Insure Your Housing Society

April 2, 2007	(1 votes, average: 3 out of 5)  Loading ...
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Insurance for cooperative housing societies has emerged as one of the crucial factors which is a little difficult to overlook. Let’s scout its need and advantages:

What Does Insurance for Cooperative Housing Societies Cover?
It covers assets of buildings including water tanks, elevator, lightning, garages, plinth, and other important facilities like electrical installations inside the building. It also provides financial security in case of accidental death or injuries due to life crash.

Does Insurance for Cooperative Housing Societies cater alone?
NO. There are different types of insurance policies available like:

• Standard Fire and Special Peril Policy
• Standard Fire and Special Peril Policy
• Public Liability Act Policy.

What Does Standard Fire and Special Peril Policy Cover?
It covers the losses arising out of:

• Fire
• Lightning
• Explosion/Implosion
• Aircraft
• Aerial Objects Falling and Destroying Property
• Riot
• Strike
• Malicious and Terrorism Damages
• Storm
• Cyclone
• Flood
• Inundation
• Impact Damage Due to Rail/ Road
• Vehicle other than owned by insured
• Subsidence/Landslide/Rockslide
• Bursting arid
• Missile Testing Operations
• Leakages from Automatic Sprinklers
• Bush Fire
• Overflowing from Tanks/Pipes

What Does Fire and Special Peril Policy Cover?
This policy provides the insurers with the protection against the losses arise out of

• Earthquake
• Loss to insured property due to vehicle impact (vehicle owned by society)
• Removal of debris (value to be declared – max 10% of the total property value)
• Architects fees (value to be declared – max 7.55 of the total required for the reconstruction if any accidental damage occurs.

What is the procedure to declare the value of the property for insurance?
Under Insurance for Cooperative Housing Societies, the building is evaluated by two methods:

• Reinstatement Value Basis: It allows the insurance of building on its future estimated cost, which can further be used for rebuilding in case of any accidental damage.
• Market Value Basis: It allows the insurance of building on depreciated reinstatement value. The building will be evaluated on the estimated cost of construction required for reinstatement, and the depreciation applied will be based on maintenance of building and life usage.

News Published Under:   Real Estate Trends |

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