D.S.P.

M’S

K.V.PENDHARKAR COLLEGE OF

ARTS, SCIENCE AND COMMERCE

DOMBIVLI (EAST)

PROJECT REPORT ON

HOME INSURANCE

PROJECT REPORT SUBMITED IN PARTIAL FULFILLMENT

OF REQUIREMENT FOR THE DEGREE OF

B.COM (BANKING & INSURANCE)

UNIVERSITY OF MUMBAI

SUBMITED BY

ABHISHEK SINGH

108302

(T.Y B.COM BANKING & INSURANCE)

(SEMESTER-VI)

UNDER THE GUIDENCE OF

PROF.MR. OMKAR DATTAR

ACADEMIC YEAR

(2010-2011)
 CERTIFICATE

I, Mr. Omkar Dattar Here by certify that, Abhishek Singh of T.Y.B.COM

(BANKING & INSURANCE) of K.V. PENDHARKAR COLLEGE DOMBIVLI
(E) has completed this project on “Home Insurance” for VI-Semester of the
academic year 2010-2011 under my guidance. The information submitted in this
project is true and original to the best of my knowledge.

PROJECT GUIDE

PROF. OMKAR DATTAR

K.V.PENDHARKAR COLLEGE

DOMBIVLI (E)
 DECLARATION

I, Abhishek Singh studying in VI- Semester of B.com (BANKING &

INSURANCE) from K.V. Pendharkar College Dombivli (E) hereby declare that I
have completed this project on “Home Insurance” for VI-Semester in the academic
year 2010-2011 as a part of B.com (BANKING & INSURANCE) program. This
information presented through this project is true and original to best of my
knowledge.

Abhishek singh

T.Y B.com (BANKING AND INSURANCE)

K.V.Pendharkar College
 ACKNOWLEDGEMENT

This project would just not have been complete without the valuable contribution
from various people to whom I interested within the course of its completion. I
would first and foremost thank the UNIVERSITY OF MUMBAI for designing
such precise and practical course.

I thank our principal DR. MRS. MANGALA SINNARKAR who was recied
strongly on me to complete my project and without her this project would remain
just an idea, and even our vice – principal and coordinator of Banking and
Insurance department PROF. MRS.DR. S. S. DEO. I also like to thank my project
guide PROF. MR.OMKAR DATTAR for assisting my project.

I would like to express my indisputable thanks to our LIBRARY HEAD AND

STAFF who provide me timely essential information in the form of books.

Finally, I wish to thank my friends and my parents and all those people who have
lent me a helping hand in finishing this project whose names are too numerous to
mention here.
 INDEX

CHAPTER NO. CHAPTER NAME.

1. BACKGROUND OF INSURANCE SECTOR

2. INTRODUCTION OF HOME INSURANCE

3. HOME INSURANCE IN INDIA

4. TYPES OF HOME INSURANCE

5. HOME CLAIM PROCEDURE

6. TYPES OF POLICIES AS PER ISO

7. THREE WAYS TO INSURE HOME

8. COMPANIES PROVIDING HOME INSURANCE

9. TEN WAYS TO CUT THE COST OF HOME INSURANCE
10. QUESTIONAIRE AND FINDINGS
11. CONCLUSION
12. BIBLIOGRAPHY AND WEBLIOGRAPHY
 BACK GROUND OF THE INSURANCE SECTOR

Insurance is over one and one-half centuries old in India. The First general
insurance company, Titan Insurance Company Ltd., was established in
1850.Life insurance came to India from the U.K. in 1880, with the
establishment of the Oriental Life Assurance Company in Calcutta. By 1938,
the insurance market was buzzing with 176 companies--both life and non-life.
In 1956, the Government of India recognized that malpractice had entered the
management of the life insurance. Consequently, the life insurance industry
was nationalized under the Life Insurance Corporation (LIC) of India.
Although efforts were made to maintain an open market for the general
insurance industry by amending the Insurance Act of 1938 from time to time,
malpractice escalated beyond control. Thus, the general insurance industry
was nationalized in 1972.

RECENT INITIATIVES

Privatization is expected to foster competition, innovations and greater

awareness on the need for buying insurance services and variety of products.
The IRDA bill Passed by the parliament was an important development in the
field of Insurance business. The IRDA Act marks an end to the monopoly of
the government in the insurance sectors by opening it up to private players. It
gives priority in the Utilization of the policyholder’s funds for development of
society and Infrastructure sector.
 INTRODUCTION OF HOME INSURANCE

Home insurance, also commonly called hazard insurance or homeowners

insurance (often abbreviated in the real estate industry as HOI), is the type of
property insurance that covers private homes. It is an insurance policy that combines

various personal insurance protections, which can include losses occurring to one's
home, its contents, loss of its use (additional living expenses), or loss of other
personal possessions of the homeowner, as well as liability insurance for accidents
that may happen at the home. It requires that at least one of the named insured
occupies the home. The dwelling policy (DP) is similar, but used for residences
which don't qualify for various reasons, such as vacancy/non-occupancy,
seasonal/secondary residence, or age. It is a multiple line insurance, meaning that it
includes both property and liability coverage, with an indivisible premium, meaning
that a single premium is paid for all risks.

Standard forms divide coverage into several categories, and the coverage provided
is typically a percentage of Coverage A, which is. The insurance policy itself is a
lengthy contract, and names what will and what will not be paid in the case of
various events. Typically, claims due to floods, or war (whose definition typically
includes a nuclear explosion from any source) are excluded. Special insurance can be
purchased for these possibilities, including flood insurance. Insurance must be
updated to the present and existing value at whatever inflation up or down, and an
appraisal paid by the insurance company will be added on to the policy premium.
Fire insurance will require a special premium charge, plus the addition of smoke
detectors and on site fire suppression systems to qualify.

