Why it is crucial to take a ‘fire and allied perils’ cover

The basis of deciding the sum insured for the structure is the area of the house measured in square feet multiplied by the reconstruction cost, which is approximately R2,000 per square foot today. The premium for a R1 lakh sum insured will be a mere Rs 60 plus tax for a year. The cover for the contents can be taken by providing a listing of all the contents in the house and putting a sum insured against each.

There are some long-term policies also available for structure where the cover can be provided for 10 years. The fire and allied peril cover is basic and the simplest of all the covers in the home insurance basket. It is also one of the most inexpensive ones available in the market.

During such festivals, it is also important to safeguard not the property alone, but life as well. It is advisable to buy a policy which provides coverage against accidental loss of life as well.

Such policies provide cash in case of unexpected incidents and offer hospitalisation benefits on a daily basis to the insured person. In addition to that, the plan provides active lifestyle benefits. Regular accident cover policies only cover death or partial/total disability, but such a policy covers injuries as well and pays a lump sum amount, irrespective of the cost of treatment.

The moment of truth in insurance is comes when a claim is registered. In the event of

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