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For some the season is best for spending time near a fireplace watching movies with a glass of wine, while for others going out for vacations might be the preferred choice. But while making necessary arrangements, the necessity of home insurance is often overlooked by many. After all, unforeseen events such as a housebreak, fire or natural calamity never comes with a warning. So, before you pack your bags, Financial Chronicle brings to you some tips on how to keep your home safe while you are away.

Problems:

Inspite of high security thefts do take place, and even the best fire protection systems sometimes fail to act in time resulting in huge losses. "If one has decided to protect one's prized possessions, one should devote at least half an hour to especially understand what the insurance covers and what it doesn't. One must also spend time to know the various costs and what to do in case of a loss," said TA Ramalingam, head - underwriting, Bajaj Allianz General Insurance, which sells Easy Householders plan. There are two types of home insurance available in market, standalone and comprehensive (covering both home-content and the building).

Solutions:

In pre-underwritten plans, types of article covered and their sum insured are pre-fixed. "Customers should aptly review the details of the plan to ensure that items covered, sum insured, individual sub-limits and coverage meets the needs. In a customised plan, a declaration of the value of each item to be covered is to be provided to insurer," said Ajay Bimbhet, MD, Royal Sundaram Alliance Insurance, which sells Home Shield Classic product. Those living in rented homes should insure their home content. A 1,000 sq ft home with a sum insured of Rs 20 lakh with a total value of content of Rs 5 lakh (including jewellery) along with terrorism cover and additional rent provision will get home insurance for a premium of Rs 4,400-5,500 per year. If you buy for a period of three to five years, discounts can be availed, according to ICICI Lombard.

Covers or not:

A standard home content insurance extends to contents such as furniture and electronic items. Many also provide cover for jewellery and valuables kept in the house, in bank lockers or worn by family members. Also, losses incurred in case your home has been unoccupied for over 30 days, without prior notice to the insurer, are not covered. Cash, bullion, works of art and antiques are also not covered by some. Some policies will have deductibles in case of breakdown of domestic appliances and an electronic device, which means that you may have to shell out Rs 500-2,500 even if your claim is valid.

Devil in details:

Proper care should be taken while declaring the replacement values of all items. Attention is also required when declaring addition of assets during the policy period and reviewing the sum insured. "It is always better to prepare a list of all items to be insured. A government-approved valuer's valuation certificate of gold and other jewellery is crucial. If the golden bangle has meenawork, describe it in as many words mentioning the size of bangle and other related details," said Rahul Aggarwal, director (personal lines), Optima Risk Management Services. Aggarwal also added that it's prudent to take workmen compensation policy for maid or driver, who will occupy your home, during your absence and may be harmed.

Claims process:

Once you provide your policy and other details regarding claim - the request is sent to the claims department. The company appoints a surveyor within 48-72 hours. You will need to submit all the relevant documents to the surveyor. The surveyor submits the final survey report along with the documents within seven days.

Source: http://www.mydigitalfc.com/