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5 Types of damage that you should cover under your home insurance policy

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Home ownership is on the rise, and so is the need to ensure that your home remains safe from problems and risks arising out of many natural and man-made disasters. In the absence of adequate home insurance, you will risk being in a financial mess because you will have to cover the cost to repair or rebuild your home if some problem occurs. By paying one small premium, you can protect your home for a fixed period from different kinds of risks and get benefits that will keep your money and savings intact when disaster strikes. If you are a new homeowner, here are a few significant benefits to prove that you need adequate home insurance.

• Coverage in case of water-induced damage: Floods and inundation can cause different types of damage to your home and its contents. Water logging can clog your plumbing, rot the wooden fittings and furniture and completely ruin the electric system in your home. A good home insurance policy will always protect you from any such water-induced damages.

• Coverage in case of fire-induced damage: Fire is the worst enemy of your home. In a few hours, a serious fire can completely burn everything down to ashes. Fires can breakout for many reasons in a home. They can be because of electric system problems or because of gas leak. Your home insurance policy will provide appropriate compensation in case your property is damaged because of fire incidents in your home.

• Coverage in case of damage caused because of ground activity: Earthquakes are so damaging that they can literally move the ground from under your feet. If you have seen visuals of a place damaged by an earthquake, you must have realised that it can lead to a total and utter collapse of even the strongest of the buildings in a matter of minutes. Your home insurance policy will provide you with claim amount if an earthquake occurs and damages your home.

• Coverage in case of storms and cyclones: Many people have seen the damage caused by cyclone Amphan in Eastern India. The coastal portions of India are subject to cyclones on a regular basis. If you are living in or have a property in a coastal area, you will be served better by home insurance because your property is at constant risk of damage from such problems.

• Coverage from man-made problems and damages: While all other problems mentioned above are induced by nature, when you live in society, you are always at risk from anti-social elements. There is a constant threat of riots and strikes. Thieves may strike a fancy to something in your home and commit burglary. In such cases, your theft insurance policy will cover the losses you have suffered, subject to the sum insured.

Optional cover benefits that you may purchase as add-ons

The protections and benefits that have been discussed above are a standard part of any home insurance policy. In addition to these, you can also buy add-ons to your home insurance policy, which cast a wider umbrella of protection. Let us look at some of these add-on benefits.

• You can get an add-on that will cover the cost of jewellery and valuables in your home. This will include items made of precious metals like gold, silver and diamonds. In most cases, the cover is offered to 20% maximum of the total sum insured in home insurance.

• You can get an add-on that will cover the portable electronics and other expensive items in your home. The main condition is that all such items have to be less than 10 years old. Such items can cover your mobile phones and laptops, expensive cameras and binoculars. It can cover music instruments and devices like AV receivers and guitar amps and also sports gear of many kinds.

• You can also get an add-on to protect you from third-party liability. Third-party liability is a big risk when you are renewing your home. If your renovation activities cause some damage to your neighbours, your home insurance policy will allow you to claim the compensation that you have to pay the injured person.

Conclusion

In addition to this, you can also purchase special add-ons that cover your house from terrorist activity-related damage and also get insurance for pedal cycle that you may be using around your home for local mobility. Keep in mind that all these add-ons do come with their deductibles and excess commitments. It is recommended that every homeowner who wants a life of peace must invest in a good home insurance policy.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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