Home insurance protects homeowners from various risks that can cause partial or complete damage to the house. It covers you from financial losses arising out of unfortunate events like fire, burglary, natural calamities (flood, earthquake, etc.), terrorism, other accidents and liabilities (like rent expenses for temporary housing).
Make a wise choice
One can choose a home insurance cover after considering the location and specific requirement. For example, if you reside in an area that is prone to earthquakes or riots, you can opt for a comprehensive home insurance cover accordingly. You can opt for a basic policy or choose to strengthen it with specific add-ons that cover loss due to terrorist activities and help you manage additional rent expenses for alternate accommodation.
Types
Home insurance can be of two types, Structure and Content Insurance. Structure Insurance pertains to the physical structure (building) of the house while Content Insurance deals with the contents within the house (assets and belongings). While tenants can opt for Content Insurance, homeowners can opt for both Structure as well as Content Insurance.
Reasons for Buying Home Insurance
- A house is usually the most costly and valuable asset that you own and it takes a lifetime to own it.
- Usually, the premium is very less compared to the value of the home. To invest a small amount in insuring your home is being financially prudent.
- Wherever you go and whatever you do, you always want to return to the comfort and safety of your home. You cherish the beautiful memories attached with your home.
- Even if there is minimal probability of any damage, it is wiser to take cover rather than repent later.
- Sometimes, home loan lenders also insist that the homeowner should buy insurance.
Right Time to Buy
More than half of India's land territory is prone to earthquakes - the single most devastating event for home damages. People ponder over covering their risks when they hear about a natural calamity but forget to act on it.
Availing home insurance at the earliest can ensure safety and protection from day one. Also, if your house is close to 30 years old, do not delay, as insurance companies might not cover homes that old.
Make an informed choice
Along with knowing what is covered, it is important to understand what the policy does not cover (exclusions). No cover is available for damage due to willful destruction, war and normal wear and tear. Jewelry, bullion, artwork, financial documents and cash are generally not covered extensively under a standard policy. If the property is vacant for a specified period without prior information to the insurer, then that risk is not covered.
Go Online
You can also purchase home insurance online. Insurance companies provide complete transparency by providing detailed information about their products online. Detailed policy wordings can also be accessed on their website. Policies can be compared as per your requirements and purchased instantly.
You spend astronomical amount of money to buy your dream home and flaunt it with pride. Investing a small amount in protecting that dream is worthwhile.
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