What is home insurance?
When it comes to general insurance, the typical types of insurance that are well known are Medical Insurance, Travel Insurance, Motor Car, and Two-Wheeler Insurance. But as home-owners, there is another important type of insurance that should be considered: Home Insurance.
If you’re wondering what Home Insurance is all about, then you’re not the only one. Knowledge about this type of insurance among home owners in India is dreadfully low. Given the number of items and losses covered in a Home Insurance policy, it is time this policy sees more acceptance.
What is Home Insurance?
Home Insurance is a term for an umbrella of losses that may occur to a home. These losses include:
- Fire and perils:
This covers losses caused by:
- Aircraft damage
- Lightning and rain
- Storms, cyclones, floods, hurricanes
- Missile testing
This provides coverage in case of an earthquake.
- Burglary and theft:
This covers any losses due to burglary and theft to any property in the house.
There is a basic House Insurance and a comprehensive package that covers different types of losses. This particular policy can be purchased by a tenant or even a co-operative hosing society for a period of 1 year.
How much does a Home Insurance policy cost?
A Home Insurance policy typically costs between Rs. 2000 to Rs. 5000 depending upon the risks covered, and the value of the house insured.
One important point to remember about Home Insurance is that it covers the value of the house, but it does not cover the value of the land. This is why experts recommend that a Home Insurance should be purchased by housing societies as a whole so that the benefits can be extended to the entire society in case of loss due to natural disasters.
Another important point to consider is the strength of the building and quality of construction. Home Insurance does not cover against poor construction. If the building itself is of poor-quality construction, then getting Home Insurance won’t cover the damage on this account. Home Insurance also does not compensate against unauthorised constructions. Before buying a house, it is best to check whether all permissions are in place.
It is possible to get Home Insurance for a period of 1 to 5 years, depending on the insurer.
Buying Home Insurance is a very important requirement for a home owner. Having insurance is especially important if the home is situated in an area which is prone to natural disasters.
We tend to insure ourselves exhaustively. Let us also invest in insuring the roof above our heads.
You can read more on how Home Insurance works.
Looking to apply for Home Insurance? Click here to get started!
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.