As we all know “Home is where our heart is”, it is a very natural human feeling to desire the best possible things for your house. However, life is very unpredictable, and unforeseen risks may arise at times. Well, if you are worried about how to overcome these hazards, this blog is the right read for you.
What is home insurance?
Natural disasters such as the Uttarakhand flood, the Amphan cyclone, and the Gujarat earthquake have struck without warning, thus causing irreversible damage to residences around India. Even living in a non-natural disaster-prone area can expose your home to unforeseen risks such as defective wiring and kitchen fires. Therefore, it is critical to have a home insurance policy at hand.
Home insurance, also popularly known as property insurance, safeguards your home from natural calamities and man-made perils.
To put it in simple words, home insurance is a contract between a residential property owner and a home insurance provider, where the latter protects against potential loss or damage due to unforeseen circumstances. These house insurance companies not only offer risk coverage for damage to your home but also assist you with legal processes and responsibilities related to it.
What are the benefits of home insurance?
- Protecting the Structure of Your Home: If your home is damaged by a fire, cyclone, rain, or other comparable calamity, your home insurance company will reimburse you for rebuilding or restoring your home.
- Protection for Personal Goods: Home insurance provides coverage for personal goods such as furniture, electrical devices, and technological gadgets in case of theft, fire, or natural disasters.
- Third-Party Liability Protection: Your house insurance coverage covers you if you cause harm, loss, or damage to someone else’s property. Though the amount covered varies depending on your policy, house insurance will also assist you with legal bills in the event of a court appearance.
- Living Cost Coverage: If your house is destroyed by an environmental or man-made disaster, your insurance will pay additional living costs. For example, you may move to a lodge or a hotel until your house is restored.
What are the different types of Home insurance available in India?
1. Contents Insurance: This insures not only the property but also the items within it, on which you have spent a significant amount of time and money. This form of home insurance coverage protects your belongings against theft, fire, floods, and other disasters. Your documents, portable devices, jewellery, television, refrigerator, and other belongings are all covered. It comes in handy when you have to rebuild the interiors of your home after it has been flooded or burned down by a fire.
2. Tenants Insurance: As a tenant, you would have undoubtedly rented an apartment or condominium. In that instance, it is best to avoid a building cover and concentrate solely on securing your possessions. Every tenant must have this form of insurance. Though you live on a leased property, it is very much yours, at least for the time you dwell there.
3. Landlord insurance: As a landlord, you are responsible for the care and repair of the building/apartment/structure of the rental property. A normal building insurance policy is often not created only for the needs of landlords; as other occupants live in the property. You need something created exclusively for landlords. As a result, landlord insurance coverage is appropriate for you, as it covers things like rent loss and public liability.
4. Building/Structure Insurance: This sort of home insurance protects your home’s structure from a variety of hazards. The coverage also covers any permanent fixtures in the residence. This covers the kitchen and bathroom fixtures, as well as the insured home’s ceiling/roof. Some homes have garages, outside rooms/houses, or sheds. These constructions are often covered by this sort of insurance.
5. Standard Fire and Special Perils Policy: As the name implies, the policy is offered by every major insurance company and offers coverage against specific risks including fire outbreaks. This coverage is available to both homeowners (for their own homes) and renters who live in rental homes. The total covered by this insurance is determined as Building – Cost of Reconstruction (excluding land value). Standard Fire and Special Perils insurance protects the insured residence from loss or damage caused by the following causes:
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- Natural disasters include lightning, fire, volcanic eruptions, bushfires and forest fires, earthquakes, storms, and floods.
- The harm caused by explosions and implosion, man-made anti-social actions such as protests and unrest,
- Damage produced by direct contact between the rail, road, and vehicle. (However, the damage caused by the insured dwelling with your car is not covered by this policy.)
- Destruction caused by the breaking or spilling of water tanks and pipes.
- Disruption caused by leaks from automated sprinkler installations.
- Missile test activities.
- Subsidence includes rockslides and landslides.
6. Public liability coverage: If any visitors or third parties are injured or have their property damaged while inside the insured’s house, this sort of home insurance policy will cover it.
7. Personal Accident: Home insurance for you and your family. Compensation is provided if the insured individual is permanently disabled or dies as a result of an accidental or bodily injury, regardless of where it occurred in the globe.
8. Burglary and Theft Coverage: The coverage covers valuable belongings stolen or damaged during a burglary or theft in the covered home.
What isn’t covered?
The following things are not covered by a health insurance policy:
- Willfully destroying property.
- Wear and tear on property can cause damage.
- Wartime property losses.
- Loss of property that has been vacant for more than a given period.
- Money in the form of cash, antiques, or collectables.
Finally, house insurance is an important safeguard against unanticipated calamities and losses, providing coverage for your home’s structure, personal items, and legal obligations. Whether you own a house, rent, or lease, bespoke insurance such as Contents Insurance, Tenants Insurance, and Landlord Insurance meet your specific needs. With advantages that include financial security, living expense coverage, and personal well-being, house insurance is more than simply a precaution; it’s a wise requirement for protecting your home and its treasured possessions. Don’t delay: safeguard your house and your peace of mind