A home insurance policy may not be the first priority for a person but it nevertheless is quite important as it protects one of your most precious assets, your home. Along with the building, flat or apartment, this policy also covers the content inside, including jewelry and other valuables such as works of art and curios. If the building and its contents are lost, destroyed or damaged due to causes such as natural calamities or burglary, the insurer would indemnify you for the losses.
Unfortunately, not many people understand the scope of cover of their home insurance policy. Our Google+ Hangout on Demystify Insurance Claims aimed to clear every doubt that viewers had about all forms of general insurance. However, due to time constraints, not every query could be answered live. That’s why we decided to compile a list of every twitter query that was submitted to us during and before the Hangout, along with the answer to each.
Here, we give you the answers to the queries pertaining to home insurance claims.
Q. Can a tenant claim for burglary loss?
A. Yes, he can claim for burglary loss, if he has opted for the coverage of the contents of the house and established the insurable interest at the time of loss as well as taking the policy.
Q. Does my house policy cover water damage?
A. No. Home insurance policies do not usually cover normal water damage to the contents; but water damage due to fire perils, i.e., storm, flood, and inundation are covered in the policy as per terms and conditions.
Q. Is depreciation taken into account while calculating the amount in case of burglary?
A. Normally, while calculating the amount in case of burglary the market value of the contents vis-a-vis the sum insured opted for while taking the insurance are taken in to account. If proper coverage is not available, then underinsurance plays the role. The new My Home insurance policy by Bajaj Allianz has a plan under ‘new for old’ which covers the contents of your home under a burglary claim.
Q. What information do I need to report my Homeowners insurance claim?
A. Certain documents like the intimation of the claim, the claim form, police report in case of burglary, and incidence report in case of fire and allied perils are required for reporting the claim.
Q. What is the process of claim in case of machinery breakdown?
A. You need to intimate the insurer about the claim along with the incidence report and the estimate of the repairs/replacement. The insurer will appoint the IRDA approved surveyor to assess and verify the loss. If claim happens to fall within coverage of the policy, necessary documents will be called for and settlement will be done as per policy terms and conditions.
Q. How do you decide the limit of indemnity in CGL policy? What are the factors to be considered while deciding this limit?
A. To decide the limit of indemnity in CGL policies, we need to ascertain the coverage opted for the perils covered with sum insured. Normally it is decided on AOA:AOY basis (Any One Accident to Any One Year).
Q. What are burglary claims?
A. Burglary claims refer to claims made for loss or damage of insured items by burglary, robbery, etc. Theft is also covered in the policy, if opted for at the time of proposal.
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