How can home insurance be beneficial?

In the recent age, the instances of natural disasters have been growing exponentially. These calamities range from earthquakes, floods to cyclones, droughts, and landslides. These natural calamities are absolutely devastating for people. After all, everything they own is wiped out by nature in the matter of a few hours. Even though these catastrophes can be considered as the wrath of nature and there is hardly anything we can do to prevent them. Home insurance offers a viable solution. Therefore, as aftermaths to these events, a majority of the people are opting for insurance as to tool that provides protection against the ‘act of god’.

The worrying part however is the low penetration and awareness of the home insurance product. Therefore, let us understand the different home insurance benefits:

1.       Coverage of structure: Structure translates to walls, doors, and windows in the house.  In case any of these are destroyed or damaged due to a natural calamity, burglary, theft, etc. then the insurance company is liable to pay the insured person.

2.       Coverage of contents: Damage or loss of the house owner’s possessions in the house such as Furniture, clothes, carpets, curtains etc.

3.       Coverage of valuables: Against popular belief, all the valuables in a person’s house such as electronic equipment ( i.e. TV, Laptop, Washing machine etc)and jewellery can also be covered under house insurance. There is also a separate policy that covers only contents called as Content insurance.

4.       Personal accident coverage: Most home insurance policies provide the home owner ample protection against accidental death or disability.

How is home insurance beneficial to people?

1.       Tenants: Since a majority of the population live on rent, people are apprehensive about purchasing home insurance. However, with this renewed knowledge they can opt for covering everything in their house except the structure. 

2.       Landlords: Home owners can safeguard their rented apartments by covering only the structure of their house. This reduces the premium amount and gives them apt protection for their property.

3.       Society members: Society members are often oblivious to property insurance as their society or complex is insured. However, they are ignorant to the fact that only the society structure is covered under the society’s policy. Their personal belongings are not covered and they are highly vulnerable to an unforeseen event. Therefore, even when a person’s society is insured, it is highly recommended to go for property insurance.

How much would a home insurance policy cost?

With regards to apartments and flats, the home insurance premium amount is decided on the basis of a particular rate that is fixed by the government of India and it depends on the area of the property. This rate is updated by the government annually. However, in case you have done a lot of renovation in your house and used expensive material, you can always get a valuation done independently. Another option is to opt for an over-the-counter policy that provides a generic coverage and sum insured without any inspection. Be informed that it is always suggested to get a valuation done as you would get personalized coverage.

Final thoughts

Considering recent events such as the Nepal earthquake it has become imperative to safeguard ones property against unforeseen events to live life confidently. In addition, with the recent technological advances, it has become extremely easy to buy a policy online at the comfort of your house. If you add both these points together you would understand the importance of home insurance and the ease to opt for it.