The home insurance policy is usually a term contract—a contract that is in effect
for a fixed period of time. The payment the insured makes to the insurer is called
the premium. The insured must pay the insurer the premium each term. Most
insurers charge a lower premium if it appears less likely the home will be damaged
or destroyed: for example, if the house is situated next to a fire station, if the house is
equipped with fire sprinklers and fire alarms. Perpetual insurance, which is a type of
home insurance without a fixed term, can also be obtained in certain areas.

In the United States, most home buyers borrow money in the form of a mortgage loan,
and the mortgage lender always requires that the buyer purchase homeowners
insurance as a condition of the loan, in order to protect the bank if the home were
to be destroyed. Anyone with an insurable interest in the property should be listed
on the policy. In some cases the mortgagee will waive the need for the mortgagor
to carry homeowner's insurance if the value of the land exceeds the amount of the
mortgage balance. In a case like this even the total destruction of any buildings
would not affect the ability of the lender to be able to foreclose and recover the full
amount of the loan.

The insurance crisis in Florida has meant that some waterfront property owners in
that state have had to make that decision due to the high cost of premiums. See
Citizens insurance.
 HISTORY

The first homeowners policy perse in the United States was introduced in
September 1950, but similar policies had existed in Great Britain and certain areas
of the United States. In the late forties US insurance law was reformed and during
this process multiple line statutes were written, allowing homeowners policies to
become legal.

Prior to the 1950s, there were separate policies for the various perils that could
affect a home. A homeowner would have had to purchase separate policies
covering fire losses, theft, personal property, and the like. During the 1950s, policy
forms were developed allowing the homeowner to purchase all the insurance they
needed on one complete policy. However, these policies varied by insurance
company, and were difficult to comprehend.

The need for standardization grew so great that a private company based in Jersey
City, New Jersey, Insurance Services Office, also known as the ISO, was formed in 1971

to provide risk information and issued a simplified homeowners policy for resell to
insurance companies. These policies have been amended over the years.
 IMPORTANCE OF HOME INSURANCE

Home Insurance has evolved as one of the most enterprising sector in the real
estate scenario in India. As more and more investments are made in the real estate
sector, there has been a rising demand for home finance and home insurance
simultaneously. The importance of home insurance in the protection of your house
and valuable possessions is as importance as protecting your family from any
hazards that act as threat to life and property.

The policy provided by the home insurance companies act as a guarantee that
combines insurance of the home, its contents the personal possessions of the
homeowner, risk attached to burglary; as well as liability insurance for accidents
that may happen at the house like fire and natural calamities. The extent of the risk
covered however depends on the type and content of the policy. A generally
configured home insurance policy usually covers calamities in two categories -
natural and man-made.

Home insurance is important as it not only provides you with financial protection
against any damage your property might incur - to both your buildings and the
contents; but it can be considered a small amount of money you pay in lieu of the
peace of mind that brings with it and the content that your property is insured and
protected against all hazards. Though the importance of having a home insurance
policy cannot be over emphasized, one cannot predict any disasters or unavoidable
incident that might happen to one's home.

Home insurance not only protects the homeowner from total loss when disaster
occurs, but also protects the home owner in the event that their home is damaged
by acts of God or if a person becomes injured, the home owner will not be held
solely liable for all of the damages. The home insurance policies usually cover a
home under the all risks clause unless otherwise noted in an exclusion clause. For
instance, a home can be covered for fire damage, earthquake damage, and acts of
vandalism under an all risks policy, but if the policy states that the home is not
covered for deluge or say tsunami, than water damage due to the mentioned natural
calamity would not be covered.

To summarize it, the home insurance policy is important for the homeowner as it
ultimately gives the home owner a sense of security to protect his family and
property against calamities.

HOME INSURANCE IN INDIA

The Home insurance sector in India is at a nascent stage as compared to other
insurance sectors in the country. With the real estate boom at its prime in India,
home finance has become an indispensable part of real estate functioning.
Moreover, the housing finance companies (HFCs) are also playing an important
role in the evolvement of the home insurance company in India. Due to the new
regulations by the finance companies making home insurance mandatory for
seeking home loans in India, the home insurance sector has recently seen massive
revival in business. Industry analyst say that, if the home loans and insurance
sector continue to facilitate each others growth, then the insurance segment is soon
set to achieve a 100% growth. The latest growth curve shows the home insurance
premium touching the Rs 150 crore-mark, registering a growth of 25% in the last
financial year; and if the situation prevails, the trend is predicted to continue.

As the growth curve of investments in Indian real estate sector escalates, more and
more insurance companies are making their foray into the home insurance sector.
This has also initiated a trend of insurance companies from across the globe
making their foray into Indian market either as individual entity or in joint ventures
with the local existing insurance companies. Home insurance and real estate has of
late become conspicuous of the buzz it has created in the realty industry in India.
Adding to the list of leading and existing public sector companies in the home
insurance business like New India Assurance, Life Insurance Company of India,
United India Insurance, Oriental Insurance and National Insurance Company; is a
list of private insurance companies which are set to play a pivotal role in the
growth of the sector.

The most thriving amongst those are mostly joint venture companies like ICICI
Lombard General Insurance, Bajaj Allianz General Insurance, Tata AIG General
Insurance Company Ltd, IFFCO-TOKIO and Royal Sundaram Alliance to name a
few. Considering the feasibility of a largely huge and growing market, the home
insurance sectors has lately expanded its business beyond the metros to the Tier I
and II cities where real estate development is expected to flare up in the years to
come.The booming real estate sector in India is considered to be one of the most
encouraging factors in the resurgence of the home insurance sector. However, apart
from the real estate factor, the recent spate of calamities that has hit the country
like the earthquakes, tsunami, the consistent flood every year in most parts of the
country and the exceptional cases of 'deluge' in Mumbai in 2005 has made people
opt for home insurance like never before.

