Important Points in Reliance Home Insurance Plan-reliance-general-home-insurance

Some Important points to note under Householders Package Policy or Plan. These are as follows: If the property is in joint name, the plan can be taken in either name. However, NOC ( No Objection Certificate) needs to be obtained from the co-owner during claims. The Property or the Building value is calculated on the reinstatement basis which is its reconstruction value and not the market value. The following points are to be considered for calculating the Sum Insured: The built up area of the house needs to be multiplied with the current construction cost per square foot. The cost of land to be excluded from the calculation of the Sum Insured. The cost of construction of any compound wall is to be taken into consideration. An example can be taken: Mr Rudra has a house with built up area of 1500 sq feet and the cost of current construction rate is Rs 1000 per square feet, then the sum insured will be Rs 1500000/-. The Property or the Building value is calculated on the reinstatement basis which is its reconstruction value and not the market value. The following points are to be considered for calculating the Sum Insured: If the house has been rented, the tenants also can insure the contents of the home which belongs to them. However, the plan will not cover the building against any loss as tenants are not the legal owners of the property or due to tenants negligence. In case the property is sold, the insurable interest ceases and the new owner will have to take fresh home insurance plans. Partial insurance is not allowed under the plan. One can do himself the valuation of the property and its contents while purchasing the plan online.