Two kinds of insurance that many Indian families skip until it's too late: travel insurance for trips abroad, and home insurance for the house they've spent years paying for. Both are relatively inexpensive compared to what they protect, and both are easy to understand once you know what to look for. This guide covers overseas travel insurance — including the Schengen visa requirement — and then home insurance for your building and belongings.
Overseas travel insurance: why you need it
Your Indian health insurance policy usually covers treatment only in India. Some plans include limited overseas cover for specified illnesses, but most don't pay for a broken ankle in Bali or a hospital stay in London. Medical costs in many countries are far higher than at home, and hospitals may ask for proof of payment before treatment.
What it covers
| Cover | What it pays for |
|---|---|
| Medical expenses | Hospitalisation, emergency treatment and sometimes outpatient care abroad |
| Medical evacuation and repatriation | Transport to a suitable hospital or back to India; repatriation of remains |
| Baggage loss or delay | Compensation for lost checked-in baggage, or essentials bought while bags are delayed |
| Passport loss | Costs of getting a duplicate or emergency travel document |
| Trip delay or cancellation | Extra costs or non-refundable bookings, for covered reasons |
| Personal liability | Damage or injury you accidentally cause to others abroad |
| Personal accident | A fixed benefit for accidental death or disability during the trip |
Benefits, limits and deductibles vary a lot between plans. Some cover only emergencies; others include dental emergencies, home burglary while you're away, or adventure sports.
The Schengen visa requirement
If you are applying for a Schengen visa — for most of continental Europe — you must have travel medical insurance with a minimum cover of €30,000. The policy must:
- Be valid across all Schengen member states
- Cover the entire duration of your stay
- Include emergency medical treatment, hospitalisation and repatriation, including for medical reasons
Embassies may reject applications where the policy falls short. Many travellers choose cover well above the minimum, since a serious hospitalisation in Europe can exceed €30,000. Check the latest requirements on the official embassy or visa centre website before you apply.
Buy travel insurance as soon as you book your trip, not at the airport. Trip cancellation cover only helps if the policy was in place before the reason for cancelling arose.
Tips for buying travel insurance
- Declare pre-existing conditions. Many plans exclude them or cover only life-threatening emergencies related to them. Non-disclosure can lead to a rejected claim.
- Senior citizens: premiums and conditions vary with age. Compare carefully.
- Students going abroad: look at dedicated student travel plans; universities often specify minimum requirements.
- Frequent travellers: an annual multi-trip plan may be more convenient than buying for each trip.
- Keep the insurer's 24x7 assistance number handy. For a hospital stay abroad, call them first — they can arrange cashless treatment at many hospitals.
- Keep every receipt and get a written report for any loss (police report for theft, airline report for baggage).
Home insurance: structure vs contents
Many people assume their home loan comes with adequate cover, or that home insurance is only for expensive properties. In reality, a fire, flood, burglary or earthquake can damage a home of any size, and the cost of rebuilding or replacing belongings can run into lakhs. A home loan-linked policy, if you have one, may only protect the lender's interest.
A home insurance policy can cover two things, separately or together:
- Structure (building): the walls, roof, floors, fixtures and permanent fittings. It is usually insured for the cost of reconstruction, not the market value of the property (which includes land).
- Contents: furniture, electronics, appliances, clothing and household goods. Jewellery and valuables usually need to be declared and may have specific limits.
If you live in a rented home, you can insure your contents even though you don't own the structure.
Fire and allied perils
Most home policies are built around fire and allied perils, which typically include:
- Fire, lightning and explosion
- Storm, cyclone, flood and inundation
- Earthquake and landslide
- Riots, strikes and malicious damage
- Impact damage, such as a vehicle hitting your wall
- Bursting of water tanks and pipes
Burglary and theft are often covered as part of a home package or as an add-on. Check what your policy includes.
Bharat Griha Raksha, the standard home policy
IRDAI introduced Bharat Griha Raksha as a standard home insurance product, so that core cover would look similar across insurers. Key features include:
- Cover for the home building and its contents against a defined list of perils, including fire and natural catastrophes.
- Building cover on a reinstatement basis, so you're paid the cost of rebuilding rather than a depreciated value.
- Contents covered up to a set proportion of the building sum insured without a detailed list, with the option to declare more.
- Additional benefits such as rent for alternative accommodation while your home is being rebuilt.
IRDAI rules on standard products evolve, and insurers may offer it alongside or within their own home packages. Ask for the current version and read the policy wording for exact limits.
Choosing the right sum insured
- For the structure, estimate the construction cost per square foot in your city multiplied by the built-up area. A local builder or engineer can help.
- For contents, walk through your home and list major items with approximate replacement values.
- Avoid under-insurance. If you insure for less than the actual value, some policies reduce claims proportionately.
Frequently asked questions
Does my health insurance cover me abroad?
Usually not, or only for limited situations. Check your policy wording; for most trips, separate travel insurance is needed.
Is the €30,000 minimum enough for Europe?
It meets the Schengen visa rule, but serious treatment can cost more. Many travellers choose higher cover.
Does home insurance cover jewellery?
Often only if declared and within specified limits. Check whether valuables need to be listed separately.
Is home insurance only for owners?
No. Tenants can insure their contents, while the building is insured by the owner.
Our team compares travel and home insurance plans from multiple insurers, helps you choose the right cover and sum insured, and supports you with documentation when you need to claim. You may also want to read about building an emergency fund for costs insurance won't cover. Explore our insurance page or contact us.
Insurance is the subject matter of solicitation. Please read the policy wording carefully before buying.
Key takeaways
- Your Indian health policy usually won't cover treatment abroad — buy travel insurance for overseas trips.
- Schengen visas require at least €30,000 medical cover valid across all member states.
- Buy travel cover when you book, and declare pre-existing conditions.
- Home insurance can cover the structure, contents or both, against fire and allied perils.
- Bharat Griha Raksha is IRDAI's standard home product — check the current wording for limits.
