How To Apply For A PAN Card

How To Apply For A PAN Card: Indians use the Permanent Account Number (PAN) Card as an identification document for different purposes. Many PAN cardholders neither work nor file tax returns but have the PAN card solely for the purpose of identification.

Applying for a PAN card is very simple. You can do it online or via a govt. app. Want to know how? Find out here!

Applying For PAN

The Income Tax department has simplified the process of applying for a PAN card. While the PAN card could earlier be obtained only through middlemen, who were usually Chartered Accountants, today the PAN card can be easily applied for online. This is an easy and user-friendly process, with clear instructions and guidelines given at every stage.

Here are the steps involved in applying for a PAN card should you wish to do it online �

1. Visit the website of the Tax Information Network � https://tin.tin.nsdl.com/pan/.
2. This is the home page of the Income Tax department and offers different services such as applying for a new PAN, tracking the status of tax refund and online PAN verification. The applicant can choose the service that they want.
3. To apply for a new PAN, Form 49A will need to be used. Form 49A can be filled online by visiting https://www.tin-nsdl.com/services/pan/pan-index.html.

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1. Fill in the details and submit the form online. After the form is submitted successfully, an acknowledgment is displayed. You will get a unique 15 digit acknowledgment number. This acknowledgment must be saved and printed.
2. The acknowledgment form must be sent to the Income Tax department. Before sending this, you will need to attach a few documents along with the acknowledgment form. This includes proof of address and proof of identity. Your name which is mentioned in these documents should be in the same format as that on the PAN application form. Keep this in mind when you are filling Form 49A.
3. You must also affix two recent color photographs on the acknowledgment form in the applicable space. Signatures have to be made where indicated. The photograph you affix should be clear and a recent one, as this is the same photograph which will be used on your PAN card.

The steps above are simple and self-explanatory. There are adequate instructions, guidelines and a list of do�s and don�ts on the website that will guide you in the PAN application process.

How to track your application

The application status can be tracked online after the acknowledgment has been sent. Payments made can also be tracked online. NSDL also offers the facility of tracking by writing to them at their address or by sending an SMS to 57575 by typing SMS NSDLPAN <space> Acknowledgement No.

The process of changing or correcting the details of your existing PAN card is similar to the process of applying for a new PAN card. Fill in the PAN Change Request Form online and follow the steps above. This PAN change request section also has separate guidelines, instructions and do�s and don�ts.

Now you no longer have to depend on someone else to get a PAN card for yourself or anyone you know. Simply follow the steps above and you�re all set.

Tips To Choose The Best Health Insurance

Tips To Choose The Best Health Insurance: Cheap is a very relative term, especially when it comes to Health Insurance. It�s no secret that hospitals today charge room tariffs that can make 5-star hotels seem like budget hotels in comparison! And, God forbid if a small surgery is involved, your purse will feel lighter by a neat lakh or two.

Medical costs have skyrocketed so much in the recent times that it won�t be a surprise if ISRO and other space research communities start considering space technology to be cheaper. Your only option against such meteoric inflation in healthcare expenses is a Health Insurance plan.

But, choosing the right plan is as important as getting one. So, how do you zero in on the best plan? Here are the questions you should be asking yourself.

Am I adequately covered?

Getting adequate coverage is the first thing you need to consider. As you know, the more the sum assured, the more the premium will be. However, paying a slightly higher premium is better than saving on premium but paying ten times more for hospitalisation expenses. Moreover, the premium paid for Health Insurance brings you tax benefits of up to Rs. 75,000. This will apply if you buy plans for the whole family, including your parents.

So, what is the ideal sum assured? There are several parameters to consider, but as a rule of thumb, if you are young and healthy, a sum assured of Rs.5 lakhs will be a good start. As you renew the policies, take advantage of the No Claim Bonus and increase your sum assured proportionately.

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Adequate cover and complete cover for your healthcare expenses are two different things. An optimum sum assured covers you adequately, whereas complete coverage includes other things that come within the ambit of medical expenses. This will include things like pre- and post-hospitalisation expenses, hospital room charges, nursing expenses, ambulance charges, etc.Am I completely covered?

