You must have insured your life by buying a term plan or other life insurance plans that ensure financial protection of your family in your absence. You must have also bought health insurance to stay prepared against medical emergencies. So, you have got yourself covered against life and health related uncertainties. But, have you ever given a thought that your home also needs protection against natural calamities, damages and thefts.
Home Insurance is a Necessity
Buying/ building your own house requires a lot of research and huge investments. It is one of the most costly assets and you always want to keep it safe.Any calamities such as earthquakes, floods etc. can ruin the entire structure of your house.It is thus extremely essential to keep your home protected against all types of disasters.
Here comes the role of Home Insurance. A home insurance policy covers your home and/or its contents against the risk of losses or damages caused due to any unforeseen events.Any damage to your home will lead to a major financial setback, so it’s vital to insure your home.
Let’s go through some key points that will help you to understand the need of home insurance.
- Cover Against Natural Calamities
As per a UN report, India suffered losses of $80 billion from year 1998 to 2017. The key drivers of economic loss were tropical cyclones and floods. You can’t control natural calamities, but with the help of home insurance you can protect your house against disasters such as earthquakes, floods,landslides and cyclones.
- Protection from Man Made Risks
Despite installing latest safety gadgets, man-made threats such as robberies, burglaries, thefts, riots and terrorism are still the major threats to your house. You may ask the insurer to cover your house against these man-made risks, under a home insurance policy.
- Secure your Home & its Contents
By getting Home Insurance, you can protect your home from both natural calamities and man-made threats. A home insurance policy also provides cover for your personal possessions that are kept inside your house such as household appliances,jewelry, audio and video appliances, paintings and other valuables. Buying a home insurance plan ensures the complete coverage of your home and its contents.
- Third Party Liability Coverage
An unfortunate event may occur when a third party stays in your home and any loss/ damage that occur to them will raise a third-party liability. Some insurers offer coverage against such legal liability. You may check with the insurer and get coverage for this legal liability with the home insurance policy.
- Peace of Mind
Any loss or damage incurred to your home or its content will be disastrous. To get covered against perils, you need to purchase a home insurance policy and attain an assured peace of mind.
Tips to buy a Home Insurance Policy
- Choose Right Sum Insured: When looking to insure your home, you firstly need to assess the cover amount properly to ensure your property is not under-insured, else you may have to suffer financial burden in case of any causality.
- Read Fine Print: Before buying the policy, it is essential to go through the terms and conditions applicable. You should read the policy exclusions before purchasing it.
- Get Required Add-on Covers: Additional (add-ons) coverage is available at an extra premium, so you should assess the add-ons properly and enhance cover for your home. Choosing the right add-on will help you stay prepared against the specific contingencies.
- Opt a Longer Cover: By choosing a longer policy tenure of 5 to 10 years, the insurer will offer the premium discounts that minimize the cost of the cover.
Compare before buying: Prior to buying home insurance, it’s wise to compare the benefits and coverage available with different insurers. By comparing, you can easily get the right policy as per your home insurance needs.
By: Mr.Subhash Nagpal,CEO and Founder at Compare Policy