TYPES OF HOME INSURANCE

Home insurance in India has a key role to play in the protection of your house or
building structure and valuable possessions or building content. Home insurance
policy is a guarantee provided by the insurance company that combines insurance
on the home, its contents the personal possessions of the homeowner, as well as
insurance covering accidents that may happen at the house like fire and natural
calamities. The coverage of the risk however depends on the type of policy.

There are mainly two types of home insurance in India.

• Building insurance
• Content insurance

1. Buildings Insurance

Buildings insurance is an important part of property investments. The mandatory

obligation made by the housing finance companies has strengthened the need for
insurance in conjunction with property investments. Insuring the building or
building structure is important since it protects you against inevitable losses in case
your building is destructed and debilitated in any natural or man-made calamities.

The housing finance companies are insisting on building insurance so that in the
event of a disaster it can be repaired or rebuilt, as lenders don't want to be left
without security for their loan. A home insurance policy should cover expenditure
to rebuild your home in the event of it being totally destroyed or damaged to the
point that complete rebuilding is necessary (in eventualities like earthquake, fire
etc).
Different home insurance companies have different specifications for policy
coverage. It is recommended that you check the terms and conditions of the policy.
Home insurance companies in India mostly have home insurance plans that insure
the building structure of your home for its reconstruction value. This is the cost
incurred to reconstruct the home if it is damaged and not for its market value such
as the cost of land etc. Sum insured is calculated by multiplying the built up area of
your home with the construction rate per sq. feet

Home insurance plan for buildings are usually meted out on conditions as per the
policy terms arising out of conditions like

• Fire, Lightening, explosion of gas in domestic appliances

• Bursting and overflowing of water tanks, apparatus or pipes.
• Riot, Strike, Malicious or Terrorist Act
• Flood, Inundation, Storm, Typhoon, Hurricane, Tornado or Cyclone
• Damage due to earthquake, subsidence and Landslide (including Rockslide).
• Damage caused by Aircraft & Impact damage
• Third party liability and personal accident.

2. Content Insurance

Content insurance may be considered optional but with the threat of burglaries,
natural disasters and fire, content insurance covers are rising in demand. Contents
insurance for home insurance plans includes protection to movable goods,
possessions or contents in the house; anything that is not a fixed parts of your
home, for example your appliances, electronic goods, furniture and clothing.

Similarly as the modalities adopted in building insurance, different home insurance

companies in India have different policies for content insurance. Most companies
comply with insurance plans where a value equivalent to the market value of
household contents i.e. the value for which this used item could be bought or sold
in the market is covered as insurance. The insured amount given against the perils
for building or structure and its contents is assessed either on 'reinstatement value'
basis -which is the value for replacing the item with a new item of same type and
make; or on 'market value' basis -which is the reinstatement value less depreciation
depending on the age of the item.

Content insurance offers protection against various perils including:

• Fires
• Storms/flooding
• Explosions
• Theft and vandalism
• Valuables such as jewellery, cameras and watches against all risks,
• Cover against all kinds of accidental breakage of plate glass fixed in doors
and window frames.
• Loss/damage to domestic appliances due to electrical and mechanical
breakdown.

Home insurance can be availed for both building and content combined. However,
most home insurance plans in India excludes underinsurance of the property value,
willful destruction of property, loss, damage or destruction caused by war perils,
wear and tear and atmospheric conditions etc., damage due to an act of
terrorism(unless specifically covered) and losses or damages incurred when
premises are unoccupied beyond 60 consecutive days.

HOME CLAIM PROCEDURE

• Inform the call center with policy details.
• Provide relevant information, which includes your policy and other details
regarding your claim. Consequently, your claim request is authenticated and
is escalated to the company's claims department.
• Company's claims department validates and registers the request. They
appoint a surveyor within 48 hours.
• The insured submits all the relevant documents to the surveyor. The
surveyor submits the Final Survey Report (FSR) along with the documents
within 7 days.
• If surveyor is not appointed, the company's claims department sends a letter
of requirement for submitting documents to the insured within 24 hours of
claim intimation.
• On receipt of documents, the claims department processes the claim within 7
days. On approval of the claim, a letter is send to the insured giving the
approved amount of settlement along with the discharge voucher.
• Payment cheque is released on receipt of the signed discharge voucher.

CLAIMS COVERED UNDER HOME INSURANCE

Insurance claim amount is always something creeping up on the mind of both
insurer and the insurance company. It is more evident in case when there is a
possibility of you filing a claim to recover the amount for that claim. If you provide
sufficient proof and necessary documents for your home insurance claim, there is a
fair chance you can get the amount by the Home Insurance company or provider.
Also, submitting a claim on your home policy is a relatively quite simple process.
The steps involve contacting your agent, filling out a claim form and waiting for an
appointed arbiter to verify the facts and judge the authenticity of the damage. If the
damage is really worth notice, it's a matter of few days to get the claimed amount
through check. Most claims are handled quickly.

Sometimes the claim process can really be time taking and frustrating. Also keep in
mind that most insurance providers don't enjoy the idea of two or three claims in a
short span of time and you stand almost certain chance of getting cancellation of
these claims. Try to stay away from high risks, so you should be sure to make only
those claims that are absolutely necessary. Or, if you are sure about your rights to
claim and corresponding damage or loss, just go full throttle to register a claim.
Only remember that there can sometimes be unpleasant repercussions.

Here are some general tips for handling auto and home insurance claims:

• Know your policy.

• Stake your claim quickly.
• Avoid using the word "lawyer."
• Keep a copy of the police report.
• Get an estimate or two.

DOCUMENTS REQUIRED
Documents are the most valid and appropriate proof for your home insurance
claims. Always keep your documents in place and ready both before you need to
make a claim and when you need to make one. It is always advisable to save the
receipts for items you buy. This will give the indication and estimation of the total
cost of items and damage claim amount accordingly. Photographs and/or
videotapes of your home (both in pre- and post-disaster form) can also be
beneficial. These will help you establish an inventory of your belongings should
the need arise. Always save photos or videos of the damage before you begin
cleaning up.

