Home Insurance in India: Building, Contents and Flood Cover (2026 Guide)
Last updated: 13 October 2026
Quick answer: Home insurance in India pays to rebuild your house or flat and replace its contents after fire, flood, earthquake, storm, landslide, riot and similar events. The standard Bharat Griha Raksha policy, offered since 1 April 2021, insures the building at construction cost, adds contents worth 20% of that (up to ₹10 lakh) free, and ignores underinsurance. A ₹24 lakh cover can cost under ₹1,000 a year.
Last updated: 13 October 2026 Quick answer: Home insurance in India pays to rebuild your house or flat and replace its contents after fire, flood, earthquake, storm, landslide, riot and similar events. The standard Bharat Griha Raksha policy, offered since 1 April 2021, insures the building at construction cost, adds contents worth 20% of that (up to ₹10 lakh) free, and ignores underinsurance. A ₹24 lakh cover can cost under ₹1,000 a year. Key takeaways Sum insured = rebuild cost: carpet area × construction rate, not the flat's market price. Free contents: 20% of building cover, capped at ₹10 lakh, without listing items. Natural calamities included: flood, storm, cyclone, earthquake and landslide are standard perils, but "flexi" versions let you drop them. Theft is limited: covered only within 7 days of an insured event unless you add burglary cover. Cost: premiums run to a few hundred rupees per ₹10 lakh, plus 18% GST. In July 2024, water entered ground-floor flats in housing societies along Pune's Sinhagad Road after heavy rain and dam releases. Families lost furniture, appliances and months of normal life. Many had a home loan, a car policy and health cover. Home insurance, the one policy that would have paid for most of the damage, is something few Indian households buy. Home insurance is among the cheapest cover a household can buy, yet it is one of the least owned. This guide explains, as of October 2026, how the standard home policy is structured, how to set the sum insured, what contents and valuables cover really means, how natural calamities are treated, and how to claim. What is home insurance, and what does it cover? Home insurance is a property policy that pays for physical loss or damage to your dwelling and its contents caused by specified events, called insured perils. In India, these policies sit under fire and allied perils insurance, which is why insurers file them as fire products. IRDAI directed general insurers to offer a standard home product, Bharat Griha Raksha , from 1 April 2021. Insurers sell it under their own names, and several now also offer "flexi" variants with optional covers. The standard version is the right benchmark for comparing any home policy. Insured perils under the standard policy Fire, explosion or implosion, and lightning Earthquake, volcanic eruption and other convulsions of nature Storm, cyclone, typhoon, tempest, hurricane, tornado, tsunami, flood and inundation Subsidence of the land, landslide and rockslide Bush or forest fire; impact damage from vehicles or objects; aircraft pressure waves Riot, strike, malicious damage and terrorism Bursting or overflowing of water tanks and pipes, and sprinkler leakage Theft within 7 days of, and caused by, any of the above Key features of the Bharat Griha Raksha home insurance policy in India How much home insurance cover do you need? The building sum insured is the cost of reconstruction , not the market value. The policy calculates it as carpet area multiplied by a declared construction rate, plus the cost of any additional structures. Land, and your share of it in a society, cannot burn or wash away, so it is not insured. Take an 800 sq ft (carpet) flat in Pune with a market value of about ₹90 lakh. At an illustrative rebuild rate of ₹3,000 per sq ft, the building cover is ₹24 lakh. That is the figure to insure. Insuring ₹90 lakh would mean paying premium on land value that can never be claimed. Bar chart showing home insurance sum insured based on construction cost versus flat market value Why underinsurance does not hurt you here Most property policies apply an "average" clause. If you insure ₹15 lakh when the true value is ₹30 lakh, a ₹4 lakh claim is cut in half. Bharat Griha Raksha waives this: underinsurance does not apply, and a partial loss is paid in full up to the sum insured. There is one guard. If your actual carpet area turns out smaller than declared, the claim is worked out on the actual area. Declare the carpet area from your agreement or the RERA-registered plan, not the larger "super built-up" figure. Our Maharashtra flat-buying checklist (/insights/buying-flat-maharashtra-rera-stamp-duty-checklist) explains where to find it. Automatic escalation