Check if the plan you choose covers many of the related expenses. It may provide sufficient coverage in terms of the amount of sum assured but may not provide for the right kind of expenses. Compare across plans to see what expenses are provided for, assuming the sum assured is the same.

Who is the best provider?

This is a million dollar question or rather a crorepati question. IRDA, insurance regulator in India, has made it mandatory to have uniformity in case of health policies. This makes it easy to choose between options in the market. Yet, there are several parameters to consider when you choose an insurance provider.

The Claim Settlement Ratio (CSR) of the company is an important parameter. This gives you an idea of the probability of your claims being approved by the insurance company when you file a claim.

Next is the list of network hospitals in which the insurance company offers the cashless facility. Having the option of cashless reimbursement can make all the difference between quick and easy settlements as opposed to the tedious process of paying the hospitalisation expenses yourself, then submitting all those bills to the insurance provider and then waiting for them to respond.

Finally, there can be slight variations in the premiums of different insurance companies, so do your research to identify providers with lower premiums and the best features.

There are too many complex plans. How do I choose?

Apart from the basic indemnity plans, there are some benefit plans that can potentially confuse buyers. They include surgical protection plans, cardiac care covers, cancer care cover etc. that offer a higher coverage for specified conditions. The premium of such plans will be lower; about one-third of an indemnity plan, but one can make the best use of them only if an expense related to those specific conditions arises.

For instance, since surgeries are the most money-draining part of medical treatments, getting a special cover for it and a lower overall premium is the right thing to do. But, if you decide to opt for them, take them in addition to a basic plan, as most of them might not cover other regular hospital expenses.

Should I go for any riders?

Riders are worth considering if you are likely to undergo any medical treatments. Maternity cover riders, pre-existing disease cover, and critical illness riders are three of the most popular riders in Health Insurance. While the first two can be opted for depending upon your specific condition, you can give the third one a miss if you have a high sum insured for your basic plan.

Disease-specific plans such as a diabetic care plan are an alternative to critical illness riders. But, they come with a higher premium and are not sold as standard covers. Therefore, they can be included as additional protection only if required.

Should I opt for cover for treatments abroad?

Many policies today provide cover for treatment coverage abroad. Coverage for treatments abroad will mean a higher premium. But remember, it is applicable only when you travel abroad. And moreover, in most cases, you could take a Travel Insurance policy which would cover your hospital expenses abroad. Therefore, you can save on premium cost.

Here�s a quick cheat-sheet for buying Health Insurance:

• Go for a basic indemnity policy first. Other plans such as critical illness and disease-specific plans can be your next level of protection.
• Read the policy inclusions and exclusions carefully.
• Check the individual expense limits for different heads like hospital room rent, doctor�s fee etc. to see what is covered.
• Find out if there are any treatment-specific caps that limit the amount you can claim for some treatments such as those for pre-existing diseases.
• Check for the portability of the plan � whether the policy allows changing the provider without losing continuity benefits.
• As you grow older or as the number of dependents increases, you may need to increase your sum assured.
• Most importantly, buy plans as early as possible to take advantage of low premiums.

Things To Keep In Mind Before Buying Auto Insurance

Things To Keep In Mind Before Buying Auto Insurance: Buying an automobile holds significance as you own it after spending a large chunk of your hard-earned money. It is, thus, an investment which you would help you cover the cost of repair and accident. Auto insurance is an integral part of owning a vehicle so make sure you carry out the necessary research before you zero in on a product. Insurance is largely picked on the basis of the size of the premium and also the cover it provides.

Here are a few things you must keep in mind before buying auto insurance:

Types of Insurance � There are two types of auto insurance policies. One being third-party insurance, which is compulsory in India and the other is a comprehensive insurance policy. The third-party insurance is typically provided by dealers and the premium is factored in the price of the vehicle.

The comprehensive insurance, on the other hand, takes care of third party liabilities, personal accidents, and thefts. Although the comprehensive policy is expensive compared to the compulsory third-party liability, it is worth every extra penny.

Add-ons � If you are purchasing insurance through an agent, there is a fair chance that he/ she would try to sell you additional coverage. Additional coverage would mean optimal protection if you purchase them based on your requirement.