List of Documents Required

1. Duly completed and signed claim form

2. Xerox copy of policy
3. Copy of FIR
4. Final Report from police
5. Copy of all invoices, price lists, repair estimate

TYPES OF POLICIES AS PER ISO

Currently, the ISO has seven standardized homeowners insurance forms in general
use:

HO1 – Basic Homeowner Policy

A basic policy form that provides coverage on a home against 11 listed

perils; contents are generally included in this type of coverage, but must be
explicitly enumerated. The perils include fire or lightning, windstorm or hail,
vandalism or malicious mischief, theft, damage from vehicles and aircraft,
explosion riot or civil commotion, glass breakage, smoke, volcanic eruption,
and personal liability. Exceptions include floods, earthquakes.

HO2 – Broad Homeowner Policy

A more advanced form that provides coverage on a home against 17 listed

perils (including all 11 on the HO1). The coverage is usually a "named
perils" policy, which lists the events that would be covered.

HO3 – All Risk Homeowner Policy

The typical, most comprehensive form used for single-family homes. The
policy provides "all risk" coverage on the home with some perils excluded,
such as earthquake and flood. Contents are covered on a named peril basis.
HO4 – Renter's Insurance

The “Tenants” form is for renters. It covers personal property against the
same perils as the HO2.

HO6 – Condominium Policy

The form for condominium owners.

HO8 – Older Houses

The “Modified Coverage” form is for the owner-occupied older home whose
replacement cost far exceeds the property’s market value.

COVERAGE RATES
According a 1998 NAIC (National Association Of Investors Corporation) report,
83% of homes were covered by owner-occupied homeowner’s policies. Of these,
87% had the HO3 Special and 9% had the more expensive HO5 Comprehensive.
Both of these policies are "all risks" or "open perils", meaning that they cover all
perils except those specifically excluded. 3% were the HO2 Broad, which covers
only specific named perils. Others include the HO1 Basic and the HO8 Modified,
which is the most limited in its coverage. HO8, also known as older home
insurance, is likely to pay only actual cash value for damages rather than
replacement.

The remaining 13% of home insurance policies were covered by renters or

condominium insurance. Two-thirds of these had the HO-4 Contents Broad form,
also known as renters insurance, which covers the contents of an apartment not
specifically covered in the blanket policy written for the complex. This policy can
also cover liabilities arising from accidents and intentional injuries for guests as
well as passers-by up to 150' of the domicile. Common coverage areas are events
such as lightning, riot, aircraft, explosion, vandalism, smoke, theft, windstorm or
hail, falling objects, volcanic eruption, snow, sleet, and weight of ice.

The remainder had the HO-6 Unit-Owners policy, also known as a condominium
insurance, which is designed for the owners of condos and includes coverage for
the part of the building owned by the insured and for the property housed therein.
Designed to span the gap between the coverage provided by the blanket policy
written for the entire neighborhood or building and the personal property inside the
home. The liability coverage may cover incidents up to 150 feet from the insured
property, all valuables within the home from theft, fire or water damage or other
forms of loss. The Associations Bylaws determine the total amount of insurance
necessary.
In addition, about 2.4% of homes were covered by a dwelling fire policy which
covers property damage to a structure and is typically sold to noncommercial
owners of rented houses. It may also cover the owner's personal property (such as
appliances and furnishings). The owner's liability is generally extended from their
own primary home insurance, and does not comprise part of the Dwelling Fire
policy.

CLASSES OF COVERAGE
For each policy, there are typically six classifications of coverage. These are based
on standard Insurance Services Office or American Association of Insurance Services forms.

Section I — Property Coverage

Coverage A – Dwelling

Covers the value of the dwelling itself (not including the land). Typically, a
coinsurance clause states that as long as the dwelling is insured to 80% of
actual value, it will be replaced. This is in place to give a buffer against
inflation. HO-4 (renter's insurance) typically has no Coverage A, although it
has additional coverage for improvements.

Coverage B – Other Structures

Covers other structure around the property which are not used for business,
except as a private garage. Typically limited at 10% of the Coverage A.

Coverage C – Personal Property

Covers personal property, with limits for the theft and loss of particular
classes of items (e.g., $200 for money, banknotes, bullion, coins, medals,
etc). Typically 50 to 70% of coverage A is required for contents, which
means that consumers may pay for much more insurance than necessary.
This has led to some calls for more choices.

Coverage D – Loss of Use/Additional Living Expenses

Covers expenses associated with additional living expenses (i.e. rental
expenses) and fair rental value, if part of the residence was rented, however
only the rental income for the actual rent of the space not services provided
such as utilities.

ADDITIONAL COVERAGES

Covers a variety of expenses such as debris removal, reasonable repairs,

damage to trees and shrubs for certain named perils (excluding the most
common causes of damage, wind and ice), fire department changes, removal
of property, credit card / identity theft charges, loss assessment, collapse,
landlord's furnishing, and some building additions. These vary depending
upon the form.

EXCLUSIONS

In an open perils policy, specific exclusions will be stated in this section.

These generally include earth movement, water damage, power failure,
neglect, war, nuclear hazard, intentional loss, and concurrent causation (for
HO-3).

THREE WAYS TO INSURE HOME.

When you insure your home, you should insure your home for the total amount it
would cost to rebuild your home if it were destroyed. If you don't have sufficient
insurance, your insurance company may only pay a portion of the cost of replacing
or repairing damaged items.
There are three ways to insure the structure of your home:

1. Replacement Cost: Insurance that pays the policyholder the cost of replacing
the damaged property without deduction for depreciation, but limited to a
maximum dollar amount.
2. Guaranteed Replacement Cost: Insurance that pays the full cost of replacing
damaged property, without a deduction for depreciation and without a dollar
limit. This coverage is not available in all states and some companies limit
the coverage to 120 percent of the cost of rebuilding your home. This gives
you protection against such things as a sudden increase in construction costs
due to a shortage of building materials.
3. Actual Cash Value: Insurance under which the policyholder receives an
amount equal to the replacement value of damaged property minus an
allowance for depreciation. Unless a homeowner’s policy specifies that
property is covered for its replacement value, the coverage is for actual cash
value.

