Home Insurance- The Only Way to Secure Your House against Calamities

Home fire, short circuit, robbery, earthquake etc. are hazards that do not give a warning before striking. And except for the loss of life, the most devastating thing that they cause is loss of property, furniture and all your belongings. Sometimes it does not even matter whether it is a new home or an old one- a lose wire; a leaked gas pipe is enough to destroy your belongings.

So what to do if you face such a hazardous situation? Home Insurance is your only answer.

Importance of home insurance policy

Ankur and Rajni Shahi is a couple who had undergone a similar experience. When they moved into a new flat in Mumbai, an electrical short circuit in their home caused fire, destroying appliances and furniture worth Rs. 7.5 Lac. It was their home insurance that helped them cover their losses.

Though this trend of getting insurance cover is not so popular among the general masses in India, it is slowly gaining momentum. The importance of such a cover lies in the fact that natural calamities and other disasters can perish many homes. It is not always your call.

It is also surprising to notice that the premium for insurance amount, against the gigantic value invested in purchasing properties and quite a fraction of the value in furnishing them, is very small. Yet insurance premium in the fire and allied perils segment of the general insurance industry has registered a slow growth of 8 percent, if considered from a year on year increase.

 

Mother Nature- The Salesperson Of House Insurance

 

Even in slow growth of this insurance premium, the graph is anything but smooth. This is because Mother Nature plays an important role in selling insurance. Just after the earthquake in Gujarat, the count of home insurance increased steadily and rapidly- as an aftermath. But when such a thing is not happening then people are rarely bothered to pay, even a few thousand bucks as the coverage.

Covered objects in House Insurance

It is really unfortunate that people do not realize the importance of home insurance. The vital that covers the most essential things cost you less than Rs. 2000 per year. The cost of insuring the structure against damage is as low as Rs. 50 for Rs. 1 Lac. Also you do not get the price as per the rate of the property, but only the cost of reconstructing it.

 

Home insurance in India is anything but expensive. The costs vary from Rs. 1500/ sq.ft. for no frills structure to 2500/sq.ft. for premium construction. Therefore, a 2000 square feet house would be provided a cover of Rs. 30 to 40 Lac.

 

What to insure additionally?

A fire or flood may not bring down your building, but it can surely destroy everything inside the house. Insuring the damage done to internal content of your home/ office is another aspect you should consider. In the given image you would get a detailed analysis of the expenditure against the amount and object covered within a property. Because fire or flood may not be also that frequent, but you can always expect mishaps like robbery and breaking in.

Getting a standard fire and other perils policy coverage will help you with the expenditure in case of fire, storm, flood, landslide, lightning, earthquake, rioting, arson, vehicle impact, and pipes and tanks bursting. And what more, insurance companies offer them as a comprehensive plan and also as standalone plans. It is always better to include attendant risks in a cover. There are still a number of damages to your property that the insurance will not cover.

Insurance for rental properties

Some people think that living in rental properties does not need insurance coverage since the property belongs to the land owner and not to a renter. However, you should understand that it is not the landowner’s furniture/ electrical appliances that is harboring within your residence, but your own. Exceptional cases like fully furnished homes and studio apartments is another thing altogether.

 

But in bare-shell/ semi-furnished apartments you will have to purchase your own furniture. And you need to insure your belongings to maintain their safety and security- lifelong.

 

Conclusion

It is essential that you visit every year when the time to renew policy arrives. Certain stuff gets discarded, some new things are brought into play- the company should add these things to your list and inform you about the additional premium.

It is advisable to photograph more valuable objects in your list as evidence so that you do not face problems during the time of claim. You also need to submit a valuation certificate in case of insuring jewelry.

[Source: http://www.roofontop.com/news-community/articles/home-insurance-the-only-way-to-secure-your-house-against-calamities/]