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For example, a depreciation waiver cover would allow you to claim the entire amount of auto parts to be replaced. So, do a review of the list of add-ons on the Car Insurance policy and pick ones that are beneficial to you.

No-Claim Bonus (NCB) � The No-Claim Bonus feature in auto insurance allows you a discount on a certain year�s premium if no claims were made in the previous year. The NCB rate offered is same for all the insurance providers. The discount for car and two-wheeler insurance policies can rise up to 50 percent.

If you continue with your policy without breaking it for years, the No-Claim Bonuses would get accumulated to attain a substantial size.

Voluntary Excess � This is the amount of money you would pay from your pocket without filing a claim. By choosing this option, you would be decreasing the premium amount by around 35%, as on the event of a claim, the insurer would not have to pay as much. The amount chosen as voluntary excess should not be more than the No-Claims Bonus sum that you are entitled to in the following year.

Research � Don�t give a dealer�s offer just because he is pushing too hard. Look at the products available in the market to find the best offers. You can compare products online with just a few clicks. Buying a policy online can help you save money.

Exclusions in Auto Insurance

Instances for which you cannot claim auto insurance include drunken driving or driving under the influence of drugs. Any deliberate loss or damage is not covered. Even if your car is insured, you could face challenges in getting your claim accepted if your car is driven by an uninsured person. Damage caused by war or nuclear attack is not covered by auto insurance. Regular wear and tear, and ageing of the car are also not covered.

Before zeroing in on a product, don�t forget to run your research or get your doubts clarified from auto insurance agents.

Best Car Insurance Plans In India

Best Car Insurance Plans In India: You have no choice but to get Car Insurance if you have a car. However, when it comes to buying Car Insurance, there are plenty of options.

What�s the cover?

As you know, insurance is a protection against financial loss that might arise from the happening of an unexpected event. A person can avail this protection by buying a policy and paying a premium for it to an insurance company. The primary purpose of Car Insurance is to provide financial protection to the policyholder against losses incurred due to any physical damages to their vehicle.

Losses and damages to your car under a Car Insurance policy may include:

1. Loss or damage to your vehicle due to natural calamities
   Example: Fire, explosion, lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide etc.
2. Loss or damage to your vehicle due to man-made calamities 
   Example: Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, any damage in transit by road, rail, inland waterway.
3. Personal accident cover
   Coverage for the individual driver of the vehicle while travelling, mounting or dismounting from the car.
4. Third party legal liability
   Protection against legal liability due to accidental damages resulting in the permanent injury or death of a person, and damage caused to the surrounding property. A Third Party Liability cover is mandatory in India under the Motor Vehicles Act.

A comprehensive Car Insurance policy is one which covers all of the above. With the vast number of Car Insurance plans available in the market, which one should you opt for? Here are some popular plans.

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1. Bharti Axa Car Insurance

Bharti Axa Car Insurance covers a 2,500+ network of cashless garages and has a 24/7 claim settlement service. This will help you get those claims settled quickly. The Claim Settlement Ratio (CSR) of this insurance company is 89.09%, which is quite high when compared to the average of 78% for the industry.

Bharti Axa has two covers. One is the basic cover and another is the basic plus roadside assistance cover. The basic cover will have third party liability cover, personal accident cover and cover against calamities.

The basic plus roadside assistance cover will include all the features under basic and will also provide services such as on-road repairs, towing services, change of tyres, emergency fuel and lost keys.

Bharti Axa also offers add-on covers such as depreciation cover. This cover lasts for 5 years. You also get a No Claim Bonus (NCB) of about 50% when you renew the policy.

2. National Insurance Car Insurance

Being a government enterprise, National Insurance does offer cashless garages and has a 24/7 roadside assistance and claim settlement service. The CSR of this insurance company is 84.16% and just like other insurers National Insurance provides third-party liability cover of up to Rs. 7.5 lakhs.

National Insurance has two covers. One is the liability-only cover and another is the package cover. The liability-only cover will ensure only against damages to a third party. It will not cover damages to your vehicle. The package cover will have third party liability cover, damages to your vehicle and damages due to calamities (natural or man-made). National Insurance will provide NCB but the discounts will be higher if you opt for higher voluntary excess.

