New Launch - India Real Estate Report 2026.
Home insurance often gets less attention than the loan, registration and construction costs associated with buying a property.
Bharat Griha Raksha is designed to change that. Introduced under IRDAI's standard product framework, it provides a structured home insurance option available from insurers including National Insurance, HDFC ERGO, ICICI Lombard, IFFCO-Tokio, Royal Sundaram and SBI General.
It can cover the building, its contents or both, depending on the cover selected.
What the Building Cover Protects
Under the SBI General version, building cover protects the home against a specified range of risks:
- Fire, explosion, implosion, lightning
- Earthquake, storm, cyclone, typhoon, tornado, tsunami, flood and inundation
- Landslide, rockslide, bush or forest fire, impact damage
- Riots, strikes and malicious damage
- Water tanks, apparatus, pipes and sprinkler-system leakage
The policy is not a blanket guarantee against every type of damage.
The event causing the loss must fall within the policy's insured perils.
Exclusions include war-related risks, nuclear risks, deliberate or intentional acts, certain electrical and electronic equipment losses, vehicles, bullion, unset precious stones and certain other property unless specifically covered.
How the Building Sum Insured Is Calculated
The building sum insured is based on reconstruction cost, not the market value of the property including land.
The SBI General version calculates it using the carpet area of the home multiplied by the accepted prevailing construction cost per square metre.
For a 100 sqm home at ₹20,000 per sqm, the building sum insured would be ₹20 lakh regardless of the property's purchase price or current market value.
Underinsurance: How Bharat Griha Raksha Handles It
The policy removes the conventional underinsurance penalty. If the sum insured calculated from the policyholder's information is lower than the actual value at risk, that difference does not automatically reduce the claim amount.
However, accurate information remains important if a homeowner declares 120 sqm when the actual area is 100 sqm, the claim is calculated using the actual carpet area.
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Contents Cover: What It Includes and What It Doesn't
Tenants can purchase contents cover even if they cannot insure the building. General household contents under the SBI General version include furniture, fittings, televisions, phones, electronic equipment, air conditioners and kitchen appliances for personal, non-commercial use.
General contents are automatically covered at 20% of the building sum insured, subject to a maximum of ₹10 lakh. Additional contents cover can be added. Valuables such as jewellery, artwork and antiques require optional agreed-value cover they are not automatically fully covered under standard contents insurance.
If the Home Becomes Unlivable
If physical loss from an insured event makes the home unfit for occupation, the SBI General policy covers loss of rent and reasonable alternative accommodation costs.
Architect, surveyor and consulting engineer fees are covered up to 5% of the claim amount.
Debris removal costs are covered up to 2% of the claim amount. Personal accident cover of ₹5 lakh each for the insured and spouse is available as an optional add-on, covering accidental death arising from fire and allied perils.
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How Long the Policy Runs
Bharat Griha Raksha can be purchased for one to ten years. Annual and long-term policies include automatic escalation of the sum insured by 10%, reflecting rising reconstruction costs over time.
Homeowners, landlords and tenants should compare policy wording, premiums, sum insured, optional covers and exclusions before purchasing, as a standardised product does not mean identical pricing or documentation across every insurer.
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