A Home is a Dream that comes true when we own it. Love for home is almost the same even if you live in a rented house. Home is the place that protects and keeps us secure in all times – be it happy moments or tragic or disastrous. When a home is such an important place, then it requires to be protected in the form of home insurance. It is very essential.
TABLE OF CONTENT
1.Home Insurance
2.Home Insurance is Essential
2.1. Gives Protection to the Structure of the House
2.2. Covers Against Natural / Man-made Disasters
2.3. Coverage of Valuable Assets / Belongings
2.4. Covers damage due to Fire and Theft
2.5. Protection Against Liabilities
2.6. Compensates for temporary Living Expenses
2.7. It is Economical
3.To Sum Up
1.Home Insurance
This is an insurance coverage for the home and its belongings and possessions. Most home insurance policies provide additional coverage that will take care of your accommodation expenses if the house is much damaged by an insured event and not in a condition to live till the repairs are done.
2.Home Insurance is Essential
Home insurance is not given much importance in India though it is very essential. Regardless of the fact that there is a considerable increase in the number of home buyers, people do not pay much attention to insure the house they have bought with a lot of effort and finance. Basically a house is one of the biggest financial investments of life and it has to be safeguarded. People avoid these as they feel it is not essential, till they meet some untoward incident. They also avoid mostly due to high premiums, complex processes while getting back the insurance and lack of sufficient information. Getting back the claim can be a bit complex, that is just to keep away from swindlers.
Here are a few reasons why home insurance is essential.
2.1. Gives Protection to the Structure of the House
A home insurance policy gives financial protection to the house that gets destroyed due to the insured events that may be due to natural calamities or man-made disaster. A basic policy provides the cover for the house in three ways.
- Reinstatement Value : This value includes a value that equals the construction cost of the house. The value of the land on which the house is constructed is not included.
- Agreed Value : This includes both- the value of the land as well as the cost of construction
- Indemnity Value : This is paid as per the market value of the house . It covers the construction cost and the depreciated value as per the age of the building.
2.2. Covers Against Natural / Man-made Disasters
Natural calamities like storms, earthquakes, cyclones etc and man-made disasters like fire, theft, burglary, riots etc. cause a lot of damage not only to life but also to property. A home insurance policy covers these disasters and provides compensation for the loss and damage caused to the insured home due to such causes.
2.3. Coverage of Valuable Assets / Belongings
Apart from covering the house from natural and man-made disasters, home insurance companies have policies to cover against loss /damage of contents that are inside the house. These include valuables, expensive and important belongings, documents, jewellery, clothing, appliances, furniture and much more.
The policy covers valuables and contents of the house. Under home insurance, the contents of the home like appliances, furniture, clothes, gadgets, valuables etc. are covered.
2.4. Covers damage due to Fire and Theft
In case of a theft, the policy will compensate for the stolen contents. In case of loss caused by fire, the insurance not only covers the cost of construction of the damaged part, but also offers add-ons – like financial support to temporary accommodation till the severely damaged part is repaired. If there is an unpleasant burglary or theft in the insured house causing damage to the contents in the house, then the policy will cover for the equivalent.
2.5. Protection Against Liabilities
If there is a physical or property loss to a third person at your insured house, then the policy covers this loss under the public liability coverage. Accidents can be a cylinder blast or a repair activity that might have caused some loss to your neighbour’s property. A home is a place where many of our friends and relatives visit us. Unfortunately if any of the third party encounters any loss, either to them or to their property within the insured house, then home insurance will cover up that loss.
House insurance policies offer liability coverage which covers one against personal injuries, property damage to guests and other third party which might have incurred while residing in the insured house. This coverage protects you and your house from any possible legal issues.
2.6. Compensates for temporary Living Expenses
If the insured home is severely damaged and is not in a condition to live, then one has to move in a rented accommodation. This rent will be paid by the insurance policy giving you little financial relief. This relief will be available till your home is repaired.
2.7. It is Economical
Though most of us consider it an unwanted expense, the benefits offered by the policy are much more than what money can buy. Payment is less as compared to the benefits offered. Getting the house insured at nominal rates is a fair deal. One should know that home insurance is essential
4.To Sum Up
Natural disasters like floods, earthquakes, cyclones cause extensive damage to life and property. Even man-made incidents like theft, burglary, riots or fire also damage the property as well as the belongings and valuables that are in the house. A home insurance policy will compensate for the loss that is caused due to either of the reasons. The value of a home insurance is truly appreciated when a mishap strikes the house but that would be too late to repent. It is always better to safeguard our shelter from any loss faced due to natural disasters or man-made events.
An extensive home insurance policy has extra benefits. This policy not only protects the building but also covers all the components related to the house like the garage, shed or fence of the house. Additionally some more add-ons can be opted to protect the other contents of the house like furniture, electronics and valuable home appliances. Hence, we can say that Home Insurance is Essential to safeguard our house.
Written by Nikhil Gattu