3. HDFC ERGO Car Insurance

With HDFC ERGO you get a network of 5,000+ authorised cashless garages and 24/7 claim settlement service. This company has been assigned �iAAA�rating by ICRA indicating the highest claim paying ability. HDFC ERGO has a CSR of 89.43%, making it a popular choice.

HDFC ERGO has many plans to suit your requirements. These include the Silver plan, Gold plan, Platinum plan and Titanium plan. While all plans come with zero depreciation cover, the gold plan will give downtime protection. The platinum and titanium plans give customers engine and gearbox protection, and NCB protection. The Titanium plan will also cover the cost of consumables.

4. Royal Sundaram Car Insurance

Royal Sundaram provides you with 3,300+ cashless garages across India, a free roadside assistance kit and insurance cover that is equal to 100% of the invoice price. The company also provides 24/7 roadside assistance and towing assistance.

The CSR of this company is 82.78%. Royal Sundaram provides NCB to its customers. You can also get a 5% discount on Own Damage cover if you are a member of the Automobile Association of India.

Royal Sundaram provides both basic as well as roadside assistance cover. The basic cover will include cover for own damages, third-party liability and personal accident cover. If you opt for a voluntary deductible of Rs. 15,000, you will get a 35% discount on the premium for Own Damage cover.

How Car Insurance Work In India?

How Car Insurance Work In India? With the process of claiming Car Insurance getting better, it is now possible to get your vehicle repaired and ask the insurer to pay for it using your insurance policy. Here�s all you need to know.

The first thing you must do is to go through the insurance company�s preferred garages and get the repairs done at one of them. The insurance company will then pay for the repairs minus the items not covered under the policy, which will have to be paid by the owner of the vehicle, which is you. This is known as a cashless claim.

Types of Vehicle Insurances

There are two types of Vehicle Insurances � Comprehensive and Third Party

Comprehensive Insurance

As the name suggests, a comprehensive insurance plan helps ensure the vehicle against any risk arising out of theft or damage to the vehicle, death of the driver and/or passengers in the vehicle during an accident, and damage caused by the vehicle to other people or property.

Coverage with Comprehensive Insurance

Comprehensive Insurance ensures the vehicle against:

Natural calamities

E.g. Earthquakes, floods, typhoons etc.

Man-made calamities

E.g. Burglary, thefts, riots, strikes etc.

Personal accident cover

Provides personal accident cover for the individual owner-driver and passengers of the insured vehicle while travelling in, mounting, or dismounting from the vehicle.

Third Party Insurance

Third Party insurance only covers the damage done by your vehicle to other vehicle or property. It does not cover accidents, theft or damage to the vehicle.

Read Also Top 5 Car Insurance Companies In India

Coverage using Third Party Insurance

Third party legal liability coverage protects you against legal liability arising due to accidental damages, such as:

• Any permanent injury/death of a person
• Any damage caused to the property
• Caused while anyone is driving the insured vehicle

Both kinds of insurance covers are valid for only a year. They need to be renewed every year. The premium of the insurance depends on certain parameters like vehicle classification, value etc.

Car Insurance Clauses

There are some clauses which are a part of your Car Insurance that you need to be aware of. You won�t be able to claim for any damages occurring to the insured vehicle because of:

• Wear & tear or general ageing of the vehicle
• Depreciation or any consequential loss
• Mechanical/electrical breakdown
• Wear and tear of consumables like tires and tubes
• The insured vehicle being used for purposes other than mentioned in the limitations of usage in the insurance agreement
• A vehicle being used outside the geographical boundaries of India
• A person driving any vehicle without a valid license
• A person driving the vehicle under the influence of drugs or liquor
• Loss/damage encountered due to war, mutiny or nuclear risk

Claiming Insurance

In case you are involved in an accident or you accidentally bang your car somewhere which causes some damages to your vehicle, you can claim insurance.

