I am living in a rented accommodation. The building is already insured by my landlord. I want to insure my domestic appliances against breakdown. Which policy should I take and how will the value of appliances be decided?
Diwakar Sharma, Bengaluru
The breakdown of domestic appliances against unforeseen and sudden physical damage due to mechanical and electrical breakdown is covered under the householder’s insurance policy. To get the appliances insured, the sum insured for appliances should represent the current replacement value of a similar item. For instance, to insure 300 litre Godrej refrigerator which is three years old, the sum insured should be equivalent to the cost price of a new 300 litre Godrej fridge and not any other fridge. This way, the event of total loss, that is in case where the item cannot be repaired, the replacement cost is paid as a claim value. However, in the event of partial damage, the claim amount payable would be the amount required to bring the damaged item to the same condition as it was prior to the damage; subject to the adequacy of the sum insured.