For a quick estimate of the amount to rebuild your home, multiply the local
building costs per square foot by the total square footage of your house. To find out
the building rates in your area, consult your local builders association or real estate
appraiser.
Factors that will determine the cost to rebuild your home:
 • Local construction costs
• The square footage of the structure
• The type of exterior wall construction: frame, masonry (brick or stone) or
veneer
• The style of the house (ranch, colonial)
• The number of bathrooms and other rooms
• The type of roof
• Attached garages, fireplaces, exterior trim and other special features like
arched windows.

Also be sure to check the value of your insurance policy against rising local
building costs each year. Ask your insurance agent or company representative
about adding an Inflation Guard Clause to your policy. This automatically adjusts
the dwelling limit when you renew your policy to reflect current construction costs
in your area. Also be sure to increase the limit of your policy if you make
improvements or additions to your house.

COMPANIES PROVIDING HOME INSURANCE

  ICICI Home Insurance

It is imperative that you secure your home from natural and man-made
catastrophes. Before Applying for Home Insurance you should know about
Importance of Home Insurance. Our Home Insurance Plan ensures you peace of
mind by protecting the structure and the contents of your home.

Policy Details & Coverage

You can choose to buy insurance for only the building (structure) of your home, or
only the contents (belongings) or both. The policy covers the losses to the structure
and contents of your home due to any natural and man made calamities.

The calamities covered are:

• Fire
• Riot, strike & malicious damage
• Explosion & implosion
• Earthquake
• Lightning
• Storm, cyclone, tempest, tornado, hurricane, flood & inundation
• Damage due to impact by vehicles
• Missile testing operation
• Subsidence, landslides and rockslides
• Leakage from automatic Sprinkler installations
• Bursting and/or overflowing of water tanks, apparatus and pipes

Burglary covers (only for contents):

• The contents of your home are also covered against loss due to burglary or
an attempted burglary. It also covers loss of jewellery, silver articles and
precious stones kept under lock and key, up to 25% of the total content sum
insured or Rs. 1 Lac, whichever is lower.
• Additional expenses of rent for alternative accommodation - If you are
forced to shift into an alternative accommodation because your home is
destroyed or damaged by any insured peril, the policy will cover you against
the additional rent.
• The maximum coverage is up to Rs. 1,00,000 for up to 6 months. The cover
is available only if you are insuring the structure of your home.

Key Benefits
• Digitally signed policy is available 24X7 online, customer can take prints
instantly. The hard copy of the policy is couriered the same day (or next day
if customer buys after 6 PM) and will reach him/her within 2-3 working
days.
• Avail 15% discount on a 3 years home insurance policy and 25% discount
on 5 years policy.
• Optional covers available - Terrorism and Additional expenses of rent for
alternative accommodation.

Sum Insured
• How to calculate the sum insured for:

Home Structure

The home insurance policy insures the structure of your home for its
reconstruction value (and not for market value). Reconstruction value is
defined as the cost incurred to reconstruct the home if it is damaged. On the
other hand market value is a combination of cost of land, demand & supply
scenario, etc.

• Sum insured is calculated by multiplying the built up area of your home with
the construction rate per sq. feet, e.g. if your built up area of your home is
1000 sq. feet and the construction rate is Rs. 800 per sq. feet, the sum
insured for your home structure is Rs. 8,00,000.
• We recommend the rate of construction for your location when you are
buying online. However, this value can be revised appropriately if expensive
material - like marble flooring, etc. - has been used in construction. If your
home has lawn / garden surrounded by a perimeter wall, the construction rate
can be revised to include the cost of construction of this wall in home
structure sum insured.
  Tata AIG General Insurance Company Limited

HOME INSURANCE

"Home sweet Home" - a destination, any individual or a family feels very close to
the heart. It is an investment of one's lifetime savings, emotional dreams and
aspirations to realize their ideal home. Home signifies a set of emotions for any
individual, be it pride, ownership, stability or be it a sense of belonging. It echoes
the owners' sentiments "It's my house”. After all, one's Home including its contents
is the single most important and expensive asset that we have created for ourselves.
We have learnt to value life and health sufficiently to understand the importance of
insuring it. But when it comes to applying the same logic to our home (around
which our lives revolve) most of us suffers a blind spot. It is only when a calamity
or catastrophe strikes that we feel helpless.

HOME SECURE BENEFITS.

Home Insurance in India provides exactly the care one needs at such times - to
safeguard against unforeseen eventualities and to preserve one's lifestyle and that
too at an affordable price. You can protect your priceless investment for very little
money. Assuming you have possessions worth Rs. 300,000 in your house, you can
insure those possessions for as little as Rs. 3 a day - for Fire, Natural Hazards
(Flood, Earthquake etc) and Burglary & Theft.
  The Oriental Insurance Co. Ltd.

Householders Insurance Policy

Brief Description: The House holder's Insurance Policy is a comprehensive shelter

that protects your house and the various contents in it against a variety of risks. It is
a single policy that takes care of a number of contingencies. The policy is divided
into 10 sections. Sec 1(B) and a minimum of any 2 other sections are compulsory.

• Section 1: Fire and Allied Perils.

• Section 2: Burglary.
• Section 3: All risks.
• Section 4: Plate Glass.
Section 5: Breakdown of domestic appliances.
• Section 6: T.V. Set.
• Section 7: Pedal Cycles.
Section 8: Baggage Insurance.
• Section 9: Personal Accident.
• Section 10: Public Liability
 Covered Risks: Buildings of class 'A' construction, Plate Glass, Breakdown of
domestic appliances, T.V. Set, Pedal Cycles, Baggage Insurance, Personal
Accident, Public Liability.

