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Wednesday, 6 July 2022

Basics of Home Insurance, its Cover,Importance and its Advantages

  Basics of a Home Insurance, its Cover,Importance and its Advantages


Let’s start this direct by asking you a question – which is the most valuable material asset that you own? The answer for most of us is our – houses. Our houses not only gives us with a place to stay, but it is our most expensive asset – ranging from a few lakhs of rupees to even a few crores.

Yet, the most of homeowners fail to insure their homes. It’s common for personals to insure their cars (as it is mandatory) but skip insuring their homes. This is because most people do not consider their houses  as subject to risks.

Contrary to famous perceptions, homes all over the nation are at risk. The number of a fire accidents, burglaries, thefts, recorded every year run from a few thousand to lakhs. Moreover , recently, we have seen natural calamities taking a toll on lives and property in different parts of India. Floods, cyclones, and also earthquakes – there are plenty of things that could go wrong with your house.

National records describe that nearly 48 lakh Indians suffer from natural disasters every year, that reason damage to properties over Rs. 64,000 crores. Much of North and West India are prone to earthquakes, placing over 200 million people at risk around 100 cities.

This is where – house  insurance comes into play. Home insurance is an insurance policy that saves you from financial ruin when you lose the biggest asset of your life in a natural or man-made disaster. Here, in this lead , we explain all about home insurance – what it is, kinds , why you require one, how to select the right home insurance policy, FAQs and more.

What is Home Insurance?

Home is where the heart is, and a home insurance policy supports you protect it.

Home insurance is known by many names – house insurance, property insurance, building insurance, or homeowners insurance. This is an insurance policy that helps to save your home from damage because of  insured events (defined events) mentioned in your policy document. Some of the common insured events contain fire, floods, storms, earthquakes, etc.

If your home gets damaged because of  a calamity mentioned in the policy document, then the insurance company will give you with a lump-sum amount to cover the cost of repairing or replacing the damages in your house.

Moreover , the home insurance policy even protects you from legal liabilities if a visitor gets injured while visiting your home.


Who should buy home insurance?

There is a common myth that home insurance is only for a  homeowners. Contrary to that, home insurance policies are meant for all – irrespective of whether you own a home or live in a rented house.

Let us explain the cause for this using an example. Consider the case of Rakesh, who moved into a rented high-rise apartment in Gurgaon, just a some months ago. He furnished his home with many high-end appliances and spent a few lakhs on the interiors. A some weeks ago, his apartment building was engulfed in a fire accident, making all inmates lose their appliances and other materials inside the home.

Thankfully, Rakesh had taken a house  insurance policy for his rented apartment. As per to the plan, the insurer reimbursed the costs of all damaged appliances, furnishings and interiors. Rakesh was able to relocate his family to another apartment building and furnish the new place with the compensation rupees . Thus, his home insurance policy saved him from financial stresses while the emergency.

As you can watch , home insurance offers protection and peace of mind to both landlords and tenants. Hence, home insurance is an absolute must for everyone.

Top 5 Advantages of Purchasing Home Insurance

There is no denying the fact that home insurance offers significant financial protection to every homeowners. Here are the top 5 advantages that you can enjoy when you purchase home insurance:

  • Comprehensive coverage to your possessions inside the home also  the structure of the property.
  • Protect your most expensive asset – your home – from all-natural and man-made calamities.
  • The premium of a house  insurance policy is lower when compared to other insurance plans.
  • Timely payouts of the compensation and large sum assured, supports  you and your family, relocate or repair and rebuild your home quickly, after a calamity. This supports you obtain back to your daily lives after an emergency.
  • Above all, it gives you boundless peace of mind. You can decrease  your tension and stress, knowing that your home is saved at all times.

Types of Home Insurance Policies in India

1. Standard Fire and Specials Perils Policy

2. House Structure Insurance

3. General Liability Coverage

4. Individual Accident

5. stole and Burglary Insurance

6. Material Insurance

7. Tenants Insurance

8. Landowner’s Insurance

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