipment. You need to list the name of the equipment (Company which manufacturers it), Serial number, model number and so on. Insurance is based on trust and it is in your best interest that you make a proper disclosure.
Yes, the housing society avails insurance for the whole building. Yes, your neighbor may violate the conditions of the home insurance and run a business from his home. The insurer would deny his (neighbors), claim for the damages to the structure or the contents of his house.
Your claim is not affected as long as you are not breaking the clauses of the home insurance policy, by running a commercial setup/business in your apartment.
The housing society might avail home insurance for the entire building, but the apartment which you own is insured in your name. The money you spend for the repair of the damage to your apartment may be paid directly to you, if the housing society gives a no objection certificate. This means you must insure apartment with home insurance plan.
The corridors outside your apartment and the staircase are not part of your apartment.They are known as the super built up area and your housing society only, can insure this under a home insurance policy.
The housing society insures the building and only they can increase the sum assured of the building.If you feel your apartment is not sufficiently insured then you must avail a householder’s package policy.
You have learnt how important it is to insure apartment with home insurance plan. You must never venture out from your apartment without home insurance.