Home Owners Insurance FAQs

Home Owners Insurance FAQs

What is homeowners insurance, and who should buy it?

Homeowners is one of the most popular forms of personal insurance on the market. The typical homeowners policy has two main sections: Section I covers your property, and Section II provides personal liability coverage. Almost anyone who owns or leases property should have this type of insurance.

What is the difference between an "all risks" policy and a "named perils" policy?

A named perils policy covers losses that are due to only those perils listed in the policy. Those typically include fire, windstorm, hail, and other physical losses. An all risks policy covers losses that are due to any peril except those specifically excluded in the policy. An all risks policy provides broader protection than a named perils policy.

What does home owners insurance protect against?

Homeowner's insurance will cover replacing your home and personal property up to certain limits. The policies cover :-

Damage to your home and other structures
Loss or damage to your personal possessions,
Coverage of bodily injury to persons injured on your property
Medical payments for injuries that occur in an accident on your property

If there is a fire in the house and the tenant incur losses, is the landlord or the tenant responsible for the losses?

The tenant is and they should get a renter's insurance. If you own the building or house, you may purchase the householders' insurance policy for it. In case your tenants want to insure their belongings, they have to purchase a separate policy for their belongings.

What are the various covers included in houseowners policy?

The various damages covered include

Natural calamities, such as fire, lightning, earthquake, landslide, rockslide, flood, inundation, storm, tempest, typhoon, hurricane, tornado, or cyclone
Man-made calamities, such as domestic gas explosions, overflow and bursting of water tank or pipes, damage caused by aircrafts, riots, strikes, malicious or terrorist acts

How is the value of the house set?

The va;lue of the house is calculated on what it would cost to rebuild your house. This is calculated as the area of your house multiplied by the rate of construction per square feet, as on the date of purchasing the policy.

What are the tax exemptions available?

Currently, income tax regulations do not offer any tax exemptions on the premium paid on householders' insurance policies.