Home Insurance in India: What You Need to Know

Home insurance in India covers your residential property against financial losses from fire, natural disasters, theft, and structural damage, yet it remains one of the most underutilised insurance categories despite covering most families' largest asset. There are two primary types of coverage. Building or structure insurance covers the physical structure of your home — walls, roof, floors, built-in fixtures, and permanent installations.

In case of fire, earthquake, flood, or other insured perils, the insurer pays for repair or rebuilding costs. This type is often mandatory for home loan borrowers, as lenders require it to protect the collateral. Contents insurance covers the movable items inside your home — furniture, appliances, electronics, clothing, jewellery (up to a limit), and other valuables.

Loss or damage due to theft, fire, water damage, or specified perils is covered. You can buy structure-only, contents-only, or combined policies. Key features to compare: the list of covered perils (fire, earthquake, flood, cyclone, landslide, burglary), whether earthquake coverage is included or needs to be added as a rider, the reinstatement or replacement value basis versus market value, coverage for jewellery and valuables (usually capped and may need additional floater), and temporary accommodation costs if your home is uninhabitable during repairs.

Premiums are relatively affordable: Rs 2,000-5,000 per year for a structure insured at Rs 50 lakh, and Rs 1,000-3,000 for Rs 5-10 lakh contents cover. Key exclusions: damage from wear and tear, poor maintenance, gradual deterioration, and negligence. Earthquakes and floods are increasingly relevant risks in India — ensure your policy includes these.

Leading home insurance providers include HDFC ERGO, ICICI Lombard, Bajaj Allianz, and New India Assurance.