Insurance is the transfer of risk from one party to another in exchange for a payment (premium). In general, it’s a way for individuals to pool their risk against unpleasant events which have a low probability of occurring but whose occurrence would have a severe negative financial consequence on the individual or on his or her family.

House insurance in India is a type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

The Indian House insurance market consists of products that offer protection broadly related to each of the following –

1.            Structure

2.            Contents

3.            Accidents/Liabilities

4.            Mortgage

Most House insurance policies sold in India offer protection related to either one of the above or a combination of the above.

Let us look at the benefits offered by the different product types listed above.

Structure –

Such policies offer protection against losses to the structure of the house due to any natural and man-made calamities.

Having researched various products offered by general insurance companies in India, the most common types of benefits offered under such a policy are:

Protection against loss or damage caused to the building used as residential homes due to fire and special perils including -

•             Fire

•             Lightning

•             Explosion/Implosion (excluding boilers, pressure vessels)

•             Aircraft Damage

•             Riot, Strike and Malicious Damage

•             Earthquake (Fire and Shock)

•             Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation

•             Impact Damage

•             Subsidence and Landslide including Rock-slide

•             Bursting and/or overflowing of water tanks, apparatus and pipes

•             Missile Testing Operations

•             Leakage from Automatic Sprinkler Installations

•             Bush Fire

•             Further, on payment of additional premium, Terrorism Cover can be opted for.

•             Impact damage from rail or road, vehicles or animals, riot

Standard exclusions under such polices usually include but are not limited to the following –

•             Wilful acts or gross negligence

•             Destruction/Damage by own fermentation, natural heating or spontaneous combustion

•             Explosion/Implosion damage to boilers, damage caused by centrifugal forces

•             War and nuclear group of perils

•             Pollution and contamination

•             Volcanic eruption or other convulsions of nature

•             Burning of Property by Public Authority

Source: [ https://medium.com/@akanshasingh2904/house-insurance-in-india-a-brief-overview-2a5589b0b10a#.y0vfb1d4v ]