Home insurance in India: What to check before buying or renewing a policy

Home insurance can protect homeowners against damage to their property and belongings, but the extent of coverage depends on the policy terms, exclusions and sum insured.

Understanding these details is important when reviewing or renewing a policy, particularly in cities exposed to flooding and other extreme weather events.

Shashi Kant Dahuja, ED and Chief Underwriting Officer at Shriram General Insurance, said standard home insurance covers specified risks such as fire, lightning, storms, cyclones, floods and inundation, subject to policy conditions. Household contents are covered if the policyholder has opted for that protection.

Gisha George, President – Product & Underwriting, Commercial Lines & Reinsurance at Liberty General Insurance, said the Bharat Griha Raksha policy, introduced in April 2021 as the standard retail home insurance product, covers the building and contents against specified perils, including floods, cyclones, earthquakes and landslides.

What damage may be excluded?

Coverage for floods does not automatically extend to every type of water damage. Wear and tear, poor maintenance, pre-existing damage, mould, gradual deterioration and prolonged seepage are generally excluded, depending on the policy wording.

George said claims can depend on whether the damage resulted from a sudden insured event or developed gradually over time. Losses such as food spoilage during a power outage and a decline in property value may also be excluded. Homeowners should check whether additional expenses, such as alternative accommodation or loss of rent, are covered.

Why contents insurance matters

Insuring a home’s structure does not necessarily protect furniture, appliances, electronics and other personal belongings. Homeowners should check whether their policy includes contents cover and whether a housing society’s insurance extends to individual flats’ belongings.

Dahuja advised policyholders to assess the value of both the building and its contents before deciding on the cover required.

How should you calculate the sum insured?

The contents sum insured should reflect the estimated cost of replacing belongings, subject to the policy’s valuation terms and limits.

George recommended preparing a room-by-room inventory, checking automatic contents limits and separately declaring high-value items where required. Invoices, warranty cards and photographs can help establish ownership and support claims. The declared value should be reviewed after major purchases or renovations.

Underinsurance can leave homeowners with inadequate protection, Dahuja said.

What should you check before renewing home insurance?

Before buying or renewing a policy, homeowners should:

• Check the coverage: Confirm whether floods, inundation and other relevant perils are included.
• Read the exclusions: Understand the conditions relating to seepage, damp and maintenance-related damage.
• Review deductibles: Check how much of a claim the policyholder must pay and whether different deductibles apply to specific risks.
• Assess the sum insured: Ensure the building and contents are adequately valued.
• Check additional benefits: Verify whether alternative accommodation, loss of rent and protection for valuables are included or require add-ons.
• Understand claim requirements: Review notification deadlines, documentation requirements and the process for inspection.

If damage occurs, homeowners should photograph the affected property, retain relevant ownership documents and notify the insurer within the stipulated timeline. Damaged items should be preserved for inspection where practicable, without compromising safety.

The key is to look beyond the policy’s headline coverage and understand its exclusions, limits and claim conditions before a loss occurs.