 BAJAJ ALLIANZ

Householders

Your home is our most valued possession, a haven of safety. But is it really as safe
as we would like to believe? We at Bajaj Allianz realize your need to make your
home as secure in reality as it is in your mind. This is why we bring to you the
House- Holders' Insurance policy designed to cover various risks and contingencies
faced by householders under a single policy. It provides protection for property and
interests of the insured and his family members who permanently reside with the
insured. A home insurance(householder's insurance), protects not just your flat but
also your domestic and electronic appliances.

Unique Features

• Very competitive premium rates.

• First loss basis option for burglary and jewelry.
• Flexible rating for personal accident of the insured
• No valuation certificate required for jewelry upto Rs.2 lacs.
• Assembled computers can also be covered under EEI.
Benefits

• No strain on pockets of insured.

• xSaving on cost.
• Customized cover can be opted by the insured.
• Save on time while proposing.
• Same policy addressing varied needs.

Advantages

• Single Proposal form.

• Complete coverage at reduced premium.
• Client needs being addressed.
• Simple and quick documentation.
• Related items got covered under respective sections
  IFFCO-TOKIO General Insurance

A Complete Protector

Our Home Suvidha Insurance Policy gives complete protection to your home
against a wide range of risks and perils. It is a simple Home Insurance Policy
wherein there are various categories of Sum Insured and you may opt for the
category most suitable to you depending upon the extent of risk perceived and total
value of your assets.

The Sum Insured under Section 1 & 2 represents the First Loss limit which should
be within 50% of the actual Market Value of the property at risk, below which
underinsurance condition will be applicable. The other Sections are covered on Full
Value basis - Market Value for Section 5 and Reinstatement Value for Section 3 &
6. Sections 5 and 6 are optional. Either on both of them can be deleted from the
cover taken, in case they are not relevant to you.

Coverage Under Home Suvidha

• Fire and Allied Perils (Contents): Contents of your premises are covered
against fire, explosion, bursting/ overflowing of watertanks, riots, strike and
malicious damage, earthquake, flood, cyclone, landslide etc.
• Burglary and other Perils (Contents): Contents of your premises are covered
against housebreaking, burglary, robbery or dacoity and also against impact
damages by falling trees/electric poles/lamp posts, breakage or collapse of
television or radio aerials/satellite dishes and damage by civic authorities in
the prevention of fire.
• Television/Video Equipment: This Section covers loss or damage to your
television/ video equipment against fire, theft, accidental damage and
breakdown.
• Personal Accident: This section covers you and your named family members
against accidental bodily injury leading to death or disablement (either
permanent total or permanent partial).
• Fire and Allied Perils (Building): This Section covers the residential
building, if owned by you against perils mentioned under the Fire and Allied
Perils (Contents) Section.
• Personal Computer: This Section covers loss or damage to your personal
computer against fire, theft, accidental damage and breakdown.

Who can apply for this policy?

This Policy is suitable for you as a householder, whether you are a landlord
or a tenant, whether you reside in an independent house or in a
flat/apartment, whether the building is single storied or is a high rise, since
 each of the alternatives above would imply different risk exposures which
can be covered under this policy.

 Quality Buildings Insurance from Royal Sundaram

Home Insurance

Homeshield Classic is a comprehensive package of insurance benefits designed to

cover the buildings and contents of your home against all possible kinds of perils
such as fire, earthquake, terrorism, storm, flood, cyclone, burglary and breakdown
of appliances. Your building cover can be arranged in conjunction with your
contents cover or on its own.

Homeshield Classic – Coverage

When it comes to contents of your home, Royal Sundaram-s Homeshield Classic
will give you complete peace of mind by covering the contents against a range of
risks. We also cover building insurance.

Three levels of cover to choose from to suit your lifestyle.

• You have the option of insuring your building against fire and allied perils.
• You have an option of payment through credit card with automatic renewal
facility.
• Assured Claims service: Claims will be settled within 10 days of receipt of
documents.
• We provide you 15 days to review your policy document. If you are not
completely satisfied, simply return your policy for cancellation and Royal
Sundaram will refund the entire premium paid provided no claim has been
made.

Homeshield Classic - Features

• Simple documentation & customer-friendly package.

• Comprehensive package covering fire, earthquake, terrorism, storm,
• Option to cover building against Fire & allied perils @ Rs.78.56/- per lac.
• Covers household contents, appliances, jewellery & breakdown of
appliances.
• 3 levels of cover to choose from : Silver, Gold & Platinum.
• Assured Claims service: Claims will be settled within 10 days of receipt of
documents.
You have an option of payment through credit card with automatic renewal facility.

Option of Add-on covers for Computer, Air-conditioner, Air Cooler.

 The New India Assurance Co. Ltd.

Householders Policy

Highlights
This is a package policy specially designed to meet the insurance requirements of a
householder by combining under a single policy, a number of our standard policies
usually taken by householders. Discount in premium is offered depending upon the
number of sections of the policy, opted for, by the proposer.
Scope
The policy comprises of 10 sections as given here under

Section I - Fire & Allied Peril

• Coverage for building

• Covers contents of the dwelling belonging to the proposer and his/her family
members permanently residing with him/her.

Allied Perils:

• Fire, Lightening, Explosion of gas in domestic appliances

• Bursting and overflowing of water tanks, apparatus or pipes.
• Damage caused by Aircraft , Riot, Strike, Malicious or Terrorist Act
• Earthquake, Fire and/or Shock, subsidence and Landslide (including
Rockslide) damage
• Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tomado or
Cyclone, Impact damage

Section II - Burglary & House Breaking including larceny and theft.

