In my new house that I am building, I plan to concert the first floor into an office, with the ground floor as my residence. Will a householder’s policy cover both the floors? How will the compensation be paid?
Balbir Singh, Noida
A householder’s policy has two sections. The first one provides insurance cover for the structure and the second for household goods and contents. You can buy separate policies- one to cover the structure and the other to cover contents. You can also buy a common policy covering both. A householder’s policy can be bought for a building only when it is used for residential purposes and not for commercial purposes. So, the first floor being used for official purposes will not be covered under this policy. For that you can take a comprehensive cover under the shopkeeper’s insurance policy to insure the structure and office goods. In the event of a mishap that may arise due to insured perils such as fire, lightning or earthquake, the reconstruction cost of the building, subject to the sum insured, is paid to the policyholder.