To claim insurance, you need to:

• Note the licence plate number of the other vehicle involved in the accident (if any)
• Note names and contact numbers of witnesses (if any)
• Call the insurance company and file a claim.
• Make a note of the claim reference number given and the list of documents required for claim processing.
• Check whether the insurance company has a preferred garage list and make a note of the same.
• File an FIR at the nearest police station in case of property damage, bodily injury, theft, or major damages.
• Submit the documents to the insurance company�s representative and verify it with the originals.
• Make any additional payments required to the garage if the insurance company does not cover the complete repair expenses.

Advantages Of Cashless Claims

• Responsibility lies with the insurance company
• The surveyor would take the car to the garage, get it repaired and return it back to the owner
• The company� garage network is generally reliable
• The service provided by them is much better than any other local garage

Disadvantages Of Cashless Claims

• A lot of formalities need to be followed before any action is taken
• Often, the preparations are delayed since the surveyor may do the complete inspection before taking any decisions
• The garage, which the insurance company chooses might be expensive and since the owner has to pay some percentage of the expenses, he may end up shelling out more money than estimated.

Advantages Of Reimbursement Claims

• You can get your car repaired at your preferred garage by your trustworthy mechanic
• Immediate action can be taken just after the inspection
• The expenses may be within your budget
• You may also get to repair other parts of the vehicle which were not damaged at the time of an accident, if required

Disadvantages Of Reimbursement Claims

• Responsibility is entirely yours
• Repairs done by local garages may not be dependable

Now that you know all the necessary details about Car Insurance plans, it�s time to secure the car of your dreams using the cover it deserves.

How Can You Save Money On Home Insurance

How Can You Save Money On Home Insurance: Home insurance is a mandatory requirement put forward by money lenders in case of the purchase or construction of a new house. Now, there are multiple factors on which your insurance premium rates depend on the age of your house, its location, type of construction, etc. There are also some personal factors which come into play which could also affect your premium rates like whether or not the applicant is a smoker, the applicant�s credit history, etc.

Home insurance premiums aren�t written in stone and can go up or down based on various factors. Here are the top 10 ways which can help you save big on your home insurance premium rates.

1. Maintain a Good Credit Score

   More and more insurers are now taking into consideration an applicant�s credit history when it comes to deciding upon the insurance premium. A healthy credit score can easily help cut down your insurance premium costs while an awry credit score could harm your chances of getting an insurance policy altogether. To improve your credit score, try keeping your credit balances as low as possible, ensure timely bill payment, keep a track of your credit score and report any errors to the concerned company authorities and don�t avail credit in excess of what you do need.

2. Raise the Amount of Your Deductible

   In insurance terms, the deductible is the amount of money which the policyholder must pay for a loss before the insurance company begins to pay for the claim. So, the higher your premium amount, the lower will your insurance premium be. Now, insurance companies may sometimes have separate deductible amounts depending on the kind/nature of the damage like earthquake, hail storms, fire, etc. Insurance companies to recommend customers to keep their deductible amount high, in order to save on future premium costs.

Read Also 5 Best Single-Premium Insurance Plans in India

1. Bundle Insurance Policies

   You�re out to buy an auto insurance policy being sold by a certain company. The same company is also selling a home insurance policy, the terms of which are quite favourable and suited to your needs. In such cases, it might be a smart move to purchase both the policies from the same insurer as you are likely to get a discount on your premium. However, to ensure that this arrangement of combined pricing is lower than the cost of purchasing two policies from separate insurers.

2. Enquire About Discounts

   It often happens that insurance companies offer discounts which aren�t adequately advertised. For instance, some insurance companies offer discounts to senior citizens or retired applicants, as they are more likely to stay at home, reducing the risk of burglary. Similarly, professional associations and employers also offer group insurance policies for their employees or members, which can be availed at discounted rates.

3. The Newer The House, The Better

   Just like auto insurance, premium rates are affected by the age of the commodity, in this case, your house. Insurance companies are far more likely to offer you lower premium rates if the house in question is new. The logic working behind this is that a new house is less likely to have problems when it comes to the plumbing, heating or electrical systems. Not only that, but the structure will also be in a better shape.