keeps pace with costs Construction costs rise every year. The standard policy builds this in at no extra premium. On a one-year policy, building cover rises by 10% a year, accruing day by day. On a multi-year policy, it rises 10% of the original amount each year, up to a maximum of 100% of the original. Line chart of home insurance building sum insured escalating 10% a year on a long-term policy How are home contents and valuables covered? When you insure the building and contents together, general contents are covered automatically up to 20% of the building sum insured, capped at ₹10 lakh. You do not need to list them. In our example, that is ₹4.8 lakh of furniture, appliances, clothes and kitchen equipment, at no additional cost. You can declare a higher figure for extra premium. Valuable contents , such as jewellery, silverware, paintings, works of art, antiques and curios, are optional and insured on an agreed value. A valuation certificate is needed unless the total is up to ₹5 lakh and no single item exceeds ₹1 lakh. Bullion, unset precious stones, cash, documents and manuscripts are excluded. Cover section How the sum insured is set Example (800 sq ft Pune flat) Home building Carpet area × declared construction rate ₹24,00,000 General contents (automatic) 20% of building cover, max ₹10 lakh ₹4,80,000 at no extra cost Valuable contents (optional) Agreed value, with valuation if above limits ₹5,00,000 of jewellery: about ₹173 extra* Personal accident (optional) ₹5 lakh each for you and spouse, death due to an insured peril About ₹30 for both* Building plus contents premium Rate per ₹1,000 of cover About ₹828 + 18% GST = ₹977* *Using the illustrative rate of ₹0.345 per ₹1,000 shown in one insurer's prospectus, which includes earthquake and terrorism cover. Actual rates vary by insurer, location and seismic zone. What about burglary? This is the most misunderstood gap. Under the standard policy, theft is covered only if it happens within 7 days of, and because of, an insured event such as a fire or riot. An ordinary break-in while you are on holiday is not covered. If burglary is a real risk for you, buy a policy or add-on that includes burglary and housebreaking, which some flexi versions offer on a first-loss basis. Does home insurance cover floods and earthquakes in India? Yes, in the standard Bharat Griha Raksha policy. Flood, inundation, storm, cyclone, earthquake, landslide and subsidence are all listed perils. That is a real advantage over many countries. In the United States, for example, the federal flood programme warns that most homeowners policies do not cover flood damage, which has to be bought separately. The catch in India is the flexi variants. One insurer's flexi base policy lets buyers opt out of earthquake, flood and storm perils, and of landslide, for a lower premium. If you live on a lower floor, near a river or nala, or on a hill slope, check that these perils are switched on in your schedule before you pay. What a flood claim can include Suppose a ground-floor flat suffers ₹3 lakh of damage to flooring, walls and woodwork, and ₹2.2 lakh to furniture and appliances. The family moves out for three months at ₹25,000 a month. The standard policy can pay the repairs, replacement of contents up to the contents limit, and loss of rent or alternative accommodation while the home is unfit to live in, subject to the limits in your schedule. The policy also pays architects' and surveyors' fees up to 5% of the claim and debris removal up to 2%, with add-ons that can raise both. Keep bills and photographs from before the event; they make contents claims much faster. Exclusions to know Wilful or deliberate damage, war, and nuclear risks Electrical or electronic breakdown from short-circuit or overrunning, for the machine affected (a resulting fire is covered) Missing or mislaid items with no identifiable event Consequential losses such as lost earnings, and loss of market value after repairs Unapproved extensions larger than 10% of carpet area Typically, gradual wear, seepage and maintenance problems that are not caused by an insured event Who should buy home insurance: owners, tenants and societies Owners, buyers under an agreement for sale and tenants who are contractually responsible for the building can buy building cover. Tenants, licensees and employees can buy contents cover on its own. A landlord who lets out a flat can insure the building while the tenant insures their belongings. Many cooperative housing societies insure the common structure, but that policy rarely covers your interiors, modular kitchen or belongings, and the claim is controlled by the society. An individual policy fills that gap. If your home loan lender asked you