To realize the value of house insurance/home insurance, it is important to understand what house insurance is. Home insurance is a unique type of property insurance that covers your house from different kinds of dangers like accidents, perils damages and thefts. You can choose to buy home insurance plan for a stipulated tenure, and it will be effective only for that tenure. So, it is safe to assume that home insurance is also a type of term contract. Once the stipulated period is over, you can renew the insurance policy. To make sure that you get coverage under a comprehensive home insurance policy, you need to pay premium to the insurance company. Every leading insurance company in India offers comprehensive home insurance policies. As a customer you can make use of any third party financial website to compare home insurance policies offered by the different companies, and choose one of them according to your requirements.
Your house is undoubtedly the costliest asset, and the most treasured for you. Any catastrophic devastation caused due to earthquakes and other natural calamities can shake the entire structure of your house. The consequence of the same is likely to be that your house becomes completely unlivable. It is only to protect you and your house from such unforeseen circumstances that a house insurance becomes crucial, for house owners and tenants alike. In case your house gets damaged, the emotional and financial pain of rebuilding a house or reinstalling its contents is painful, difficult and tedious. A comprehensive home insurance policy spares you the horror of the same.
Apart from the aforementioned factors, there are other benefits of having a home insurance which have been explored through this article. Leading insurance companies offer a wide array of innovative features and benefits under different home Insurance plans, such as extra coverage, additional discounts, customized options to choose from, and such like. Usually, insurance companies charge less premium if the insured home is equipped with fire extinguishers, installed with security system, etc. This not only ensures protection for residence, but also provides protection for domestic appliances, electronic appliances, property, and family members against various dangers.
Insurance companies provide different plans under house insurance such as landlords’ insurance, tenants’ insurance, content insurance, buildings insurance, etc. A standard house insurance plan also covers for loss and damage caused to your property due to a fire accident, theft, allied perils, and burglary. Some house insurance policies charge and an additional premium for coverage caused due to natural calamities like earthquakes or floods. The primary reasons for having a house insurance policy have been listed below.
Protection against liabilities – House insurance policies provide liability coverage which covers you against personal injuries, property damage to guests and other third parties which they might have incurred while residing in the insured house. There could also be loss and damage caused to third parties for which you or your family members (residing in the insured house) may be legally responsible. This coverage is extremely important as it provides protection to you and your house from any possible legal problems.
Provides coverage against natural and man-made calamities – A comprehensive home insurance policy covers your house against losses and damages caused due to natural calamities, such as earthquakes, floods, lightning, storms, typhoons, etc. The policy also covers your house from man-made hazards and anti-social activities, alike. These are acts such as vandalism, thefts, strikes, riots, other activities caused out of malicious intent, etc. It also enables you to financially recover from the loss and rebuild your home.
Coverage of temporary living expenses - Say your insured house has undergone some damage and is uninhabitable until you rebuild/renovate it. During the rebuilding/ renovation process, if you rent out another house and apartment to stay there until your own house gets back to a livable condition, the insurance company will cover your expenses incurred for paying rent. The upper cap for this amount is set according to the policy wordings provided by the insurer.
Coverage for the loss/damage to your valuable assets and precious personal belongings – Apart from covering the structure of your house, house insurance companies also offer policies to provide coverage against loss/ damage of articles/contents kept inside the insured house. These include various valuable, expensive, and important belongings. These include documents, personal belongings including jewelry, clothing, appliances, furniture, and much more.
Makes it easier to avail a house loan from banks – Some banks give preference to those customers (for sanctioning a home loan to them) who have the home insured. For certain financiers, home insurance is, in fact, one of the major eligibility criteria for availing a home loan.
So put your foresight to good use and be prudent. Insure your home against every kind of natural and man-made calamities today to assure yourself and your family of a secured future.