Why Should You Opt for Home Shield Insurance?

Posted on: Mar 19, 2025 | 3 mins | Written by: HDFC ERGO Team

Why Should You Opt for Home Shield Insurance?

When you purchase your home, your first instinct should be to protect your house. Your home is one of the most expensive investments you'll ever make in your lifetime. Therefore, you must ensure that you safeguard it under all circumstances.

Most people get home insurance to protect the house and its contents. One must know that because it is not mandatory in India, not a lot of people want to purchase it. However, that's a very big mistake you'll be making. Your home is your sanctuary; you must protect it at all costs.

What is Home Insurance?

A home insurance policy protects people against major perils like fire, property crime, and certain damage. One of the best benefits of this type of insurance is that even when you're not present in the property and are travelling, the contents will be covered.

You will have to pay additional charges if you want extra coverage for all your belongings with the home structure. For example, the premium will be higher, and deductibles will also be calculated. Deductibles will likely be calculated when you're travelling and your luggage gets lost so you claim for it. The house insurance will offer protection against man-made and natural calamities. However, certain charges will be applied to it.

House insurance usually covers two aspects: the structure of the house or the contents of the house. Depending on your preferences, you can either option for any one aspect of both. Mostly, the homeowners opt for both the coverages, whereas renters only opt for the content coverage of the house.

Features of Home Shield Insurance

Opting for Home Shield Insurance can be one of the best decisions to make, considering its unique features. It differs slightly from the standard home insurance policies, which offer extra advantages and unique perks.

New homeowners prefer the Home Shield Insurance because of all the features, such as the following:

1. It is For Everyone

The Home Shield Insurance policy is for everyone- tenants and homeowners. Therefore, it is not necessary for you to own the property if you want to apply for insurance. If you're the owner who wants to secure the home structure, or you're the tenant who wants to secure belongings- both can opt for this policy for renters insurance. However, note that the coverages and premiums to be paid will vary depending on the type you choose.

2. Covers Man-made and Natural Disasters

Some of the homeowners insurance policies offer coverage for only natural disasters. This coverage will also be limited to only specific types of disasters. However, it is important to note that the Home Shield Insurance will offer coverage for both man-made and natural disasters. So, if any calamity has been offered, you can file for a claim and get the property repaired from the damages caused to it.

3. Structure and Content Coverage

Home Shield Insurance is effective in ensuring structure and content coverage. Compensation will also be provided in case of damages and losses. It is important to note that these coverage benefits will also extend when you travel. However, the coverage you'll get for this will be slightly less if the personal property is lost off-premises during your travel.

4. Optional Coverage

Unlike other home insurance companies, you will get a wide list of optional coverages with Home Shield Insurance. You must mention all the items on the list if you want any optional coverage. Once the plans are provided, data will be covered accordingly.

5. Insurance According to Market Value

The insurance coverage that you get with the Home Shield Insurance will be according to the market value. You can choose insurance and protect it as per your premium. You can discuss with the insurance provider the kind of coverage you'll be getting based on the property's current market value.

Benefits of Home Shield Insurance

Home Shield Insurance can be your gateway to securing your property and finances. Opting for Home Shield Insurance over the others can offer many benefits. Some of the most common benefits of the insurance policy are as follows:

1. More Than Average Coverage

Home Shield Insurance isn't like your generic homeowners insurance, which offers only limited coverage. Instead, Home Shield Insurance offers wider coverage, especially for the structure and contents of the house. The insurance will provide a safer option for alternative coverage in case anything goes wrong. This can offer you peace of mind and protect the contents of your house against any losses. In case any loss or damage happens to the property, the insurer will be available to compensate for the losses.

2. Peace of Mind

Your home is not only your biggest investment but also your dearest. Therefore, isn't it essential that you choose property insurance for peace of mind? Having a shield coverage for your property provides comprehensive coverage. Thus, you'll be getting the benefit of a comfortable environment. Even though damages may not happen, it is a smart move to stay protected against those. This protects the house against major expenses and also plays an important role in avoiding hefty expenses. Therefore, you'll be financially secure too.

3. Everyone Can Purchase

Both homeowners and tenants can purchase the Home Shield Insurance. Investing in property insurance to protect the contents and home can be highly beneficial. It is advisable that you specify the purpose for which you're buying the insurance, such as homeowners or renters insurance. This can be a great addition, ensuring great convenience and protection for all your belongings.

4. Protection Against Mishaps

A property insurance policy can play an essential role in protecting against mishaps. Your insurance will cover a wide range of things that can offer peace of mind. Mishaps are uncontrolled and can happen anytime. Therefore, you must stay prepared for it and protect yourself against these odds with an insurance policy.

5. Rebuilding

If you have to rebuild the property after any chaos, the home insurance policy can be significant. If you are to rebuild the property against any chaos, you will have to pay a significant amount. However, when you have insurance, the amount will be covered in it. The insurer will compensate for the amount for the reconstruction based on the charges.

What Are Excluded in Home Shield Insurance?

While there is a wide range of inclusions in Home Shield Insurance, there are certain exclusions as well. Some of the common exclusions are as follows:

1. War damage and losses: If your property was damaged due to any mutiny or war, the coverages won't be provided.

2. Extra amount: There's a specific coverage for the insurance; however, if there is any extra amount, you will need to pay for it. Therefore, coverage will not be provided for it. Irrespective of the claim amount, if there are any extra charges, you will have to pay for it.

3. Hazardous explosions: If any hazardous explosions cause damage to the property, it will not be covered by the insurance. For example, radioactivity and nuclear explosions wouldn't be covered.

4. Collapse or damage: If the property collapses or is damaged due to any termites or latent defects, coverage will not be provided for you. A major reason is that these mishaps can be avoided when fixed in time, but if you don't, no coverage can be provided.

Conclusion

The Home Shield Insurance can be a great addition to your property. It will protect your house and your belongings against unwanted damage. You can check the coverages that it has to offer and determine whether you want anything extra. Furthermore, be prepared to pay a higher premium if you need extra coverage. Nonetheless, it is noteworthy that the investments you'll make will be totally worth it, considering your home is being protected.

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

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