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Householder’s insurance policy has been designed to cover various risks and contingencies faced by householders under a single policy. The customer can avail a comprehensive cover under one policy instead of purchasing separate policy for each contingency. This policy provides cover against various perils such as fire and allied perils, social perils and act of god perils such as burglary, theft and robbery. Jewels and valuables are covered even if they are worn by the insured and his relatives. Accidental breakdown of electrical and electronic gadgets due to any reason are also held covered.

After you decide to opt for householders’ policy, take care while choosing an insurer or intermediary. There is a base rate for the premium to be collected for each risk or contingency covered. For example, the premium for fire policy for a building (sum insured can represent the market value, where depreciation will apply or on reinstatement value where depreciation will not apply) is 50 paise per one thousand rupees and includes damages caused by fire, explosion, riots, strikes, malicious damage, flood and earthquake (terrorism is optional and the rate is 10 paise per thousand). So if your building is worth Rs.10 lakhs, your yearly premium would be Rs.600. Though there is a base rate, insurance companies can charge premium based on the risk perception as all the sections in the policy has been withdrawn from tariff regulations with effective from January 1, 2007. You need to bargain well with the insurers or intermediaries to get a best deal while purchasing the subject policy. In case of eventualities, some companies settle the claims in a fortnight’s time and some beyond that. Hence, the premium and the service by the insurer become important.

A.B. SUDHINDRA

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