Top Reasons to Consider a Home Insurance Policy

Buying a home is one of the most crucial investments that you will make in your life. It is a valuable asset that serves as a sense of security and protection. However, owning a home comes with a great deal of responsibility, including the need to protect it from various risks. This is where a home insurance policy comes in handy. In this article, we’ll explore the top reasons why you should consider investing in a home insurance policy.

What is the Importance of Buying Home Insurance Policy?

Most homeowners refrain from buying home insurance because they see it as an additional expense. Even when the milestone of buying the dream home is achieved, we start dreading the process of applying for a home insurance policy.

To ensure maximum financial protection, you must understand the benefits of getting a home insurance policy for yourself.

Financial Security: Protection for unexpected damages and losses.
Peace of Mind: Knowing your home is insured gives you peace of mind as it safeguards your property against unknown adverse events.
Protects Your Investment: As your home is the most significant investment, home insurance takes care of it.
Liability Coverage: Home insurance also covers medical expenses and legal costs in case somebody gets injured.
Coverage for Personal Belongings: Beyond just your home, insurance also covers the loss or damage to personal items.
Mortgage Requirement: Many banks want home insurance as part of their home loan agreement.
Affordable: Home insurance policies are affordable when you see the value they bring and, above all, the stress they take away.

Top Reasons to Buy Home Insurance Policy

Protection of the Property

When you buy a home insurance policy, you are protecting your property from various risks, such as damage caused by natural disasters like floods, heavy rains, etc. or even fires. In case of such an unfortunate event, you won’t have to worry about the cost of repairing or rebuilding your home. Most insurance policies cover major damages, minor problems, and total replacement costs.

Protection of Detached Structures

Another reason to opt for home insurance coverage is to ensure the protection of detached structures of the home, like sheds, garages, fences, and other outbuildings. Typically, detached structures are covered at a percentage of the coverage limit for your home. However, you can customize your insurance policy to ensure that these areas of your property are adequately covered.

Coverage for the Contents of the House

Whenever you apply for a home insurance policy, you need to take note of all important household essentials, including electronic appliances, furniture, and other personal belongings inside the house that could be eventually covered by the particular policy.

If some event (like a storm or fire) will eventually destroy or damage the belongings you have on the property, you can get reimbursed in part or even in full. It is a major benefit of a home insurance policy that most homeowners tend to overlook.

Liability Coverage

It is one of the primary reasons why you cannot afford to miss out on the concept of a home insurance policy. It will cost you a whopping amount of money in terms of medical bills in case someone is injured on your premises, and if there is a chance, you might be held liable for the accident.

If someone is injured on your property, you could be held liable for the accident and face expensive medical bills. However, a home insurance policy can protect you from costly lawsuits arising from such events. This coverage is especially important if you have pets or if you frequently host guests.

Loss of Use Insurance

Is your house under renovation? You might have to incur additional expenses like hotel accommodation, travel, and food expenses. All of these costs will be covered by the ‘loss of use’ aspect of your home insurance policy. It is yet another major benefit of insuring your home. It is capable of doing much more than just repairing damaged parts of the house.

Conclusion

Get maximum financial protection with the help of a reliable home insurance policy. Unfortunate events like house fires, floods, storms, or even theft can take place at any moment. Moreover, these could lead to significant damage to your house. Therefore, it is advisable to get yourself a proper home insurance policy to safeguard your hard-earned money.

Home Insurance Policy FAQs

Why is home insurance important in India?

Home insurance in India is important due to -

Increasing rates of natural calamities due to climate change
Thefts
Accidents
Unexpected events that can damage your home

What are the types of damage covered by home insurance in India?

Home insurance policies in India cover damages caused by -

Fire
Natural disasters like earthquakes
Floods
Landslides
Man-made disasters like riots or vandalism
Theft or burglary

Are items inside the home covered under home insurance?

Yes, most home insurance policies in India cover the items of your home. This includes furniture, appliances, jewelry, and personal belongings. However, they will be limited to how much they can cover.

What isn't covered by home insurance in India?

Some things that are not covered are wear and tear due to ageing, intentional damage, loss of cash, and damage caused by war or nuclear risks. The insurance will also not cover damage caused at times when the home is unoccupied.

Is home insurance mandatory in India?

No, home insurance is not compulsory in India.

Can a person buy home insurance for a rented property?

Yes, tenants can also buy home insurance to cover the home's contents. The landlord primarily insures the rented property.