Home insurance in India — building, contents, and why most owners don't buy it

Quick frame: Home insurance has two parts. Building cover protects the structure (fire, earthquake, flood, civil disturbance). Contents cover protects what's inside (electronics, jewellery, furniture). Annual premium for ₹50 lakh combined cover: ~₹4,000-5,000. Mandatory for most home loans. Most owners skip it once loan is repaid — a mistake.

Why most Indians skip home insurance

Lazy thinking: "Earthquakes don't happen here." But:

• 2023 Sikkim flood damaged thousands of homes
• 2024 Chennai cyclone caused ₹10,000 cr losses
• Mumbai annual flooding repeats every monsoon
• Delhi NCR earthquake risk is medium-high (zone IV)

Annual cost is < 0.01% of property value. The downside risk is total loss.

Building cover

Protects the structure of your home from:

• Fire, lightning, explosion
• Riots, strikes, malicious damage
• Earthquake (sometimes optional add-on)
• Flood, storm, cyclone, water damage
• Burglary (sometimes optional)

Sum insured: typically ₹2,500/sqft (metro) × built-up area. So a 1,200 sqft flat = ₹30 lakh building cover. Covers reinstatement.

Contents cover

Protects what's inside:

• Electronics (TV, laptop, phones)
• Furniture
• Appliances (fridge, AC, washing machine)
• Jewellery (with valuation certificate, separate sub-limit)
• Cash (sub-limit usually ₹50k)

Sum insured: 15-30% of building cover, or based on actual valuation.

Premium math

Sum insured × 0.05-0.1% per annum. For ₹50 lakh combined: ₹2,500-5,000/year.

Compared to actually paying for damage out of pocket — trivial.

Use the Home Insurance Calculator to size the right cover.

What's NOT covered

• Wear and tear
• Negligent damage by occupant
• War / terrorism (sometimes covered, ask)
• Acts of God in some specific exclusions
• Pre-existing structural defects

Always read "What is not covered" before buying.

FAQ

Q. For renters? A. Building cover by landlord. Contents cover by you. ₹2-5k/yr for ₹5L contents.

Q. Combined or separate plans? A. Combined plans typically cheaper by ~10%. Pick combined unless specific reason.

Q. Earthquake add-on premium? A. Add ~10-20% to base premium. In zones IV-V (Delhi NCR, Sikkim, Andaman) it's strongly recommended.

Q. Term insurance vs home insurance? A. Different products. Term covers your life (death benefit to family). Home covers your property. Both needed.