This is because electronics like televisions and music players are reimbursed at "market value," which is the price at which you bought it minus depreciation. Thus, getting insurance for electronics only makes sense in the first few years of buying them. Some companies may require separate coverage for laptops and computers. Also, these items may not be covered if stolen when they are outside your home.
Insurance companies have varying policies for covering jewelry. If you take burglary and theft cover from ICICI Lombard, for instance, it covers the loss of jewelry, silver articles and precious stones only up to 25% of the total content sum insured or 100,000 rupees ($2,220), whichever is lower.
You can get full coverage on jewelry from some companies provided you submit a report by a government-approved jeweler about the jewelry's value, says Mr. Sethi.
Valuable paintings or art work are not covered in a standard home-insurance policy, so you might need to insure that separately. To determine if contents insurance makes sense for you, list the most valuable items in your home. Check with the insurance company or broker whether each of those items will be covered, and what you will receive at the time of making a claim. Go over the policy's "exclusion" list carefully.
Insurance executives advise against under-insuring your property, because an insurance company can reject your claim saying you didn't not declare and insure property on its full value.
Many insurance companies don't cover documents so you might want to scan and save a copy online. Do the same with your insurance policy. "Maybe you should keep a copy in the office," says Amarnath Ananthanarayanan, chief executive officer of Bharti AXA General Insurance Co |