to buy property insurance, check whether that policy covers only the loan amount and only the structure. Comparison of housing society insurance, individual home insurance and tenant contents cover How to buy the right home insurance policy Measure the carpet area from your agreement or approved plan. Pick a realistic construction rate for your type of building and city; ask the insurer what rate they accept. Insure building and contents together to get the automatic 20% contents cover. Add valuables and burglary only if you keep jewellery or costly items at home rather than in a locker. Confirm natural calamity perils are included , especially on a flexi policy. Consider a multi-year term to lock in escalation and avoid annual renewals. Read the schedule : rent limits, add-on caps and any excess. Home insurance is part of a wider protection plan. Our insurance planning guide (/insights/insurance-planning-guide-india) covers how property, life and health cover fit together, and the motor insurance guide (/insights/motor-insurance-idv-ncb-add-ons) explains flood cover for your car. A well-funded emergency reserve (/insights/emergency-fund-guide-india) handles the first weeks after a disaster, before any claim is paid. How do you make a home insurance claim? Inform the insurer as soon as possible, and the police in case of theft, riot or malicious damage. Limit further damage, photograph everything before cleaning, and keep damaged items for the surveyor. Submit the claim form with repair estimates, invoices and proof of ownership or tenancy. Steps to file a home insurance claim after flood damage in India If a claim is delayed or unfairly reduced, complain to the insurer's grievance cell first, then use IRDAI's Bima Bharosa portal or the Insurance Ombudsman. Our guide on how to complain to regulators (/insights/how-to-complain-sebi-scores-odr-ombudsman) sets out the steps, and claim settlement ratios explained (/insights/claim-settlement-ratio-explained) shows how to judge an insurer's record before you buy. Related reading Motor insurance: IDV, no-claim bonus and add-ons (/insights/motor-insurance-idv-ncb-add-ons) Buying a flat in Maharashtra: RERA and stamp duty checklist (/insights/buying-flat-maharashtra-rera-stamp-duty-checklist) Home loan guide 2026 (/insights/home-loan-guide-2026) Rent vs buy in Pune: the numbers (/insights/rent-vs-buy-pune) Personal accident and disability cover (/insights/personal-accident-disability-insurance) Insurance advisor in Pune (/insights/insurance-advisor-in-pune) Frequently Asked Questions What is the Bharat Griha Raksha policy? Bharat Griha Raksha is the standard home insurance product that IRDAI asked all general insurers offering fire insurance to sell from 1 April 2021. It covers the home building at construction cost and its contents against fire, natural calamities, riot, terrorism and similar perils. Key features include automatic contents cover of 20% of building cover (up to ₹10 lakh) and no underinsurance penalty. Should I insure my flat at market value? No. Home insurance pays to rebuild or repair the structure, so the sum insured should be the reconstruction cost: carpet area multiplied by a construction rate. Market value includes land, which is not damaged by fire or flood and is not insured. Insuring at market value raises the premium without increasing what you can claim. Does home insurance cover theft and burglary? The standard policy covers theft only within 7 days of, and caused by, an insured event such as fire, riot or flood. A routine break-in is not covered. For burglary and housebreaking cover, choose a policy or add-on that includes it, and declare valuables such as jewellery separately with a valuation where required. Is earthquake cover included in home insurance? In the standard Bharat Griha Raksha policy, earthquake and other convulsions of nature are included, along with flood, storm and landslide. Some flexi versions let you opt out of these perils for a lower premium. The earthquake portion of the premium depends on your seismic zone, so the rate varies by city. Can a tenant buy home insurance? Yes. A tenant can buy contents cover for their own furniture, appliances and belongings, while the landlord insures the building. A tenant who is responsible for insuring the building under a written agreement can also buy building cover. Contents-only policies need you to declare the sum insured. How much does home insurance cost in India? Premiums are usually quoted per ₹1,000 of cover. One insurer's illustration shows about ₹345 for ₹10 lakh of building cover including earthquake and terrorism. On that basis, ₹24 lakh of building cover with free contents costs about ₹828 plus 18% GST, roughly ₹977 