Tips to Get Yourself An Effective Home Insurance Policy

 Tips to Get Yourself An Effective Home Insurance Policy: Purchasing or constructing a house, though initially quite stressful, can be one of the best investment decisions one can make. House insurance is an automatic addition which is a necessity to protect your new house from any potential risks or dangers. With a house comes house insurance. However, purchasing a home insurance policy also means that you are adding an expense to your future monthly budget by way of insurance premiums.

Compare � Comparison shopping is something that you should do before buying anything, not just insurance policies. When it comes to Home Insurance, different policies will offer different benefits. Compare different policies and their features, and choose the one that best fits your needs.

Understand your policy thoroughly � Read your policy documents without fail. You need to know every detail about your policy to avoid surprises later.

Be in touch with your insurer � Got any queries or doubts about your Home Insurance policy?Don�t stick to your assumptions, instead get in touch with your insurer and clear them.

Buy add-on covers if necessary � There are a lot of add-ons available with Home Insurance policies. You can invest in them if necessary. For example, if you live in a neighbourhood where theft is common, you can buy an additional cover for your belongings against theft and burglary.

Amplify your policy � Certain scenarios will require you to make changes to your existing insurance policy. For example, if you plan to expand your property or buy costly interior decors for your home, you need to include these in your policy accordingly.

Raise your claims on time � There is a time limit on raising claims after an event (which is covered) has occurred. If you do not file your claim within the stipulated time, then you�ll miss out on any applicable benefits. This is why we stress on reading your policy documents thoroughly!

Read Also Protect Home From Natural Calamities With Home Insurance

Raise the Amount of Your Deductible

In insurance terms, the deductible is the amount of money which the policyholder must pay for a loss before the insurance company begins to pay for the claim. So, the higher your premium amount, the lower will your insurance premium be. Now, insurance companies may sometimes have separate deductible amounts depending on the kind/nature of the damage like earthquake, hail storms, fire, etc. Insurance companies to recommend customers to keep their deductible amount high, in order to save on future premium costs.

Bundle Insurance Policies

You�re out to buy an auto insurance policy being sold by a certain company. The same company is also selling a home insurance policy, the terms of which are quite favourable and suited to your needs. In such cases, it might be a smart move to purchase both the policies from the same insurer as you are likely to get a discount on your premium. However, to ensure that this arrangement of combined pricing is lower than the cost of purchasing two policies from separate insurers.

Don�t Skim on Research

Purchasing a home insurance policy is quite a task, with the rising number of insurance providers now offering lucrative options all around. Take your time to go around and research on the various insurance providers offering home insurance policies. Go online, check for websites, user�s feedback, ratings, for different policies. Offline, you could check with people who have purchased home insurance and could give you valuable feedback, check with independent insurance agents who can provide you with policy deals from multiple insurers, contact the branch office of the insurance company itself and request for a quote. When you�ve done your research, you will get a fair idea about the range of services/covers being provided by various insurance providers, along with an idea about how much your overall insurance package is likely to cost you as well.

Now that you know the importance of a Home Insurance cover, maybe it�s time for you to get one for your home. Unfortunately, we do not offer Home Insurance as of now, but you could explore our other products.

We Should Buy Home Insurance Or Not?

We Should Buy Home Insurance Or Not?Over the past few years, there has been an increase in the number of homes being bought across the country. The property market has been pretty ripe for investments, and folks across the nation jumped at the opportunity. As an icing on the cake, most of the financial institutions offered attractive Home Loans to ease the burden of finances on home buyers too. Although there was an increase in the number of home buyers, there was hardly a handful among them who purchased Home Insurance.

We Should Buy Home Insurance Or Not?

While half of the population has no clue about Home Insurance, the ones that do know are under the impression that they�ll have to pay high premiums and will be subject to a complex documentation and claims process.

Stella D�Souza, a mid-level employee in a private firm, said, �I never knew there was a something called a Home Insurance. But, luckily, my husband knew about it. And today, we�re glad we insured our home. After all, one can never predict natural hazards, right!�

Of course, we completely agree with Stella! With the frequent climate changes and out-of-the-blue occurrences of natural calamities like the Chennai floods, cyclone Vardah, or the earthquake in North India, it has become all the more important to buy Home Insurance along with your new home. With an insurance in place, restoring damaged property from calamities won�t be a financial burden for you.