Covers contents of the dwelling against loss due to burglary, house breaking,
larceny or theft.

Section III - All Risks (Jewellery & Valuables)

Covers loss or damage to your jewellery and valuables by accident or misfortune

whilst kept, worn or carried anywhere in India subject to the value declared in the
schedule.
Section IV - Plate Glass

Loss or damage to fixed plate glass in the insured premises by accidental breakage
subject to limit of sum insured

Section V - Breakdown of Domestic appliances

Covers domestic appliances against unforeseen and sudden physical damage due to
mechanical or electrical breakdown.

Section VI - T.V. Set including VCP/VCR (ALL RISKS)

Covers loss or damage to T.V. Set including VCP/VCR by fire and allied perils,
burglary, house breaking or theft, breakage due to accidental external means,
mechanical or electrical breakdown. Any legal liability arising out of bodily injury
or accidental death of any person other than insured's family members or employee
as also damage to property not belonging to or in the custody of insured , caused by
use of the T.V. Set is also covered up to a limit of Rs.25,000/-.

Section VII - Pedal Cycles (All Risks)

Covers loss or damage to pedal cycles by :-

• Fire & allied perils , Burglary, housebreaking, theft , Accidental external

means
• Third party personal injury or Third party property damage for Rs.10,000/-

Section VII - Baggage Insurance

Covers loss or damage to insured's accompanied baggage by accident or misfortune

whilst the insured is traveling on tour or holiday anywhere in India.
Section IX – Public Accident

Covers Death or bodily injury by accidental, violent, external and visible means to
the insured person named in the schedule and subject to limits specified therein.

Section X - Public liability.

Covers Insured's legal liability for bodily injury or loss of or damage to property of
third party limited to amount specified in the schedule and workmen's
compensation liability to domestic servants engaged in insured's premises. It is
compulsory to opt for Section IB of the policy. A minimum of three sections
including Section IB have to be taken for issuance of this policy.

How to select sum insured

For the insurance of household items, it would be necessary to group the items in a
broad category like furniture, clothing , linen, utensils , crockery etc. and give a
value equivalent to the market value i.e. the value for which this used item could be
bought or sold in the market. Sections I A & B, II, III, IV, VI, VII & VIII should be
insured on market value basis as described above. It is a condition of Section V i.e.
breakdown of domestic appliances, that the sum insured should represent the
current replacement value of a similar item. For e.g. to insure 165 ltr. Godrej fridge
which is 3 years old, the sum insured should be equivalent to the cost price of a
new 165 ltr. Godrej fridge. However, the claim amount payable would be the
amount required to bring the damaged item to the same condition as it was prior to
the damage subject to the adequacy of the sum insured. The sum insured under
section IX i.e. Personal Accident should not exceed 72 months salary from gainful
employment.
 HOME INSURANCE CLAIM

In case of any incident leading to a valid claim under the policy, following steps
should be taken:

• Take necessary steps to minimize the loss/damage.

• In case of fire, inform fire brigade immediately.
• In case of theft, larceny or burglary inform the police immediately along
with a list of items stolen and their approximate value.

Inform insurance company by phone or fax and in writing.

Extend full co-operation to the surveyor appointed by the insurance Co. and
provide necessary documents to the substantiate the loss. A claim form issued by
the company is also to be submitted.
In case any rights of recovery exist against any other party responsible for the loss,
your rights of recovery have to be subrogated to the insurance company on
payment of claim.
CALCULATION OF HOME INSURANCE PREMIUM OR
AMOUNT.

The factors to be kept in mind while calculating the insurance premium and
accepting the home insurance quote being offered by the home insurance company
are

• Area of the House (calculated in sq.ft.)

• Location and neighborhood
• Approximate rate of construction (calculated in Rs. per sq.ft.)
• Permanent construction on the land
• The time period offered for the insurance premium (monthly, quarterly or six
monthly depending upon the insurance amount) Property more than 50 years
old is not covered in home insurance
• The insurance policy offered is standard or flexi covering
 TEN WAYS TO CUT THE COST OF YOUR
HOMEOWNER'S INSURANCE

Here are ten ways to minimize the cost of your homeowner's insurance.

1. Raise Your Homeowner's Insurance Deductible

Your deductible is the amount of risk you agree to accept before the insurance
company starts paying on a claim. With the cost of homeowner's insurance
escalating, it no longer makes sense to let the insurance company assume all the
risk. If you have a low deductible of $50 to $100, consider raising it to at least
$500 to $1,000. You could save up to 25% on your premiums.

Some companies are offering deductibles equal to 1% of the insured value of

your home ($1,000 deductible on a $100,000 home). It that seems like a lot of
money to pay in the event of a claim, consider this: the trends in homeowner's
insurance are for insurance companies to severely penalize customers who file
one or more small claims. Often the premiums are jacked way up or the policy
is cancelled, and when the customer looks elsewhere for coverage, they may
find it costs them three times what they were paying. We should change our
perception that insurance of any type is intended to cover all of our expenses
when we incur a claim. Those days are over. Think of insurance as risk sharing.
How much risk are you willing to assume?
 2. Combine Your Homeowner's Insurance and Auto Insurance
Policies

Consider buying your homeowner's and auto insurance policies from a company
that offers both. Some companies offer discounts of 5 to 15% if you buy both
types of coverage from them. Check around and make sure the price is lower
than buying the two policies from two different companies before making this
move.

3. Ask About Other Homeowner's Insurance Discounts

Make sure you're receiving all the discounts for which you're eligible. For
example, discounts exist for smoke detectors, deadbolt locks, security or fire
alarm systems, fire extinguishers in the home, etc. If you're over 55 and retired,
you may qualify for an additional 10% discount.

4. Don't Buy Homeowners's Insurance Coverage You Don't Need

It makes no sense to buy insurance to protect yourself against risks you are
unlikely to encounter; for example, earthquake coverage in a non-earthquake
zone, or a jewelry floater to your policy if you don't own expensive jewelry.

