Insurance for Building

Building insurance is a type of insurance that protects the physical structure of a building and its permanent fixtures. This insurance covers unforeseen events that can cause damage to a building's walls, roof, floors, cabinets, and other built-in features. It's like a safety net that provides financial assistance in case of any damage to a building.

How does Building Insurance work?

When you purchase an insurance policy for your building, you agree to pay a regular amount, known as a premium, to the insurance company. In return, the insurance company promises to reimburse you if your building is damaged by a covered event, such as fire, flood, or earthquake.

If your building is damaged by a covered event, you will need to file a claim with the insurance company. This involves providing information about the damage and the circumstances surrounding the event. The insurance company will then assess the damage and determine the cost of repairs or rebuilding.

Assuming the damage is covered under your policy, the insurance company will then reimburse you for the cost of repairs or rebuilding, up to the policy limits. This means that you will not have to pay for the repairs out of your pocket, as long as the cost of repairs falls within the limits of your policy. However, if the damage exceeds your policy limits, you may be responsible for paying the difference.

What Does Building Insurance Typically Cover?

Here are 14 items that are typically covered by building insurance:

1. Fire

2. Explosion or Implosion

3. Lightning

4. Earthquake, volcanic eruption, or other convulsions of nature

5. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Tsunami, Flood and Inundation

6. Subsidence of the land on which Your Home Building stands, Landslide, Rockslide

7. Bush fire, Forest Fire, Jungle Fire

8. Impact damage of any kind, i.e., damage caused by the impact of, or collision caused by any external physical object (e.g. vehicle, falling trees, aircraft, wall etc.)

9. Missile testing operations

10. Riot, Strikes, Malicious Damages

11. Acts of terrorism

12. Bursting or overflowing of water tanks, apparatus and pipes

13. Leakage from automatic sprinkler installations

14. Theft within 7 days from the occurrence of and approximately caused by any of the above Insured Events.

Exclusion from Building Insurance

The building insurance policy does not cover losses and expenses arising from certain events. The following are the exclusions under the policy:

Any loss or damage caused intentionally or willfully by you or anyone acting on your behalf or with your connivance.Loss or damage caused by war, invasion, hostilities, civil war, mutiny, civil commotion, military rising, rebellion, revolution, insurrection, or military or usurped power.

Loss or damage caused by ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste.

Pollution or contamination, unless it has resulted from an insured event or the insured event itself results from pollution or contamination.

Loss or damage to any electrical or electronic machine, apparatus, fixture, or fitting caused by over-running, excessive pressure, short-circuiting, arcing, self-heating, or leakage of electricity.

Further, loss or damage to bullion or unset precious stones, manuscripts, plans, drawings, securities, obligations or documents of any kind, coins or paper money, cheques, vehicles, and explosive substances unless otherwise expressly stated in the policy.

The loss of any insured property that is missing or has been mislaid or its disappearance cannot be linked to any single identifiable event.

Loss or damage to any insured property removed from your home to any other place.

Loss of earnings, loss by delay, loss of market, or any other consequential or indirect loss or damage of any kind or description whatsoever.

Any reduction in market value of any insured property after its repair or reinstatement.

Any addition, extension, or alteration to any structure of your home building that increases its carpet area by more than 10% of the carpet area existing at the commencement date or on the date of renewal of this policy, unless you have paid an additional premium and such addition, extension, or alteration is added by endorsement.

Lastly, costs, fees, or expenses for preparing any claim.

Insurance for Building - Claim Process to Payment

If you need to file a claim for your building insurance, it's important to follow the correct procedure to ensure a smooth process. In the event of an incident that may give rise to a claim, you must notify the company immediately over the phone or email at customer.services@royalsundaram.in, or provide written intimation within 14 days. You'll then need to furnish the company with detailed particulars of the amount of the loss or damage, along with an explanation and evidence to substantiate the claim as required.

The company may also require you to produce additional documents, such as plans, specification books, vouchers, invoices, duplicates or copies thereof, documents, proofs, and information regarding the claim. If necessary, the company will appoint surveyors/investigators, and it shall be entitled on your behalf to have absolute conduct and control of all or any proceedings it may consider necessary for tracing and recovering the property lost.

The required documents to substantiate a claim will vary depending on the coverage, and you should refer to the policy for specific details. However, for fire claims, you'll need a duly completed claim form, first information report, paper cuttings or media reporting of the incident, fire brigade report (in case of loss, destruction, or damage by fire), and a meteorological report (in case of loss, destruction, or damage by flood, storm, cyclone), among other things.

Once all necessary documents have been received, benefits payable under the policy will be paid within 30 days. The company shall be liable to pay any interest at 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed, for sums paid or payable under this policy, upon acceptance of an offer of settlement by the insured but there is a delay in payment beyond 7 days from the date of acceptance.

Conclusion

Building insurance is a crucial investment for any property owner. It offers financial protection against unforeseen events that could damage the building's structure and fixtures. When choosing an insurance provider, it is important to consider factors such as coverage, premiums, and customer service.

Royal Sundaram offers comprehensive insurance policies that cover a wide range of events and provide excellent customer service. With their expertise and experience in the insurance industry, choosing Royal Sundaram for insurance is a smart choice.