What About The Cost?

The cost attached to a Home Insurance plan depends on a number of factors. The premium you pay will depend on the sum insured. The sum insured will be dependent on the cost of construction of the property and its built-up area. The cost of construction will take into consideration the quality of construction and the materials used and the locality in which the property stands.

A comprehensive Home Insurance policy is essential to secure your home against unforeseen events, no matter the cost. You should opt for a scheme that offers adequate coverage for your home and belongings. If you need help calculating how much coverage you�ll require for your home, there are quite a few Home Insurance calculators available online.

While deducing the sum insured, remember that it is important to value all your belongings along with your property. You�ll need to get as accurate as possible with your calculations. Wondering why? If you under-insure, the insurance company will pay only your sum insured even if the property damage cost was higher. On the other hand, if you over-insure, the insurance company will pay only the property damage cost.

For instance, let�s assume that you bought a cover of Rs. 75 lakh. On an unlikely event (which is covered), your property gets damaged and the reinstatement cost is estimated to be Rs. 35 lakh. Your insurance company will pay you only Rs. 35 lakh (and not Rs. 75 lakh).

Read Also Protect Home From Natural Calamities With Home Insurance

What Is Covered And What Is Not?

Most Home Insurance plans available cover two kinds of property damages:

Damage to the structure of your property � These plans cover only damage caused to the structure of the property. If you opt for this plan, you can claim the construction cost if any damage is caused to your property by any of the unlikely events mentioned in the policy document.

Damage to contents of your property � These plans offer compensation for any damage caused to the contents of your property such as the furniture, appliances, jewellery, etc. due to any of the events mentioned in the policy document.

There are quite a lot of comprehensive policies in the market that provide coverage for both kinds of damages mentioned above. However, such policies are available only for homeowners. If you�re a tenant, you can purchase insurance cover only for your belongings.

In addition to the covers mentioned above, there are a lot of add-on covers available too. Some of the common add-on covers are rent cover, terrorism cover, and burglary/theft cover. Arent cover helps you with rent expenses when you�re staying in an alternative accommodation due to repair work. A terrorism cover caters to damages caused by structure and contents of your property due to terrorist acts. And a burglary/theft cover, as the name suggests, caters to the damages caused by structure or contents due to theft or burglary.

Now let us talk about what�s not included in Home Insurance plans. Although the policy document will contain all the exclusions, here are some of the common exclusions found in Home Insurance policies:

• Any damage caused due to your negligence or any wilful damage caused to the property and its contents will not be covered
• In case you have not disclosed details or have provided wrong details about the property and its contents, the policy will not cover the same
• Any pre-existing damages to the property or its contents will not be covered by the policy
• If there are any manufacturing defects in the contents, the policy will not cover such defects

The above-listed exclusions are some of the common ones that we have come across. However, please refer to your policy�s documents to know what�s not included in the policy.

How To Make A Claim

First and foremost, you need to inform your insurance company about the destruction caused by your property or its contents. Usually, there is a time limit within which you have to file your claim, so don�t delay.

You�ll be required to fill up a claim form. Ensure that you provide correct information and include all details on the claim form. The insurance company will initiate the claim process only after they receive your claim form. Simple, isn�t it?

Why You Should Ensure Your Home

Here are a few reasons why it makes sense to buy a Home Insurance policy:

Financial protection � A Home Insurance policy provides coverage against calamities, both natural and man-made, like fires, earthquakes, floods, vandalism, etc. Cyclone Vardah had left behind a trail of destruction in Chennai and those who didn�t ensure their homes had to spend huge amounts to repair the damages.

Protection for contents � With Home Insurance, you can protect your personal belongings and valuables against thefts and calamities. There are many covers and add-ons available to safeguard all the contents of your property including furniture, electronics, pieces of art, etc.

Temporary expenses � In the case of any calamities, you�ll have to temporarily shift to a different residence while rebuilding or renovating your property. Home Insurance will cover the rent expenses if you temporarily shift to another apartment or house.