5. Know What Your Homeowner's Insurance Policy Covers

Your home is your biggest investment. Make sure it's adequately protected from
risks you cannot afford to cover yourself and that it covers any home
improvements you've made, major purchases, and increased costs of rebuilding.
 6. Make Your Home a Better Insurance Risk

Ask your insurance agent what you can do to make your home less expensive to
insure. Making changes that reduce the risk of damage in windstorms and other
natural disasters is one example. Another is updating old wiring or heating
systems, which may reduce your risk of fires and therefore reduce your
premiums.

7. Keep Your Insurance Coverages Up To Date

Once a year, before your homeowner's insurance policy is due to renew, dig out
the current policy, read through all the details, and call your insurance agent to
discuss any changes in your situation that occurred during the year.

8. Avoid Risks That Insurers Shun

Insurers are shying away from some risks. For instance, owning certain types of
dogs (Rottweiler’s, Doberman Pinschers, Pit Bulls), can limit or void your
policy. Owning a swimming pool or a trampoline can increase your cost of
coverage. Read all the fine print in your policy under the "Conditions and
Coverages" sections so you know all the things that are excluded from
coverage. You may opt to buy additional coverage to protect yourself from
certain exposures.
 9. Improve Your Credit Score

Insurance companies are increasingly using credit information to price

insurance policies. Don't have too many open credit accounts, don't charge close
to the limits on your credit cards, and pay all your bills on time to keep your
credit score healthy.

10. Shop Around for Homeowner's Insurance

Shop around for homeowner's insurance rates but keep in mind that you may be
receiving a longevity discount if you've been with your current insurer for
several years. Typical discounts are 5% if you've been with the company for
three to five years, and 10% for six years or more. Get quotes from three agents,
and take any longevity discounts with your current insurer into consideration
when you compare prices.
 QUESTIONAIRE FOR SURVEY

FOR MANAGER

• What is the procedure for application of Home Insurance?

• What are the types of Home Insurance?

• What is the eligibility criteria?

• What are the documents required for taking Home Insurance?

• What are the terms and conditions for the following:

(I)Premium (II) Claim (III) Defaulters

• What are the damages covered under the Home Insurance policy?
 FOR CUSTOMERS

• Whether you know about Home insurance?

• Have you taken this policy from any agent or have you visited company

personally?

• Does Company provide knowledge on entire product range in its portfolio?

• What is your opinion regarding private companies? Whether they provide

same safety and security to public as government companies?

• Are you satisfied with the services provided by them?

• What factors do you considered while selecting ICICI Lombard as an

insurance company?
 ANALYSIS OF SURVEY OF ICICI LOMBARD

• PROCEDURE FOR APPLICATION OF HOME INSURANCE:

After doing survey of ICICI Lombard I found that procedure for

application of Home Insurance is filling a proposal form or through internet.

• TYPES OF HOME INSURANCE:

ICICI Lombard provides only single home insurance product (Home

Safe + Product)

• ELIGIBILITY CRITERIA :

ELIGIBILITY ICICI LOMBARD

CRITERIA
MINIMUM 20 YEARS

MAXIMUM 50 YEARS

POLICY TERM 36 MONTHS

• DAMAGES COVERED:

ICICI Lombard provide following coverages:

Fire and Special Perils, Audio & Audio Visual Appliances

Burglary & Theft, Public Liability

Baggage Loss, Purchase Protection

Breakdown of Domestic Appliances

Personal Accident, Rent for alternative accommodation

• TERMS AND CONDITIONS:

(A) Premium: In case of premium customers have to pay annually only.

Up to 1Lakh it is 141 Rs. There premium is based on

their value of sum assured.

(B) Claim: In case of claim customers have to submit the documents

Such as it should be registered under municipality

Corporation, FIR, etc.

(C) Defaulter: In case of default by customer the policies of them are

Cancelled.
 • DOCUMENTS:

Customers have to fill only proposal form of the company which is

provided by them and this policy is based on the utmost good faith principle
of insurance.

CUSTOMER
NO. OF CUSTOMERS VISITED (10)

CUSTOMERS HAVING HOME CUSTOMERS NOT HAVING

INSURANCE POLICY (3) HOME INSURANCE POLICY (7)

After detail analysis of 10 customers I found that all the customers are aware about
insurance services.

As we know that ICICI is the no 2 private sector organization in INDIA. So

according to those 10 customers ICICI’S brand name is the most important factor
for taking insurance policy. Out of 10 customers only 3 customers have taken home
insurance policy from ICICI Lombard where as remaining 7 customers are not
aware about home insurance as a concept. Those 3 customers have taken the policy
from agent and for further procedure they visited personally to the company.
Agents provide entire knowledge of product such as some assured, features of
policy, premium payable, product coverage, eligibility etc.

When I spoke with 10 customers I found that they give same preference to the
private organization as well as public organization. The services provided by ICICI
are as follows:

24 x 7 service, Toll free no’s, online application and Banc assurance. All this
factors satisfy the customers need.

The insurance industry is in the silent revolution and the best part is that all of us
are part of this revolution process, contributing to it and influencing shape of things
to emerge. It will be quite interesting to see an excess of distribution system taking
shape and competing with each others.

There is one truth in marketing that is “different consumers Approach buying

differently. Studies have time and again shown that insurance is bought because of
convenience, product features, product placement, and safety of funds, advice, and
not the price.

From the survey of customers I came to conclusion that many of the customers are
not aware about the concept home insurance. As this policy is generally taken by
the businessmen’s, self professionals. We can expect from this organization that it
will lead the innovative process with quality of services that will help the Indian
consumer to take advantage from insurance business.

• INFORMATION COLLECTED THROUGH SURVEY(ICICI BANK)

• WWW.GOOGLE.COM

• WWW.ICICILOMBARD .COM