Home Insurance

Ques: Is it necessary to produce bills of purchase while taking the insurance cover for my contents?

Asked By: | In: Home Insurance

Ans: No, you do not need to produce bills of purchase while taking insurance for your contents.

Ques: What is market value and reinstatement value?

Asked By: | In: Home Insurance

Ans: “Market Value” means Replacement Value less depreciation. “Reinstatement Value” means the cost of replacing or reinstating on the same site, property of the same kind or type but not superior to or more extensive than the insured property when new.

Ques: What are the criteria for arriving at the cost of construction?

Asked By: | In: Home Insurance

Ans: Cost of construction includes material and labour cost/sq. ft. In a place like Delhi cost of construction varies from Rs800/sq ft. to Rs1200/sq ft. depending on the quality of construction. Home Insurance in India is also quite cheap and hence you won’t have too much trouble while buying it.

Ques: Can I insure my House for the value for which I have purchased?

Asked By: | In: Home Insurance

Ans: Sum Insured for your house excludes the cost of land. Sum Insured is calculated as follows- Covered Area (Sq. ft) * Cost of construction (per sq. ft) = SI for your Building E.g. (400sq ft) * (Rs 700/sq ft) = Rs 280000/-(SI of Building).