There are two types of home insurance policies — basic fire insurance policy and a comprehensive policy, also called the householder’s package policy (HPP). Fire insurance policy covers your house against fire and other allied perils including lightening, storm, flood and riot. However, some insurers may ask you to pay an extra premium in order to cover disasters such as earthquake and landslides. You can also insure your house and contents against terrorism by buying an add-on cover.
HPP(Householder’s Package Policy) on the other hand packs in more covers. The basic cover bifurcates into two: one covers the structure of the building against fire and other allied perils and the second covers the contents of the house. Tenants can just opt for cover for just the contents. A HPP also offers optional covers that insure contents of your house against burglary, damage, mechanical or electrical breakdown.
It’s important to cover your house, but do not ignore the claims process. At the time of a claim the insurer will have the damaged goods inspected thoroughly. Therefore you will need to ensure that you have made the right declaration and you have sufficient proof. “Insurer can refuse claim in case of subsidence building or poorly maintained building or unauthorized construction.