If you have your own home, you are fortunate. A home is a big dream for many around the world. Owning a home is a proud moment. Everyone works hard and save money to fulfill their dream. It involves a lot of planning, saving and research than only your dreams come true. Besides the money, we are investing a lot of emotions also. A home is not just a home; a home is where the heart is. Purchasing a home is the single largest investment for most of the people but this is not the end of expenses because a lot of home appliances, accessories, decorative items, and all necessary items also come. Since our home is our biggest assets so it is our responsibility to protect our home. All the general insurance company provides home insurance; we should choose the right policy according to our requirements.
What is Home Insurance?
Home Insurance means Home Insurance, there is no other mean of it whether that home is your own or rented. Home Insurance covers everything including the physical structure of the building and the content inside the house against natural and manmade calamities. There is a common misconception that only home-owners should buy a home insurance plan. It is good if a Home Insurance policy purchases by both; homeowners and tenants as both have their interest.
Home insurance is a shield against loss or damage to your property/assets. We called it Property Insurance also which covers losses and damages to an individual’s house and assets in the home. Losses’ reason could be anything like burglary, fire, earthquake or destruction of house due to riots.
In India, Home Insurance is not so popular due to unawareness. Most of the people feel that it is a wastage of money but it is a good idea to take up a little expense to avoid a huge financial setback in the future as the future is full of uncertainty.
Key features of Home Insurance
- There is an option for Home Insurance buyer that either they can purchase an insurance cover only for the structure/building or even for the belongings inside the house.
- Home Insurance policy covers your home and/or its contents against loss from fire, burglary, and natural calamities
- Home Insurance policy also covers for Jewelry, valuables ornaments, works of art, important documents, etc.
- Useful add-ons also available such as a Loss of Rent Cover, Temporary Resettlement Cover, Dog Insurance Cover, etc.
- Coverage term options from 1 day to 5 years
- Easy to apply, easy to buy, easy to modify and fast in settlement
- 100% Mental peace
Types of Home Insurance in India
- Home Structure/Building Insurance: – This type of policy covers the structure of your home from any kind of risk and damages. This policy also protects any permanent fixtures within the house such as your kitchen and bathroom fittings, and also the ceiling/roof of the house. The policy-holder can extend if the policyholder has garages, an outdoor room/house or sheds. This type of cover is good for the building owners, shopkeepers, industrial firms, godown keepers, etc. to ensure the safety of the building. This type of policy can buy for multiple years.
- Household belongings/contents Insurance: – This type of home insurance policy covers the belongings/contents inside the house from damages and losses due to theft, fire, flood and other similar incidents. It could be TV, Refrigerator, furniture, jewelry, clothing, equipment, documents, etc. Buyers can opt this policy separately. The value of household belongings/contents are calculated according to the current market value of these items.
- Comprehensive Home Insurance: – This type of insurance policy can cover both; the structure of the building as well as the contents within the house. The content could be anything whether it is household items or home accessories. However, you will have to declare your household items/belongings at the time of purchasing the policy. This type of policy can be purchased by homeowners and tenants. This type of home insurance policy will provide coverage against fire and allied perils and also burglary, robbery, and theft.
- Public Liability Coverage: – This type of insurance covers the damage of any third party or their property inside the insured’s home then this policy provides coverage against the same. Any legal costs or expenses that one may incur due to this are also covered by this policy.
What is not covered in Home Insurance in India?
- Damages/Losses due to war, civil war, operations, invasion, etc.
- Damage/Loss caused to any electronic equipment due to over-running.
- Destruction of insured property voluntarily.
- Loss of liquid cash, money in the form of antiques and collectibles
It is good for all to take home insurance as uncertainty is there in our life. We cannot stop uncertainty but we can at least minimize our losses if we opt home insurance. Whether you are a tenant or owner, home insurance is always beneficial for us. It gives us peace of mind against a very nominal premium.