Bharat Griha Raksha

This Policy is meant for covering Home Building and/or Home Contents under fire insurance in India. It shall replace Standard fire & Special Perils Policy. It shall be mandatorily offered by all general insurers for all new risks as well as renewals with effect from 1st April 2021.

Scope of Cover

Policy will cover physical loss or damage, caused by Fire, lightning Explosion, implosion, riot & strike Malicious damage, Earthquake, flood, Storm, Tempest, inundation etc, Bush Fire, Forest fire, Impact damage of any kind caused by any external physical object, Missile testing operations, acts of terrorism, Bursting or overflowing of water tanks, apparatus and pipes. Leakage from automatic sprinkler installations &theft within 7 days from the occurrence of and proximately caused by any of the above Insured Events.

Special Features

Policy duration shall not be more than 10 years.

Waiver of Underinsurance, Claims settled based on replacement value without deduction for depreciation.

No Policy Excess (except for Terrorism Cover), Insurers are permitted to file innovative add-ons. Add on premium shall not exceed 50 percent of base premium.

Earthquake as a part of base cover. No option to Delete STFI and RSMD.Terrorism now part of base cover. Cover extended for theft within 7 (seven )days from the occurrence of and proximately caused by any of the Insured Events.

Fees of architect, surveyor, consulting engineer is covered i.e., upto-5%of the claim amount& cost of removing the debris covered up to 2% of the claim amount

Loss of rent & rent for alternative accommodation: amount of rent lost, or alternative rent paid while home building is not fit for living because of physical loss arising out of an insured event is covered.

Optional Covers:

The following optional covers are available under the policy on payment of additional premium.

Cover for Valuable Contents on Agreed Value Basis such as jewellery, silverware, paintings, works of art etc can be covered.

Personal Accident Cover: If the insured peril cause damage to Home Building and/or Contents also results in the death of either insured or his spouse for a Sum Insured of ₹ 5 Lakh (Rupees Five Lakh) per person.

Sum Insured:

For Home Building: Cost of Construction at the Policy Commencement date.
Carpet Area of the structure in square metres X Rate of Cost of Construction at the Commencement Date.
(The Rate of Cost of Construction is the prevailing rate of cost of construction of Home Building at the Policy Commencement Date as declared by Insured and accepted by Insurer and shown in the Policy schedule.). Each insurer shall necessarily capture the carpet area of Home Building and define the cost of construction per unit carpet area at policy commencement date to arrive at Sum Insured of the Building. SI for Reinstatement/Replacement value, as applicable, can be higher than the defined cost of construction at policy commencement multiplied by carpet area but NOT lower.

For additional structure: the amount based on the prevailing rate of Cost of Construction at the Policy Commencement Date as declared by insured and agreed by insured.
Insurance on market value basis either for building or contents is not permitted.

For Home Contents Cover: Cost of Replacement
If both Home Building and Home Contents covers are opted, General Contents up to 20% of Sum Insured for Home Building Cover subject to a max. of ₹ 10 Lakh (Rs Ten Lakh) automatically covered. unless a higher Sum Insured is opted for Home Contents and declare the details by paying additional premium.
If only Home Contents Cover is opted, insured have to declare Sum Insured for the General Contents.

Escalation for Home Building Cover:

Long-Term Policy: 10% per annum for a maximum of 100% of Sum Insured at the Policy Commencement Date

Annual Policy: Each day automatic increase of amount representing 1/365th of 10% of SI at the Policy Commencement date. In-built covers are part of basic cover and the payment under this cover will be in addition to Sum Insured for Home Building Cover