Here's Why Every Homeowner Should Have Home Insurance
Owning a house is a cherished dream of almost all Indians. It will be, for most of us, among the most important decisions we will need to make. While most of you will be content with owning a house, have you ever thought about the protection of your home? Getting a home insurance cover for your home might be the last thing on your mind but you can’t deny the fact that it is important to have insurance in case things go wrong. A house insurance policy is the best way to mitigate any financial distress you might face due to damage to your house; this damage can be due to man-made or natural calamities.
What is Home Insurance?
Home insurance is a type of property insurance that covers losses and damages to an individual’s house and to assets in the home. A home insurance policy also provides liability coverage against accidents in the home or on the property. As a homeowner, you can purchase home insurance in India only for the structure of your home or the contents inside or for both.
In case you opt for structure-only coverage, then the insurer will only bear the cost of replacing, reinstating or replacing the building’s structure in case of a calamity. If you go for the cover for the contents and belongings, then the insurance company will bear the costs of damages to household contents, appliances, and electronics.
Why Get a Home Insurance Policy?
The need for home insurance arises for the same reasons you need insurance for yourself or your family; it is dear to you. Any damage to your house could lead to drastic emotional and financial implications. The coverage provided by home insurance will at least take care of the latter. If you are still unsure about getting your house insurance coverage, here are a few more reasons why you should purchase home insurance: -
1. Natural Disasters
Buying a home insurance policy will ensure that your house is protected from all sort of natural disasters or “Acts of Gods,” such as earthquakes, typhoons, cyclones, floods, landslides, etc.
2. Man-Made Risks
Nowadays almost all housing project use latest security gadgets along with the conventional use of security guards to provide the best possible protection from thefts, robberies, etc. but the risks of manmade threats remains very much the same. While not all insurances for homes will provide protection threats like thefts, robberies, terrorism, riots, etc., you can always opt for the add-on from protection from all such threats.
3. You Need Insurance Cover Even if the Property is Rented
Home insurance is not only for homeowners, for example, but you might also be living in a leased apartment that includes house insurance in the lease contract. But the house insurance may not have protection “Acts of God.” Therefore, you will need a home insurance policy to get cover against such natural calamities.
4. All Household Items are Important
Home insurance will usually cover two things- the structure of the house, and the contents within. Most household items have artistic or sentimental value, such as inherited jewelry or artwork. To be sure that what holds value to you is insured, read the policy documents carefully and consider opting for certain add-on benefits.
5. Provides Third Party Cover
This may come as a surprise buy many insurance companies provide cover for the third party that is staying in your home. This cover is in the form of Public Liability benefit. When a guest comes over, there always remains a chance that an unfortunate event may occur. To protect you from legal expenses and compensation that may arise due to damage or bodily injuries to third parties, a home insurance policy is vital.
6. Helps in Case of Temporary Re-Location
Natural disasters can force you to find an alternate place to live while your home is being reconstructed. In such cases, home insurance will help you by covering the additional rent, up to a certain specified amount, which can get you a comfortable place to live while your home is repaired/re-built.
Home insurance is essential if you want to protect your personal property, while those who live in a rented house require insurance cover to protect their furniture and other personal property. Just keep one thing in mind - home insurance will ensure that you won’t be put under financial distress in case of an unfortunate event.
**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**