Almost 95% of my cleints who buy homes are unaware that there exists comprehensive household insurance packages, which cost very low, but cover your new home against all perils and also includes all the furniture and fixture in the home.

As part of our CRM initiatives at Pinnacle, we send a general insurance agent to the buyer after his deal is complete to assist him in getting the much needed, but very much ignored home insurance.

Its heartening to see that Housing finance companies have made it mandatory for home buyers to have home insurance. Not only are they protecting their interests, but also creating a higher level of awareness among home buyers for such under-marketed policies.

It would be nice to see builders offer such policies as part of the home purchase at no addtional cost for the 1st year. The premium is peanuts compared to the total cost of the apartment being bought by the buyer. And such an offer comes with a tangible benefit rather than plain gimmick.

Would leave the discussion open to reasons of such home insurance not being popular here in india

Ram
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  • Is the process of claiming Home isurance easy?

    I agree with you that home insurance is not so popular in India as in other developed countries. But I feel that making it mandatory, along with a home loan can be facilitating the investors in general; who usually spend millions in buying a house but refrain from insuring it.

    India as a country has been on and off bruised either by natural calamities or man-made disasters. But I'm not so sure if the investors ultimately benefit or not from procuring the insurance claims when the need arises.

    You are from Mumbai and belong to this industry? Do you have any known experiences of people who made home insurance claims of their damaged property during the devastating deluge of July,2005 in Mumbai? Was the process easy?
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  • Settlement of Insurance Claims.

    Im from Mumbai and in the Realty bussn..
    In the deluge of 26th July 2005, my bungalow was under 8 ft of water and we had 2 feet water in our office... as both are on the ground floor...
    And it was heartening to see the PSU insurance co. settle my claims promptly. I got the claim money in 4 weeks.

    2 of my cleints who stayed in ground floor apartments got their claims for loss of household goods. They were really glad that they had the home insurance

    After the July deluge, insurance co. saw a surge in cleintele who wanted to insure their homes. As of today, India is one of countries with lowest penetration ratio of home insurance and life insurance too

    If only awareness is increased, more people would come forward to take home insurance

    Ram:)
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  • How to choose the right insurance company

    If there is any reason behind the home insurance not being so popular then it is – Lack of awareness, lack of awareness, and only lack of awareness.

    Every man nurtures a dream to own a house one day. For a lay man, it takes a whole lifetime of savings to get his house constructed at a good place. And, you can never predict tantrum of the natural calamities. The deluge of 26th July is one of such havocs that we have seen the last year which underlines the significance of home insurance in today’s risky life. Still, most people are unaware of the fact that anything like HOME INSURANCE exists.

    However, with a multitude of companies, each boasting of offering the best policy than others, how to narrow down on the best one? I mean what should I consider?

    Looking forward to your replies……
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  • Originally Posted by Pinnacle
    Im from Mumbai and in the Realty bussn..
    In the deluge of 26th July 2005, my bungalow was under 8 ft of water and we had 2 feet water in our office... as both are on the ground floor...
    And it was heartening to see the PSU insurance co. settle my claims promptly. I got the claim money in 4 weeks.

    2 of my cleints who stayed in ground floor apartments got their claims for loss of household goods. They were really glad that they had the home insurance

    After the July deluge, insurance co. saw a surge in cleintele who wanted to insure their homes. As of today, India is one of countries with lowest penetration ratio of home insurance and life insurance too

    If only awareness is increased, more people would come forward to take home insurance

    Ram:)



    The incident of 26th July 2005 was a natural disaster that had affected the mass. May be this was the reason of activeness of insurance companies. And the companies got its reward in form of getting more and more insurers in the time followed.
    But, commonly at an individual level or where the reason is man made or say accidental, one has to suffer a lot in the name of formalities keeping the insurance money pending for years. This is the reason people generally do not trust on these policies.
    So need is to make the policies friendly to everyone and only insurance company can create this trust by showing activeness in handling the insurance matters.
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  • Householder policy : Look within and then Blame the Insurers.

    Mishti,
    I would say that you havent been thru the process or have not studied the entire process of claim making and settlement
    With competition in insurance sector from the private players, PSU insurer's have already pulled up their socks and gotinto the professional act category.
    90% of the time, delays in claim settlement of such policies is largely due to the improper documentation of claim settlement procedures and lack of knowledge of the Insurance Agent involved.

    If you sift through the fine prints of any insurance policy cover documents, you would surely get a perfect understanding of the entire process and that helps you tremendously to make claims faster when the need arises.
    But how many times do people actually take the pain to read such manuals or documents ? The moment they get it, its filed and forgotten.

    So its on the Policy holder's part to understand his rights and protection accorded to him. Dont blame the companies for his laziness.

    Another thing is making of inflated claims or items not covered by your policy. Underwriters and surveyors are far more smarter than you think and such inflated claims are sure to be rejected. Then there is no option for the policy holder, but to blame it all on the company. SO look before you claim. If you do it as per the rule book, your claim cannot be rejected.

    IRDA has strict regulations in places for system and procedural compliances. So even if PSU insurer's want to delay your claims, they simply cant afford to do it.
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  • Dear Pinnacle,

    I totally agree with you.

    Can you please throw some more light on basics of Home Insurance.

    I dont have my home insured and am pretty convinced from your statements and would like to move ahead in the direction.

    Parul.
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