A home policy usually has two parts, and you can buy either one or both:

• Building (structure): walls, roof, floors, fixed fittings, and permanent fixtures such as wiring and plumbing.

• Contents: furniture, appliances, clothes, electronics, and other household goods.

Most policies pay for damage caused by:

• Fire, lightning, explosion and implosion

• Storm, cyclone, flood and inundation

• Earthquake, landslide and subsidence

• Riot, strike and malicious damage

• Bursting or overflowing of water tanks and pipes

• Impact by vehicles or falling objects

For families in cyclone-prone areas, the storm and flood cover matters most. Many homeowners in Odisha learned this after Cyclone Fani in 2019, when repair bills ran far beyond what their savings could handle.

Since April 2021, IRDAI has required general insurers to offer a standard home policy called Bharat Griha Raksha. Because the core wording is the same across insurers, plans are easier to compare.

Key features include:

• Building and contents cover in one policy, against the perils listed above.

• Automatic cover for general contents, up to a set share of the building sum insured, without listing each item.

• Rent for alternative accommodation while your home is being repaired after a covered loss.

• Optional cover for valuables such as jewellery and art, if you declare them.

Insurers can offer add-ons on top of this standard base. Our fire and burglary insurance page explains how property cover works for both homes and businesses.

Knowing the exclusions matters as much as knowing the cover. Common ones include:

• Wear and tear, rust, dampness and gradual damage

• Theft, unless you add burglary cover

• Electrical or mechanical breakdown of appliances

• Cash, documents and undeclared valuables

• War, nuclear risks and deliberate damage

• Damage while the home is left empty for a long period, beyond the limit in your policy

In our experience, most rejected home claims involve slow damage, such as seepage that built up over months, rather than a sudden event. Fix leaks early, and keep repair records.

Getting the sum insured right is the most important part of buying home insurance in India.

For the building, insure the cost of rebuilding, not the market price. A flat’s market price includes the value of the land, which a fire or flood cannot destroy. For example, a 1,000 sq ft flat with an assumed construction cost of ₹2,500 per sq ft needs about ₹25 lakh of building cover, even if it would sell for ₹70 lakh.

For contents, add up what it would cost to replace your furniture, appliances and electronics today. Walk through each room and list the larger items. Most families underestimate this figure.

Under policies that apply an average clause, underinsurance cuts your claim in proportion. If a building worth ₹25 lakh is insured for ₹15 lakh, a ₹5 lakh loss may be settled at about ₹3 lakh. Check how your policy handles this, and review the sum insured every few years.

Add-ons fill the gaps in a standard home policy. These are the most useful:

• Burglary and theft: covers loss from break-ins, which the base fire-and-perils cover excludes.

• Jewellery and valuables: covers declared items such as gold, silver and artwork, usually with a valuation.

• Portable equipment: covers laptops, cameras and phones, sometimes even outside the home.

• Electrical and mechanical breakdown: covers appliances such as ACs and refrigerators.

• Personal accident: pays a benefit if you or your spouse die or are disabled in an accident.

• Public liability: covers injury or damage to others caused by your property.

Pick add-ons based on what you actually own and where you live. A family in a gated apartment may need less burglary cover than one in a standalone house.

A few tips from our advisors before you buy:

• Insure early, ideally when you take possession or sign your rent agreement.

• Consider a long-term policy for the building, which many insurers offer for several years at once.

• Declare your home accurately, including its location, construction type, and any business use.

• Keep an inventory with photos and bills of major items.

• Protect your home loan too. Home insurance covers the property, not the loan if the earning member dies. A term insurance plan covers that risk.

If you need to claim:

1. Inform your insurer as soon as possible after the loss.

2. File a police report for theft, burglary or riot damage.

3. Take photos and videos of the damage before cleaning up.

4. Stop further damage, for example by shutting off water, but keep the damaged items for the surveyor.

5. Submit documents, including the claim form, policy copy, bills, repair estimates and the police report, if any.

Home insurance in India is an affordable way to protect your largest asset from fire, floods, cyclones, and theft. Insure the building at its rebuilding cost, list your contents honestly, add the add-ons that match your risks, and keep records ready for a claim. To compare home insurance plans from multiple insurers, book a free consultation with an Excel India advisor.