House ownership in India varies significantly, with 95% of the rural population and 69% of the urban population living in their own homes. Given that a home is a once-in-a-lifetime investment, it only makes sense to protect your property against unforeseen situations. Home insurance covers the structure and contents of the home against such unexpected damage and legal issues.
Coverages under Home Insurance
A home insurance policy will typically cover the following:
Damage to the physical structure of the building due to any reason, including natural calamities like fire, flood or earthquake and manmade disasters like riots and wars.
Damage to or loss of contents of the home, including electrical appliances, furniture, personal belongings, etc.
Damage to or loss of paintings and works of art within the home. However, this will require an appraisal to be done of the items you wish to be covered by the policy by a government-approved valuer.
Damage to and loss of jewellery and other valuable items are also covered.
Protection against burglary and theft of items from the home.
However, to be able to benefit from your policy, you must know how to file the claim correctly. There are several reasons why your insurance claim might get rejected. Read on to learn what these reasons are and how to avoid them.
Misleading Information
Do not provide inaccurate details either while applying for the policy or filing your claim. You might be asked questions regarding how the damage occurred. Try to answer as truthfully as you can. Your statements must match with anyone else who is being interrogated. Otherwise, even fully valid claims might be denied when the insurer finds questionable information.
Delay in Filing
You must file a claim within a particular timeframe. This is generally within a few days to a week after the damage occurs. Failing to do so might compel the insurance provider to reject your claim. This makes it important to read the policy document to know the timeline within which you must initiate the claim. It is advisable to let your insurer know as quickly as possible since they typically take another 7-10 days to settle the home insurance claim.
Incorrect Claim Procedure
You need to follow the correct procedure to file a claim. For example, begin with submitting a written intimation to the insurance provider. It must contain the basic information, such as the policy number and details of the incident. This must be followed by submitting the right documents, like invoices for damaged items. Failing to complete these steps properly might result in a home insurance claim rejection. So, take a close look at the policy before beginning the claim request.
Exclusions
Check for the exclusions on your policy. Not every type of damage is covered by home insurance. For instance, home insurance in India typically does not cover intentional abuse of property, depreciation due to wear and tear, or government actions. Some policies also do not cover destruction due to floods, pipe bursts or electric wiring failure. For these, you will need to consider a rider or an extra layer of protection.
To keep your policy active and your home protected against unfortunate incidents, make sure you continue to pay the premiums on time. In case of an incident, go through your policy terms to make sure you have all the required documents for filing the claim, as well as proof to support the claim. This will reduce the risk of home insurance claim rejection. However, if the claim has been denied, file an appeal to the insurer for a fair review of the decision. You can also work with the insurer to understand what went wrong. If that does not work, you may reach out to the Grievance Redressal Cell of the Consumer Affairs Department of the IRDAI.
