Own a House? Don’t Skip Homeowners Insurance

Posted on: Nov 8, 2021 | | Written by:

Own a House? Don’t Skip Homeowners Insurance

Published on November 8, 2021. EST READ TIME: 3 minutes

Your house is not just a prized possession, it is where your heart belongs. A house is after all one of the most prominent assets of all. HDFC ERGO understands the need to safeguard your house and offers simple yet extensive insurance plans to keep your humble abode safe from all kinds of natural and man-made casualties. Homeowners insurance from HDFC ERGO will cater to just about all your insurance needs.

Understanding Homes owners Insurance

In order to understand how homeowners insurance works and its benefits, it is important to first know what homeowners insurance is. In simple words, homeowner insurance policy is an insurance that covers your house along with your personal belongings, against unforeseen accidents that could be man-made or natural.

If you are a homeowner and feel houseowner insurance is not required, consider this:

1. As reported by India Today, every 3 minutes a robbery or break-in takes place in India.
2. In 2017, the number of robberies, dacoits that took place in residential premises crossed 2.4 lakhs.
3. The value of property that was stolen from the residential premises alone crossed INR 2,065 crores.

Homeowners Insurance Coverage

Being you are a homeowner, the concern of theft always hovers over your mind. Even with the latest anti-theft devices, preventing such a catastrophic incident may not always be possible. However, with the right homeowner insurance, dealing with such a loss becomes a little easy. Under the comprehensive cover of homeowner insurance, the following are covered:

1. Fire

As dreadful as it can be, fires cause plenty of damage to the house as well as the belongings. The insurance cover will be your support in such an unfortunate occurrence.

2. Theft

No matter how common theft and burglaries are, just imagining the thought of someone breaking into your house is scary. Your home as well as the contents will be covered against losses.

3. Electrical Breakdowns

Fluctuations and electrical breakdowns can not only cause interference in the smooth functioning of daily activities but also cause damage to the costly appliances.

4. Natural Disasters

When you are in India, you are prone to calamities such as droughts, earthquakes, floods. However, your homeowner insurance will save you from such perils.

5. Man-Made Disasters

It is not just natural calamities that need protection, strikes, riots and terrorist activities can also cause damage to your lovely home.

6. Accidental Damage

The expensive fixtures and fittings that you have installed at home, would also be covered under the policy.

7. Alternate Accommodation

Your insurance policy would also cover you for the alternate accommodation that you have to hire in case of an emergency.

How Much Homes owners Insurance Do I Need?

Another question that pops into the mind when talking about homeowners insurance is how much insurance you need. Though it may be difficult to replace the sentiments attached to the house as well as your belongings, you would need to have an estimate.

The sum assured would be able to cover your house’s true value. You would have to consider the total area covered, the construction cost as well as the contents of the house.

Types of coverage

1. House Insurance for Tenants

Even if you are in rented accommodation, you can apply for insurance to cover the contents of the house.

2. House Insurance for Owners

Dealing with house damage can be traumatic. Without an adequate insurance cover, dealing with the loss can be very difficult.

Other Important Elements of Homes owner Insurance

● Dwelling Cover

The dwelling cover refers to the reimbursement that you will receive when the structure of the house undergoes damage. Make sure this amount is enough so that later you do not have too many out-of-pocket expenses. You need to base the sum assured on the cost of rebuilding the house, not the market value.

● Personal Property Cover

Make sure your insurance also covers the losses to your personal property such as the appliances, gadgets, furniture, artwork in the house.

● Liability Cover

When opting for homeowner insurance, you need to keep in mind that in case of a mishap, you will have to bear other expenses such as damages to vehicles, medical bills or any other liabilities. You would have to cater for liability cover too.

● Additional living expenses Cover

If you live in a disaster-prone area, you may consider enhancing your cover by opting for:

● Flood Insurance

● Earthquake Insurance

● Water BackUp Coverage

For most Indians, having a house of your own is the ultimate goal in life. Though many are able to achieve this goal, they do not consider securing it. To the insurance averse Indian, insurance still is an unnecessary expense. But it is worth asking yourself here, that when you can spend so much on life goals, isn’t it prudent to make sure of its protection in the future as well.

HDFC ERGO home insurancenot only helps you in shielding your home but also in giving you the peace of mind that even in case of a mishap, you might be able to recover from the monetary losses.

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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