Saturday, May 18

8 Benefits Of Having A Home Insurance Policy In India

Home is the most precious asset you own. It not only gives you a sense of security from the harsh weather but also protects your assets. In recent times, the environmental changes and increasing cases of vandalism have raised the need for an extra layer of protection. Any damage to the structure of the house or the personal belongings will result in monetary losses. Home insurance plans can provide the much needed extra layer of security to the homeowners in such cases.

These insurance policies provide a sense of relief to the homeowners as they cover an array of natural and man-made calamities. The home insurance plans attract a low premium, thus stay in an affordable range for every household. The premium depends mostly on the structure and the market price of the personal belongings. But to understand why you need a Home Insurance Policy in India, you should know the benefits associated with it. Here are the top 8 benefits of having a home insurance policy in India.

  1. Reconstruction cost: In case there is any structural damage to the house or property by natural or man-made reasons, the insurance policy will cover the cost. Please note that such coverage includes the structures outside the home but on your premises as well such as backyard, garage and more. The reconstruction or repair cost will include not only the walls but the electrical fittings and plumbing as well.
  2. Protection of the personal belongings: There are a lot of things that you buy for your home ranging from gadgets, appliances, furniture and more. In case of fire or an earthquake, these personal belongings can face severe damage. Home insurance policies provide financial assistance for the repair or replacement of such damaged personal belongings. Please note that you have to pay the insurance premium only once a year. During that period if you have invested in any new appliance, gadget or furniture, it is always better to inform the insurance policy. Some plans allow adding items during the year by paying a small fee; otherwise, you can get the premium revised at the time of renewal.
  3. Cover for theft, vandalism and riots: No matter how secure you make your house, there is always a chance of theft, destruction or damage due to riots. In such cases, the home insurance policy will cover the valuables stolen or damaged. Please note that to file a claim you must declare the valuables at the time of buying the insurance policy.
  4. Cover for jewelry: For every household, the most precious asset is the jewelry. Home insurance policies do cover any damage to jewelry, but there are two conditions. First, cover for the jewelry comes as a rider in most of the home insurance plans, thus based on how much jewelry you own, there will be an additional cost to the premium. Secondly, you have to declare the jewelry while buying the insurance policy if you want to cover. If the jewelry is old and you do not have the receipts, it is better to get the valuation from an authorized jeweler to get the cover.
  5. Cover for alternative accommodation: In case you have to shift to an alternative accommodation due to damage caused by natural or man-made calamity to your home, the home insurance policy will cover the cost. Please note that in most of the plans such cover comes as a rider and you have to opt for it separately.
  6. Protection for third party liability: It is one of the most important aspects of the home insurance plan. It covers any legal or monetary third party liability as well. For example, if you are hosting a house party, and one of your guests falls and break his leg or arm, the home insurance policy will provide financial assistance for the medical expenses. Also, in case there is damage to third party property because of your home or anything on your premises, the home insurance will cover the damage. For example, if a tree that is on your premises falls on someone else’s home and damages a wall, the home insurance policy will cover the cost of the repair.
  7. Low premium for maximum cover: There is a misconception that home insurance policies are expensive that is not true. The premium that you have to pay varies from person to person depending on the requirements. Most of the plans fall in the affordable range, and the benefits are much more in comparison to the cost you pay.
  8. Easier to secure home loans: It is one of the lesser-known benefits of the home insurance policies that they help in obtaining house loan from the banks. Many banks and financial institutes prefer that you have a home insurance policy and consider it as one of the important eligibility criteria.

Protect your home always

Home is the most important investment that you make in your life. If anything happens to the structure or the personal belongings, it may result in hefty monetary loss. Though the mental trauma can only heal with time, if you have a home insurance policy, it will save you from significant financial liability. In today’s time when the climate change, environmental shifts, and man-made calamities are on the rise, it is better to have an extra layer of security for your home and personal belongings in the form of a home insurance plan.