Imagine coming home to find a burst pipe has turned your living room into a swimming pool. Will your policy save the night or just send “We’re sorry for the inconvenience” emails? Let’s make sure it saves the night.
The insurance world can feel like a maze of fine print and clever clauses. This blog keeps it simple, honest, and specific so you can buy smart, avoid claim shocks, and sleep better.
Building vs. Contents: Cover Your House and Your Stuff
Home insurance typically comes in two parts: one covers the building (structure) itself, and the other covers the contents inside. The building/structure cover protects the physical home – walls, roof, floors, and built-in fixtures like your kitchen cabinets or bathroom fittings – against disasters like fire, storms, or earthquakes. The contents cover, on the other hand, protects your personal belongings (furniture, electronics, appliances, clothes, jewelry, etc.) against loss or damage due to events like fire, theft, flood, etc. You can choose a combo policy that includes both, or just one of them as needed (for example, renters often only take content insurance, since the landlord insures the building).
How do you figure out how much your contents are worth?
Don’t guess – make a home inventory. The best way to value everything you own is to go room by room and list out your possessions and their approximate costs. For instance, walk through your home and jot down items in each area:
- Living Room: TV, sound system, sofa, coffee table, curtains, carpet, etc.
- Kitchen/Dining: Refrigerator, microwave, oven, dining table set, cabinets, cookware, etc.
- Bedrooms: Beds, wardrobes, laptops/computers, AC, jewelry, personal devices, and so on.
- Bathrooms: Washer/dryer, geyser, cabinets, personal care electronics.
- Miscellaneous/Outdoor: Any furniture in the balcony or garden, tools in the shed, etc.
Add up the replacement cost of everything. You might be surprised how quickly it totals up! This room-by-room inventory ensures you set the right “sum insured” for contents, so you’re not under-insured. It also comes in handy if you ever need to file a claim – you’ll have a ready list of what you own. (Pro tip: keep receipts or note down model numbers for big-ticket items; we’ll explain why in the claims section.) And remember to update your inventory when you buy new items or gadgets, so your coverage stays accurate
New-for-Old Coverage: Insure for Replacement Value (Avoid Underinsurance)
New-for-Old means the insurer pays to replace damaged items with brand-new ones of a similar kind. No “second-hand value” fights.
A common mistake People make is declaring a lower value to “save premium.”
Simple example: Your contents are worth ₹10 lakh, but you insured them for ₹5 lakh (50% underinsured). A fire causes ₹2 lakh loss. Because you were underinsured by 50%, the insurer may pay only ₹1 lakh. You lose the other ₹1 lakh. Ouch.
Pro tip: For the building, ensure reconstruction cost (what it costs to rebuild today), not market price. For contents, use the room-wise total you made. Slightly over is safer than under.
Own high-value stuff? Use All-Risk and schedule items like jewelry/art
All-Risk for contents gives wider protection often including accidental damage and losses beyond your home (check policy wording).
Scheduling = List pricey items by description and value (e.g., “Diamond ring ₹3,20,000; 22K chain ₹1,10,000; MacBook Pro ₹1,80,000”). For jewelry/art, a valuation certificate helps and speeds up claims.
Real-life example: Meera wears her engagement ring to a wedding in Jaipur and later can’t find it. A basic policy may not help. But All-Risk + scheduled jewelry add-on likely would.
Pro tip: Photograph each item next to a newspaper date or your phone’s date screen; store bills and certificates in email/Drive.
Add riders smartly (only what you’ll actually use)
Think of riders as toppings on a Dosa, add what you need, skip what you don’t.
- Burglary/Theft: Must-have in cities. Check if “theft without forced entry” is covered or needs an add-on.
- Electronic Breakdown: Covers internal electrical/mechanical failure of AC, fridge, TV, etc. Great if your gadgets are costly or out of warranty.
- Portable Gadgets: Laptops, cameras, high-end phones outside home, ideal if you commute/travel.
- Keys/Locks: Pays to replace locks if keys are lost/stolen. Cheap, handy, very real.
- Alternate Accommodation/Loss of Rent: If your house becomes unlivable after a covered event, this helps pay for a temporary stay (or compensates the landlord).
- Personal Liability: If a guest slips at your home and claims damages, this protects you.
Real-life example: Arjun’s phone gets snatched on the Metro. Only his portable gadget rider saved the day.
Flood, Cyclone, Earthquake, Know your zone, and make sure it’s covered
India faces STFI risks (Storm, Tempest, Flood, Inundation) and earthquakes. Coverage can vary by plan.
- Flood/Cyclone: Essential for coastal states and flood-prone cities (Chennai, Mumbai, Guwahati, etc.).
- Earthquake (Zones II–V): If you’re in Zone III/IV/V or simply don’t want surprises, add it. Quakes don’t send meeting invites.
Real-life example: In Hyderabad, a heavy cloudburst flooded ground-floor flats. Those who assumed “rain is basic” learned the hard way. Always check that flood/inundation is explicitly covered.
Pro tip: Ask your insurance agent in one line: “Is STFI and Earthquake included? If not, add it.”
Claims: proof talks, delays walk
Most rejected or delayed claims lack proof. Build your claim file like a mini case.
What to keep now (before any loss):
- Photos/videos of rooms and valuables
- Purchase bills, warranties, or bank/SMS proof of purchase
- Valuation certificates for jewelry/art
- Serial numbers for electronics
If something happens:
- Stay safe, then record damage as photos and short videos.
- Inform insurer immediately (24–48 hrs).
- For theft/burglary, file an FIR. Save CCTV clips if available.
- Don’t throw damaged items until the surveyor visits or approves disposal.
- Keep repair estimates/invoices neatly.
Pro tip: Create a “Home-Insurance” folder in your email/Drive. Dump bills, photos, valuations there. Future-you will be grateful.
Quick buying checklist
- Policy type: Building + Contents (owners) / Contents only (tenants)
- Sum insured: Building at rebuild cost; Contents from room-wise inventory
- Basis: Reinstatement (New-for-Old) wherever possible
- Underinsurance: Avoid declaring full values (remember the average clause)
- High-value items: All-Risk + scheduled with bills/valuations
- Riders: Burglary/Theft, Electronic Breakdown, Portable Gadgets, Keys/Locks, Alt Accommodation, Personal Liability (as needed)
- Perils: Confirm STFI + Earthquake (Zone II–V) are included
- Excess/ Deductible: Know what you’ll pay per claim
- Exclusions: Read the list—wear & tear, slow seepage, unattended carelessness may be excluded
- Claims steps: Save insurer hotline, keep proofs ready, file FIR/CCTV where needed
Closing: Insurance that behaves when life misbehaves
Think of home insurance like a seatbelt. Boring until it isn’t. Split your cover right, choose New-for-Old, protect valuables with All-Risk, add only useful riders, ensure flood/cyclone/earthquake are on, and keep proofs handy. Do this, and when the unexpected knocks, you’ll handle it with calm and a paid claim.
