Householder’s Insurance – do you need it at all?
I was just shown a video about “Householder’s Insurance”. I got a feeling it was made by an insurance salesman. In fact I am sure that it was made by a general insurance salesman.
He said you need HHI because you could lose your belongings to a fire or larceny (oh yes, this is the word he used) the common word of course is burglary. I actually do not understand general insurance too much, but burglary could mean that the door had to be broken or some such stuff. So in my head I am not sure if this will cover theft by your maid. I do not kbnow, just saying that.
What all does it cover?
Furniture, fittings, electronic items, jewelry, cash, jewelry in your bank locker, bicycles…..etc.
I already knew this. Exactly why I decided that I would rather self insure. If I got my electronic stuff insured, I am sure I would pay a big premium. When I make the claim I would be told “this covers power fluctuation…not such a huge spike’…or some such stuff. Frankly, I do not trust home insurance enough to go and get it…
What will I lose?
A refrigerator, 2 tv, 3-4 mobile phones…..washing machine, a 9 year old camera……..that is about all. Will I lose sleep over this? surely not. It should be worth less than Rs. 2L…
I know there are many readers who think we all should have HHI…..please tell me why?
Maries
http://lifeinduesseldorf.com/insurance-in-germany/
I think india is in initial stages of insurance. If you see above link there are lot of insurance in developed countries. People are taking most of this. Though some of this insurance are compulsory like health, unemployment, car (if you have one). Here people are obsessed with insurance.
Anand Sharma
I agree. But you are in favor of getting house insurance though – to cover we the cost of reconstruction in case of a natural calamity? Also, how about jewellery? Maybe HouseHolder Insurance could help cover loss of jewellery due to burglary.
Prakash
I have had homeowner’s insurance for as long as I have owned a home. Primary reason of course is compensation if the structure collapses but I have contents insured as well.
Larceny and burglary are different from a legal perspective! Larceny includes theft by maid. Does not have to be a break-in. Per my policy, a police complaint is mandatory to make a claim.
The loss in the case of a fire will be much higher than Rs. 2L. Even assuming a certain amount of de-cluttering, the cost of replacement of personal possessions, furniture (fixed and movable) and so on will be quite a bit more. Insurance will not pay the full cost of replacement but only the depreciated value. Still, worth it for me.
Sanjay
Jewellery is never covered in HHI. They generally clearly specify it in exclusions.