a year. Rates vary by insurer, location and options. Is GST charged on home insurance? Yes, at 18%. The GST exemption from 22 September 2025 applies to individual life and health insurance only. Home insurance, like motor insurance, remains a taxable general insurance service. Sources: Outlook Business on IRDAI's Bharat Griha Raksha directive (https://www.outlookbusiness.com/personal-finance/insurance/bharat-griha-raksha-irdai-to-introduce-standard-home-insurance-policy-5829) ; New India Bharat Griha Raksha prospectus (https://www.newindia.co.in/assets/docs/know-more/fire/new-india-bharat-griha-raksha-policy/Prospectus.pdf) ; IFFCO Tokio Bharat Griha Raksha prospectus (https://www.iffcotokio.co.in/content/dam/iffcotokio/prospectus/home/bharat_griha_raksha.pdf) ; Zurich Kotak Bharat Griha Raksha prospectus (https://cms.zurichkotak.com/uploads/16_ZK_Bharat_Griha_Raksha_Prospectus_46fc7ffcce.pdf) ; Department of Financial Services on GST exemption for life and health insurance (https://financialservices.gov.in/node/3332) ; Shriram Finance on GST on home insurance (https://www.shriramfinance.in/gst/gst-on-home-insurance) ; FEMA FloodSmart (US) (https://www.floodsmart.gov/) . Worked examples are Money n Wealth calculations. Is your home, and everything in it, properly insured? The right sum insured, perils and add-ons depend on your building, floor and belongings. Talk to Money n Wealth for an insurance review (/contact) , or see our insurance services (/products/insurance) . This article is for general educational purposes only and does not constitute financial advice. Figures and examples are illustrative. Please consult a qualified financial adviser for guidance specific to your situation. Money n Wealth (Predics Fintech Services Pvt Ltd) is an AMFI-registered Mutual Fund Distributor (ARN-121995) and APMI-registered PMS Distributor (APRN07444); it is not a SEBI-registered investment adviser and may earn distribution commission on investments made through it. Insurance is the subject matter of solicitation.
Frequently Asked Questions
What is the Bharat Griha Raksha policy?
Bharat Griha Raksha is the standard home insurance product that IRDAI asked all general insurers offering fire insurance to sell from 1 April 2021. It covers the home building at construction cost and its contents against fire, natural calamities, riot, terrorism and similar perils. Key features include automatic contents cover of 20% of building cover (up to ₹10 lakh) and no underinsurance penalty.
Should I insure my flat at market value?
No. Home insurance pays to rebuild or repair the structure, so the sum insured should be the reconstruction cost: carpet area multiplied by a construction rate. Market value includes land, which is not damaged by fire or flood and is not insured. Insuring at market value raises the premium without increasing what you can claim.
Does home insurance cover theft and burglary?
The standard policy covers theft only within 7 days of, and caused by, an insured event such as fire, riot or flood. A routine break-in is not covered. For burglary and housebreaking cover, choose a policy or add-on that includes it, and declare valuables such as jewellery separately with a valuation where required.
Is earthquake cover included in home insurance?
In the standard Bharat Griha Raksha policy, earthquake and other convulsions of nature are included, along with flood, storm and landslide. Some flexi versions let you opt out of these perils for a lower premium. The earthquake portion of the premium depends on your seismic zone, so the rate varies by city.
Can a tenant buy home insurance?
Yes. A tenant can buy contents cover for their own furniture, appliances and belongings, while the landlord insures the building. A tenant who is responsible for insuring the building under a written agreement can also buy building cover. Contents-only policies need you to declare the sum insured.
How much does home insurance cost in India?
Premiums are usually quoted per ₹1,000 of cover. One insurer's illustration shows about ₹345 for ₹10 lakh of building cover including earthquake and terrorism. On that basis, ₹24 lakh of building cover with free contents costs about ₹828 plus 18% GST, roughly ₹977 a year. Rates vary by insurer, location and options.
Is GST charged on home insurance?
Yes, at 18%. The GST exemption from 22 September 2025 applies to individual life and health insurance only. Home insurance, like motor insurance, remains a taxable general insurance service.
Is your home, and everything in it, properly insured?
The right sum insured, perils and add-ons depend on your building, floor and belongings. Talk to Money n Wealth for an insurance review , or see our insurance services .
