Definition
Home Insurance
Home insurance protects a dwelling and its contents against perils such as fire, theft, natural disasters and certain liabilities.
In India, home insurance comes in two broad parts: structure cover for the building (rebuilding cost, not land value) and contents cover for belongings like furniture, appliances and valuables. Tenants can buy contents-only cover, while owners often buy both.
IRDAI introduced standardised retail home products such as Bharat Griha Raksha, designed to simplify cover for fire and allied perils with a built-in escalation feature. Despite low penetration, home insurance is inexpensive relative to property value and is increasingly relevant given flood and earthquake exposure across Indian cities.
Related terms
- PerilA peril is the actual cause of a loss, such as fire, flood, theft, accident or illness, against which insurance provides protection.
- Bharat Griha RakshaBharat Griha Raksha is IRDAI's standardised home insurance product covering the building and contents against fire and allied perils.
- Contents CoverContents cover insures the movable belongings inside a home, such as furniture, appliances, electronics and valuables, against insured perils.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.