Buying a home is a big step, so keeping it safe should be a priority. A good home insurance policy can help you manage the financial impact of events like fires, burglaries or natural calamities. The kind of protection you need depends on your living situation and what you want to insure. Taking the time to understand the different types of home insurance available can help you avoid surprises later, so let’s learn about it.
The basics of a home insurance policy
Home insurance helps protect against financial losses caused by events like fire, floods, riots, theft or other unforeseen incidents. Coverage typically falls into three categories. Building or structural cover insures the physical structure, including walls, floors and roof. Contents cover household items such as electronics, furniture, jewellery and personal belongings. Additional options may include public liability, loss of rent or alternative accommodation if the home becomes uninhabitable.
Different types of home insurance policies
The primary types of home insurance coverage are:
- Structural cover: This is one of the most common types of home insurance and is meant for homeowners. It covers the physical structure of the house if it gets damaged as a result of natural disasters, fire, civil disturbances or accidents.
- Home content cover: Home content cover is designed to protect everything inside your home, including furniture, household appliances, clothes, electronics and even valuables like jewellery. This cover is useful if you have expensive or essential items you don’t want to lose, regardless of whether you own or rent your house. However, the policy typically requires you to be the legal owner of the items being insured.
- Fire cover: Fire cover offers protection against damages caused by fire-related incidents. This includes fires resulting from accidents, natural calamities, electrical faults or even riots and explosions. You can choose to insure the building, the contents or both under fire cover.
- Public liability cover: Public liability insurance covers any legal or medical costs that may come up in case any individual gets injured or their property gets damaged while on your premises. It is particularly useful for homeowners who often host visitors, run home-based businesses or have domestic help coming in regularly.
- Theft cover: Theft cover helps you recover losses if your belongings are stolen or damaged during a burglary or attempted theft. Items covered can include electronics, jewellery, cash, personal documents or even business equipment if kept at home.
- Landlord’s cover: If you rent out your property, landlord’s insurance helps protect the structure as well as any furniture or appliances that belong to you but are used by the tenants. This cover makes sure that you don’t suffer losses due to tenant negligence, accidental damage or issues that make the property temporarily unfit to rent.
- Tenant’s cover: Tenant’s cover is for individuals who rent a property and seek to protect their personal belongings within the home. Since the tenant doesn’t own the structure, this policy focuses only on the contents. This type of insurance is ideal for those living in furnished or semi-furnished homes, especially if you own expensive electronics, appliances or personal valuables.
How to choose from the various home insurance policy types
Choosing the right type of home insurance depends on your specific needs, how the property is used and the risks involved. Begin by identifying whether you require coverage for the structure, the contents or both. Your role, whether you're a homeowner, tenant or landlord, plays an important part in determining the right coverage.
It's also essential to consider local risks such as floods, fire or theft and select a policy that protects them. If you own high-value items, make sure they are properly declared and covered under contents insurance. Adding public liability cover is a smart choice if you frequently have guests, employ domestic help or operate a home-based business.
For rental properties, landlords should opt for structure and rental income protection, while tenants can go for contents-only insurance.
Conclusion
Many standard policies include coverage against fire, theft and natural disasters. However, they may not automatically cover events like water seepage, short circuits or loss of rent. These often require add-ons. Similarly, different homeowners insurance can vary in how claims are settled. Some offer reinstatement value, while others follow market value after depreciation.
FAQs
- What are the main types of home insurance available?
Common types of home insurance include structural cover, contents cover, fire and theft protection and specialised plans for landlords or tenants.
- How do the types of homeowners insurance differ?
Types of homeowners insurance vary by coverage. Some protect just the building, others include belongings, liability or both.
- What should I know about homeowner insurance policy types?
Homeowner insurance policy types offer different coverage options, from basic structure-only plans to full protection with add-ons like liability and rent loss.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.