The sum insured for the structure of the house is based on the Reinstatement Value, which is the reconstruction value in terms of construction cost. This however would not include the cost of the land. The reconstruction cost is based on two parameters which are mentioned below:
The owner / tenant would have to multiply the built up area of the house with the cost of construction to arrives at the reconstruction cost. Reconstruction Cost = Built – up area of the house * Cost of construction in your area/ locality.
Contents/ Valuables : The sum insured for Contents/ Valuables is based on the market value. Market Value would mean he current cost minus an allowance for depreciation, in the event of loss/damage. For jewellery, depreciation will need to be deducted when arriving at the SI. Once the sum insured for the structure as well as contents has been computed, simply choose the closest sum insured value and arrive at the premium.
|Sum insured limit
- Option I: Agreed value
- Option II: Reinstatement Value basis
- Option III: Indemnity basis (with depreciation)
- Option I: Value as per Ready
Reckoner or Reg. Agreement
value whichever is higher
- Option II: Cost of
- Option III: Cost of
|Contents excluding portable equipment
- Option I: Replacement Value
- Option II: Indemnity basis (with
- Cover available upto 10yrs old
- Extension for Higher SI is
available (with condition of avg
for entire content SI)
- 10% of Agreed value or 50% of
reinstate SI or indemnity SI
upto max of 10 lacs (contents
only policies) with waiver of
condition of avg.
- There is a provision of Auto-
reinstatement of SI after the
|Jewellery & Valuables
- Market Value basis
- Extension for worldwide
coverage is available
|The maximum SI will be 20% of Contents SI
|Painting, Curios & Work of Art
|Based on the Valuation Report of Government approved valuer
- SI will be on Agreed value
- The maximum SI will be 20%
of Contents SI
|Portable Electronic Equipment
- Cover available upto 10 yrs old
- Extension option for Worldwide
|Sum Insured shall be equal to the cost of replacement of the insured property by new property of the same kind and same capacity.
|Escalation option for Building
|It shall allow automatic regular increase in the Sum insured throughout the period of the policy.
|Escalation up to 25% on base SI
|Rent for Alternative Accommodation
|It pays for alternative accommodation following total loss, maximum upto 24 months.
- Option I: 0.5% of building sum
- Option II: 0.3% of building sum
|The period of indemnity is limited to 15 days
|Sum insured limited upto 0.05% of Building Sum Insured, maximum upto 15000/- per day
|Loss of Rent
|This covers up to a maximum period selected by insured subject to a maximum period of 24 months
|The Company's liability shall not exceed 0.3% of Building SI subject to maximum of Rs. 30,000/- as specified in the Schedule.
|Expenses of shifting to Alternate Accommodation
|This covers actual expenses incurred by the insured for packing, unpacking and transportation of the insured's possessions/ dwelling contents to the alternative accommodation
|The Company's liability shall not exceed 0.5% of Building SI subject to maximum of Rs. 50,000/- as specified in the schedule
|It covers expenses incurred by the insured towards emergency purchases
|Up to Rs. 20000/- or the actual whichever is less.
|Keys and Locks Replacement Cover
|Covers cost of replacing any such lock with one of similar quality
|Upto maximum of Rs. 20,000/- or the actual whichever is less
|Public Liability Cover
|Covers those sums that the insured becomes legally liable to pay, including litigation expenses
|Upto the sum insured as specified in the schedule
|Brokerage for Alternate Accommodation
|The brokerage payment towards alternative accommodation on rent.
|Actual expenses incurred by the insured up to maximum of Rs. 50,000/- or one month rent whichever is less
- Section I: Loss or Damage
- Section II: Liability to Third
|Replacement cost up to the limit of the sum insured set against the item in the policy schedule