Coverage

The coverage offered by this product is very comprehensive. It will include,
Fire & Allied Perils consisting of the following perils:
 

• Fire, Lightning, Explosion/Implosion
• Aircraft Damage
• Riot, Strike and Malicious Damage
• Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, and Inundation
• Impact damage by any Rail / Road Vehicle (other than vehicles belonging to the Insured person/ employees of the Insured person/any occupier of the Insured Premises) or Animal.
• Earthquake (Fire and Shock), Subsidence and Landslide including Rock slide
• Bursting and/or overflowing of Water Tanks, Apparatus and Pipes
• Missile testing operations
• Leakage from Automatic Sprinkler Installations
  • Repairs or alterations to the buildings or premises
  • Repairs, Removal or Extension of the Sprinkler Installation
  • Defects in construction known to the Insured.
• Bush Fire excluding loss, destruction or damage caused by Forest Fire.
• Terrorism (Optional)
• Burglary 

 

Coverage for compound wall and landscaping

 

If you are staying in an independent house, then you can cover your compound wall and landscaping too. You can provide a separate sum insured for these in addition to the building sum insured. 
 

Long Term Cover

 

You have the flexibility to choose a tenure of your choice, starting from 1 year to 20 years. Long term insurance provides complete peace of mind and secures your house for up to 20 years. It also helps avoid the hassle of you having to track your renewal date and renew the policy every year.
 

Escalation Benefit

 

This product provides you a very useful escalation benefit, which ensures increase in your base sum insured of 10% each year, for the complete tenure of your policy. This will ensure that the available sum insured each year is constantly raising and keeping pace with the increase in construction cost due to inflation. This benefit is available only in a long term policy. This benefit is available to you at no extra cost. The below example gives clarity on how the escalation will be arrived at.

 

 

 

Tenure Discount

 

If you do not avail the Escalation Benefit, you have the option to opt for a tenure discount, as per the table given below.
 

 

 

Losses due to Burglary

 

This product offers a very useful cover against loss or damage to the building due to a burglary. The coverage level will vary depending on the plan opted (please see the grid below). This section pays for expense incurred for repairs so that future loss can be prevented. This includes installation of CCTV cameras and safety doors and will also include repairs to any structure including doors, windows and building.

 

 

 

Add on Covers (Optional)

 

This product offers 2 very useful add on covers, which can be availed at the time of buying this cover.
 

 

1) Rent for alternate accommodation

 
In the event of the insured premises being destroyed or damaged by any insured peril so as to become unfit for occupation and the insured in consequence taking up alternative accommodation, this cover will indemnify the insured against the rent which he is called upon to bear, for up to 6 months, up to the eligible benefit level available under the plan opted (as shown below)

 

 

 

2) Loss of rent

 
In the event of actual total loss of the building insured under this policy which was owned by the insured and let out on rent and which is not in a position to be let out on rent as it is destroyed or damaged by any insured peril, this cover will reimburse to the insured towards actual loss of rent per month not exceeding the annual limits specified against each plan (as shown below) and for a maximum period of six months.

 

 

 

 

Both section discount

Avail a 5% discount on premium by opting cover for both the building and contents sections.

 

 

Basis of calculation of Sum insured for Building

 

For all Plans other than Bronze
 
Sum Insured on Reinstatement Value Basis shall be the Reconstruction Value for the "Building", excluding of the cost of the land, whose Sum Insured is arrived at as = A X B where
 
A. Area of the "Flat/House" (Square Feet) indicated in the Registered Sale Deed Agreement.
 
B. Prevailing Present Day Cost of Construction rates in Area/Locality where the insured property is situated.

 

Example for calculation of sum insured on reinstatement value basis

 
Total built up sq ft area of Flat as specified in Registered Sale Deed Agreement – 1,000
Cost of construction – Rs.2,500/- (excluding land value)
Sum Insured – 1,000 (sq ft) X Rs.2,500/- = Rs.25,00,000
 

For Bronze Plan

 
For Indemnity Value basis the formula shall be arrived at as sum insured = A X B X (1 - Depreciation at the Rate of 2.5 % per annum X Age of the Building).
 

Example for calculation of sum insured on Indemnity value basis

 
Total sq ft area of Flat as specified in Registered Sale Deed Agreement – 1,000
Cost of construction – Rs.2,000/- (excluding land value)
Age of the building – 4 years
Depreciation – 2.50%
Sum Insured – 1,000 (sq ft) X Rs.2,000/- X (1-10%) = Rs.18,00,000
 

Cost of construction range for structure 

 
Normal – Rs.2,500/- to Rs.2,999/- per square feet
Standard - Rs.3,000/- to Rs.3,999/- per square feet
Premium – Rs.4,000/- to Rs.4,999/- per square feet
Luxury – Rs.5,000/- per square feet and above
 
Note: The above rates have been arrived at based on current market trends. You can choose the amount that best matches your type of construction. This chosen rate should exclude the land value, as the coverage is only for the construction cost, excluding the land value.

 

 

Important exclusions

 

• Buildings of age more than 30 years old.
• Damage caused by depreciation or wear and tear or which are pre-existing in nature or which falls under the terms of a maintenance agreement.
• Loss or damage or collapse of "Building" due to structural defects, latent defects, poor maintenance, workmanship.

 

Acceptance Criteria and Policy terms:

 
Age of Proposer: 18 years and above
Tenure: Section I - Building - 1 to 20 years
 

Coverage basis:

 

 

Important Conditions:

 
The Building shall possess a valid Occupancy Certificate, a Building Completion Certificate and the Right to Reconstruction Certificate issued by the competent Government authority.
 

Excess amount applicable

 
Excess applicable in respect of every section shall be the amount specified in the below-mentioned table. In respect of loss or damage arising out of a single incident to multiple items covered under a single section, the excess amount shall be applicable on the item with the highest value only and not to each and every item.