Yes, as with most other financial instruments, there are certain criteria that one must fulfil in order to obtain a home insurance.
Please note that eligibility criteria for a home or property insurance is a very subjective topic and hence, varies from company to company. However, most companies have very few requirements as eligibility criteria for taking a home insurance.
These requirements are:
• Individuals or companies can buy home insurance policy. To purchase a home insurance, one must be an Indian resident and either the owner or occupant of a property.
• Multi-year home insurance policy, however, can be purchased only by the owner of the house/flat/apartment
• If you want to buy a home insurance for a society, any authorized member of the particular society’s managing committee can make the purchase. The policy will be issued in the name of the society and will cover the society building as well as the utilities that are for common use in the society.
• Tenants, too, can purchase home insurance. Many insurance companies give cover for home contents to tenants as well. Content insurance will cover a tenant’s possessions against loss or damage by lightning, fire, theft, smoke, flood, etc. Everything from your own personal belongings, furniture, big-ticket electrical items including washing machines, fridge, dryers, etc. can be covered under a home insurance. It is of paramount importance that you read the fine print carefully before buying a home insurance cover as a tenant.
Like with the case of eligibility, what an insurance company covers, too is subjective. For example, certain insurers will not cover contents of the home if you live in a shared accommodation. This is why you must familiarise yourself with the insurance policy as much as possible. This will allow you to understand exactly what is covered and what is excluded by the insurance policy.