New Delhi, April 28 -- Some years ago, my aunt's flat in Delhi was gutted in a fire. She assumed the Resident Welfare Association (RWA)'s building insurance would take care of things. It did not.

She struggled to obtain a copy of the policy and, when she did, discovered the coverage was far narrower than expected. It covered only the outer building structure. Her interiors-modular kitchen, flooring, fittings-were not covered.

Then there was underinsurance. The building was insured well below its actual replacement cost. So even the structural claim would have been settled at a fraction of the real loss. The RWA was focused on its own losses; her personal loss was not their priority.

Her experience is not unusual.

Most apartment owners...