Property (Home) insurance offers insurance coverage for a property and its contents. Generally, there are two types of coverage for home insurance. One is a package of insurance benefits designed to cover only your home against all kinds of risks it is vulnerable to such as fire, earthquake, storm, flood, cyclone, burglary and other accidents. Risk of terrorism can also be covered at an additional premium. The other comprehensive package will cover you against loss, damage or destruction of the property and home contents, because of fire, lightning, explosion/implosion, impact damage, riot, strike and malicious act and natural calamities. Also included in the policy are the valuables such as jewellery, cameras, watches, etc. Both packages cover the insured’s risks related to his/her property and further aims to protect the insured and his/her family from accidents and related risks at home.

Most home insurance schemes cover the property alone or content alone or both. However, they vary in coverage and offer a few unique features. Home insurance also encompasses personal accidents. Accidents may result in death or permanent, total disability affecting the financial health of the family. In such cases, this cover provides medical expenses up to a certain percentage of sum insured. Family or group package cover under this entitles some discount on the premium. Even the domestic electrical and mechanical appliances like refrigerator, oven and washing machines can be insured against mechanical and electrical breakdown. The sum insured is equal to the current replacement value.

The concept of property insurance is not new in India, but has not been well publicized; hence the awareness levels are very low. Several private insurance companies have entered this sector and the ensuing fierce competition is expected to benefit the customers. Some of the insurance companies include HDFC Standard Life, ICICI Lombard General Insurance and Bajaj Allianz General Insurance. The table below provides a guideline for annual premiums on householder’s insurance.