Why The Woman Of The House Must Carefully Pick Property Insurance

The women of a household are generally consulted at every stage, when there is a property purchase involved. From providing money-saving insights to extending monetary assistance, women often did all this and more, quite efficiently. They also offer suggestions that women alone are capable of making, using their natural instinct to understand things. Its pertinent to mention here that this is not a feminist remark, made only to impress you. Researches are done in this regard testify that to be a fact. Researchers define this 'instinct' as the brain's ability to draw on internal and external cues in making quick and important decisions.

Make no mistake, menfolk are acutely aware of women's skills and try to make the most of it while making crucial decisions. The question for women is, are you using this ability to the best of your advantage? Maybe not!

As soon as the initial work is sorted (the unit that has to be bought has been picked; the bank has accepted the loan application; the payment to the seller has been made), you indulge yourself in planning the décor of your future home. In all this hustle-bustle and excitement, you may be missing a small but quite significant detail. Your husband tells you that your lender is also offering you property insurance. This this arrangement involves safety, your natural instinct to protect your family is firmly evoked and you immediately offer to sign any paper you ought to, to secure this safety guard. However, you may have given your approval to the whole thing without giving it much thought.

While matters related to property insurance must be understood well before a buyer picks one, the woman of the house must read the policy papers even more carefully. While a general policy protects the asset in question, a carefully picked one will guard the assets lying within the asset.

What generally goes on?

According to an Insurance Regulatory Authority of India handbook, the most popular property insurance is the standard fire insurance policy, which offers protection against 'any unforeseen loss or damage to/destruction of property due to fire or other perils covered under the policy'. The policy also offers cover against lightning, explosion/implosion, aircraft damage, riot, strike and malicious damage, storm hurricane, flood and inundation, impact damage, subsidence and landslide, bursting and/or overflowing of water tanks, apparatus and pipes, missile testing operations, accidental leakage from automatic sprinkler installations, bush fire, etc.

Do note that damages caused by war and warlike operations, nuclear perils, pollution or contamination, electrical/mechanical breakdown, burglary and housebreaking are not covered under the fire insurance policy. You could get losses incurred due to an earthquake, spontaneous combustion, etc., covered under this policy, by paying an additional premium.

Now, arises the question, what about your family jewels? What happens if there is a sudden vermin infestation? What happens if there is a burglary? While big threats are covered under the aforesaid policy, you cannot leave your property exposed to these threats, too. You certainly need to guard your jewellery. What policy should you take? Buying an all-risks policy is the answer to that.

Also read: Have Questions Concerning Property Insurance? Read This

What is all-risks insurance?

All risks insurance generally offers cover for jewellery and/or portable equipment, etc. On payment of an additional premium, mechanical and/or electrical/electronic breakdown extension may be offered.

While buying an all-risk policy, do be mindful of the fact that:

*Do not let the term 'all risks' confuse you. Not everything is covered under the policy. This cover is offered selectively. 

*The design of the policy may vary from company to company.

*To ensure that there are no complications in future, get your jewellery evaluated correctly. At the time of making claims, you will have to show proof of this valuation.

*As there are exclusions, read the terms and conditions carefully.

What is not covered under the all-risks policy?

Generally, the damages caused under the circumstances below are not covered under all risk policy:

*Infestations caused by moth, vermin and mildew.

*Wear and tear or repairs, dyeing or bleaching or any gradually operating cause.

*Breaking of fragile items unless caused by accident.

*Any mechanical or electrical breakdown/derangement, except due to accidental external means.

*Over winding, denting or internal damage to watches or clocks.

*Thefts from cars.

*Consequential losses.

*Legal liability.

*War perils and nuclear risks.

*Any government action.

*Any loss due to the insured's action which has contributed to increase in risk.

What if there is a burglary?

To cover your property against losses incurred due to burglary, a burglary insurance policy could be bought. This policy may also offer an extension of cover against theft. Even if the two terms are used interchangeably by most of us, theft and burglary are not the same things as far as their legal definitions go. While burglary is unlawfully breaking into a property, theft is stealing of the contents within.

While buying burglary insurance, do note that:

*Typically, a burglary insurance policy may stop protecting your property if it is not occupied beyond a certain period.

*In case you plan to stay away from the property for a long period of time, you have to inform your insurer about it.

*It is a better idea to buy a policy that covers your property at all times.

You may like to read: Do You Have You Wife On Board On Your House-Purchase Plan?