According to me any body going for a home insurance must see and evaluate all the facts before making a final desision for a home insurance.
I would like to forward my observations on Home Insurance Schemes, generally available in our country. And I must say it is not in favour of consumer. But one must have it just for self belief that he has insured his/her home.
Normally all the leading companies have similar methology and criteria to calculate a premium, eligibility, and Sum Assured for a home insurance cover.And the S.A = Bult-Up X Construction Rate of that flat* (condition apply). Now this Construction Rate vary from area to area.
The basic principle of a 'Home Insurance' is to re-built your home in case of some unfortunate/disastor.
Now when any body go for a home insurance, his/her S.A. is decided as per prevailing Contruction Rate multiply by Built-Up area of the flat. Now if something (disaster) happen after 8-10 year of the policy, then the S.A received (maximum to maximum) at that time will be unsufficient to re-construct the same home, because by that time the construction rate will be very very high. So the basic principal is defeated.
