01.18
When discussing with home insurance ,building insurance and content
insurance is so important.So,we can explain briefly about these two
insurance.The housing finance companies are insisting on building insurance
so that in the event of a disaster it can be repaired or rebuilt, as lenders
don’t want to be left without security for their loan. A home insurance
policy should cover expenditure to rebuild your home in the event of it
being totally destroyed or damaged to the point that complete rebuilding is
necessary. Different home insurance companies have different specifications
for policy coverage.Home insurance companies in India mostly have home
insurance plans that insure the building structure of your home for its
reconstruction value.Similarly as the modalities adopted in building
insurance, different home insurance companies in India have different
policies for content insurance. Most companies comply with insurance plans
where a value equivalent to the market value of household contents i.e. the
value for which this used item could be bought or sold in the market is
covered as insurance.The insured amount given against the perils for
building or structure and its contents is assessed either on ‘reinstatement
value’ basis -which is the value for replacing the item with a new item of
same type and make; or on ‘market value’ basis -which is the reinstatement
value less depreciation depending on the age of the item.content insurance
gives protection against various damages.They includes
fires,explosion,theft,damage due to electrical and mechanical breakdown.