Episode 14 of Insurance Awareness Series. Householders Insurance and Shopkeepers Insurance.

Summary

In Episode 14 of the Insurance Awareness Series, Mr. Deepak Godbole explains two essential insurance policies: Householders and Shopkeepers Insurance. Householders Insurance provides comprehensive coverage for homes, including protection against fire, burglary, and natural calamities, while insuring both property and contents at market or replacement value. Shopkeepers Insurance, on the other hand, safeguards small businesses from risks like fire, theft, and accidents, covering property, contents, and liabilities. Both policies emphasize the importance of risk management and timely reporting for claims. These policies aim to ensure peace of mind, allowing homeowners and shopkeepers to focus on their lives and businesses without unnecessary stress.

Takeaways

• 😀 Householders insurance is a packaged policy that covers both the building and its contents, including furniture, fixtures, kitchen items, and more.
• 😀 Contents are insured based on market value, while electrical items are covered for their replacement value.
• 😀 Property valuation for householders insurance is based on the built-up area of the property and the cost of construction per square foot.
• 😀 Shopkeepers insurance is specifically designed for small shop owners and covers both the shop building and its contents.
• 😀 Shopkeepers insurance provides indemnity for risks like fire, earthquake, riots, and other natural perils.
• 😀 The policy for shopkeepers also covers money, pedal cycles, plate glass, signs, and personal accidents, in addition to business interruption.
• 😀 Some exclusions from both policies include loss due to depreciation, wear and tear, pollution, and nuclear risks.
• 😀 In case of a claim, the insured must inform relevant authorities, such as the fire brigade or police, and report the loss to the insurance company.
• 😀 Householders insurance also protects against burglary, housebreaking, mechanical breakdown of appliances, and accidental damage.
• 😀 Both policies aim to provide peace of mind by mitigating the financial risks for homeowners and shopkeepers, allowing them to focus on their daily life or business activities.

Q & A

What is a householders insurance policy?

A householders insurance policy is a packaged policy that covers both the building and contents of a home. It includes protection for furniture, fixtures, fittings, kitchen items, and other domestic belongings.

What types of items are covered under household contents insurance?

Household contents insurance covers items such as furniture, fixtures, fittings, linen, clothing, kitchen items, cutlery, crockery, and other domestic items for which the insured is accountable.

How is property valuation done for householders insurance?

Property valuation for householders insurance is determined by multiplying the built-up area of the property with the cost of construction per square foot.

What is covered under a shopkeepers insurance policy?

A shopkeepers insurance policy covers property and business interests, including protection for the shop building, its contents, money, personal accidents, liability, business interruption, and more.

What are the key benefits of a shopkeepers insurance policy?

The key benefits of a shopkeepers insurance policy include protection against loss or damage to property from fire, earthquake, explosions, riots, burglary, and other risks, along with coverage for the shop's contents and business-related risks.

What are the exclusions in shopkeepers insurance?

Exclusions in shopkeepers insurance include damage caused by wear and tear, depreciation, pollution or contamination, consequential losses, and losses due to war or nuclear perils.

Can tenants also be covered under householders insurance?

Yes, householders insurance covers not only the property owners but also tenants, offering protection for the contents of the home.

What should the insured do in case of a claim under these policies?

In case of a claim, the insured must take necessary steps to minimize the loss or damage, such as informing the fire brigade in case of fire or the police in case of theft or burglary, and notifying the insurance company.

What risks are specifically covered under shopkeepers insurance?

Shopkeepers insurance covers risks such as fire, theft, burglary, mechanical and electrical breakdown, business interruptions, and other natural and man-made disasters like earthquakes and riots.

How does householders insurance differ from shopkeepers insurance?

Householders insurance is designed to protect residential property and its contents, while shopkeepers insurance specifically addresses the risks and needs of business owners, covering both their property and business operations.