The Home Appliance Insurance policy offers protection against the risk of loss or damage to domestic appliances due to electrical or mechanical breakdown. Electrical and mechanical appliances, which are distinctly different from electronic items, come under the purview of home appliance insurance.

The domestic appliances insurance policy can be taken as an individual policy or as a part of Householder's Package Policy. The amount of claim payable would be limited to the sum insured or market value at the time of loss whichever is lower. Applicants are required to submit the completed proposal form furnishing full particulars of each appliance for easy identification like manufacturers serial No, Frame No, Batch No and/or Model No.

The cost of home appliance insurance policy is payable by way of a monthly premium charged on the replacement value of the appliance. equipment operated with electrical power may suffer breakdown due to overloading, excessive pressure or voltage fluctuations. Generally, warranty covers only manufacturing defects. This policy provides for losses due to such electrical and mechanical breakdowns.