Home Insurance Policies for NRIs

The quality of real estate properties in India is improving day by day. The real estate developers and builders in India are using better quality products during the construction of the real estate properties. The returns on these real estate properties are also highly beneficial. Therefore, the number of investors from all over the world has been consistently growing and enjoying the benefits of real estate industry in India. There are many reasons why there is increasing investment in the real estate industry by NRIs. From time to time the Indian government also motivates the NRIs by declaring various reforms and relaxations.

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Although, the government of India and the legal system provide support to the NRIs investing in India, there are various concerns. These days the NRIs wish to secure their homes by the means of home insurance. Leading financial institutes and insurance companies offer home insurance schemes. Under such schemes, the structure and/or contents of the home are protected as per the preference of the owner. The home insurance policy covers damage done by natural calamities as well as humans. 

The sum insured under the home insurance policy is for structure of the home; however, it is calculated according to the reconstruction value of the home i.e. the cost incurred after the damage and not according to the market value of the home. The reconstruction value is based on the material and labour used in the home. Similarly, while setting the value of the contents of the home, the future depreciation value is calculated.

There are home insurance policies that offer additional options like that of coverage of additional expenses like rent in case the owner has to move in a rented accommodation while the reconstruction is done. To sum up, the sum insured in the policy and the additional benefits ultimately depend on the location, area and condition of the house at the time of insurance.

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Tags : NRI policies, government regulations and taxation laws for NRI, NRI investments in Indian real estate.