1. Home insurance policy reinstatement: Here is what can happen if your home is destroyed by fire, earthquake

Home insurance policy reinstatement: Here is what can happen if your home is destroyed by fire, earthquake

It is imperative to be thorough with the policy wordings and have complete clarity on what is covered in your home insurance policy.

By: | Published: November 27, 2017 3:55 AM
Home insurance policy, HDFC ERGO General Insurance, home insurance cover pay , quries regarding home insurance A zero depreciation cover is an add-on cover, purchased in addition to a comprehensive insurance policy. (Reuters)

Does a home insurance cover pay money for rebuilding the house in case it is damaged by an earthquake or fire?

– Girish Bhasin

It is imperative to be thorough with the policy wordings and have complete clarity on what is covered in your home insurance policy. Ideally, the sum insured chosen should be taken on the basis of the reinstatement (rebuilding) value, which covers the cost of reconstruction and the renovation of your house. If your home insurance policy covers reinstatement, it will provide for protection against repair or rebuilding charges in case your home is damaged in an earthquake, fire, flood, storm or riots. Additionally, the insurance will also cover the cost of repairs, if the building is partially damaged.

Is it mandatory to take a home insurance cover with a mortgage loan from a housing finance company?

—Anup Kumar

There are many insurers in the market offering different home insurance covers for customers to choose from. Some of these products offer protection to the mortgaged property, i.e., the building or its contents, while some additionally also offer coverage for the insured individual’s health against personal accidents and critical illnesses. Also, the term of the coverage offered can be for one year or even 20 years and above. Having said this, as a customer, you are not bound to purchase a home insurance from a housing finance company. You are free to choose any insurance policy from the insurer of your choice, who is registered with Irdai.

Can I renew a zero depreciation cover for my vehicle every year?

—Anuj Sharaf

Yes, a zero depreciation cover can be renewed every year. A zero depreciation cover is an add-on cover, purchased in addition to a comprehensive insurance policy. Hence, you can renew a zero depreciation cover every year, but the renewal of the cover can only be done up to a certain age of the vehicle, which would be based on the acceptance criteria set by your insurer.

The writer is executive director, HDFC ERGO General Insurance. Send your queries to fepersonalfinance@expressindia.com

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