• A home insurance policy offers you and your family financial protection against losses resulting from accidents, theft, or disasters. Most standard policies include coverage for the physical structure of your home, your personal belongings, additional living expenses, and liability protection. However, if you are considering purchasing an insurance plan for your home, it is essential to evaluate your family structure and determine which home insurance policy in India best meets your needs. To do this, you need to identify which individuals living in your household will be classified as family members and who may require extended coverage. To assist you in selecting the most suitable home insurance policy in India for your family, we have compiled a list of important details that you should understand.

What qualifies as a household member?

• Typically, home insurance policies cover the immediate or extended family members residing in your home. Extended family members may include grandparents, uncles, aunts, foster children, in-laws, cousins, and stepfamily. This also encompasses spouses, children, parents, and siblings. A relative who previously lived with you but has temporarily moved out may also be covered under these policies.

Why should I include individuals in my policy?

• In the unfortunate event that you need to file a claim on your home insurance, it is crucial to have your family members included in the policy so that they can be safeguarded in the claim process as well. Including your extended family member or spouse in your insurance policy can also help prevent any potential strained relationships with your relatives in the event of a dispute. Since home insurance policies also provide liability coverage, they can assist you in managing financial disagreements more smoothly.

If a friend moves in with me, are they covered?

• Generally, most home insurance policies do not permit you to extend coverage to any non-relative residing in your home. However, alternative options exist, such as renters’ insurance or designating your friend as a co-policyholder to safeguard their belongings and liabilities.

What if I rent out my home to multiple non-related individuals?

• Landlords who wish to rent their homes to several related or non-related individuals have the option of selecting a dwelling policy. This policy typically does not extend to individuals living in the house but focuses on protecting the physical structure from natural and man-made disasters while also securing your personal belongings, if any are present, and addressing liability situations.
• If your renters wish to have home insurance, they should seek renters’ insurance, which does not cover the house but rather protects them and their belongings. However, if multiple non-related individuals are living in one household, they may need to secure separate policies, as most insurances do not cover non-related residents.

What if I do not reside in my home but other family members do?

• In scenarios where you inhabit a separate location while your family stays in your primary residence, it is advisable to consider obtaining a dwelling policy rather than a homeowner’s policy. Although dwelling policies are typically selected by landlords, this is the most appropriate policy for your situation as homeowner’s insurance applies to the policyholder residing in their own home. Any property not utilized by you should not be included under homeowner’s insurance but rather covered by a dwelling insurance policy, ensuring that the physical structure of your house, your possessions, and any potential liability are insured. Should you wish to include your family members under the insurance, you must request that they secure renters’ insurance, even if they technically are not your tenants and are not contributing any rent

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Conclusion

• Owning a home is a dream for many of us, and when that dream is finally realized, it can be both exhilarating and daunting. Therefore, it is important for homeowners to consider acquiring the best home insurance policy in India to protect their homes and families from unforeseen incidents. Homeowners have the option to select from various types of insurance policies such as homeowners’ insurance policy, dwelling policy, or renters’ policy to meet their requirements and to extend the policy to anyone they desire to include in their dream home.

Disclaimer:

• The preceding information is intended for illustrative purposes only. For further details, please consult policy documentation and prospectus prior to finalizing any purchase.