Things which should be Covered to secure your house..

By: Karshni on 09:20

The good news is that home insurance is very cheap in India and will not strain your wallet. The vital covers your house needs will cost you less than Rs 2,000 a year (see table). The cost of insuring the structure against damage is as low as Rs 50 per Rs 1 lakh. Keep in mind that you don't need to insure the house for the value of the property but only for the cost of reconstructing it. The costs can vary from Rs 1,500 per sq ft for a basic no-frills structure to Rs 2,500 per sq ft for a premium construction. So, a 2,000 sq ft house should be insured for Rs 30-50 lakh and the cost will be Rs 1,500-2,500. If you break this down to daily cost, it is no more than the amount you pay for a cup of tea at a roadside vendor. "Home insurance protects both your house and property at a minuscule cost. The benefits far outweigh the cost," says Neelesh Garg, executive director, ICICI Lombard.




You also need to insure the contents of the house against the damage. The cost of insuring contents worth Rs 10 lakh against natural and man made calamities is just Rs 255 (see table).

Then come the covers against burglary and breakage.

A standard fire and other perils policy covers damage due to fire, lightning, storm, flood, landslide, earthquake, vehicle impact, rioting, arson and bursting of pipes and tanks.

It's advisable to enlarge the cover a bit to include attendant risks as well.

for full detailed article you can refer to http://articles.economictimes.indiatimes.com/2012-09-10/news/33737272_1_home-insurance-general-insurance-insurance-brokers