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Why home insurance as important as health and term insurance?

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Published on March 23, 2021 | Est Read Time: 3 min

As a responsible individual, you must have realised that getting appropriate insurance is extremely necessary. You must insure your vehicles as it is a legal mandate, get enough health and term insurance to protect you and your loved ones. Another kind of insurance that everyone must get is home insurance. Home insurance is equally necessary for both homeowners and renters. Adequate

 

>home insurance can keep you safe from very large expenses in case of something untoward happening. Let us have a look at some of the common features that make home insurance a very important proposition for everyone.

Common covers available under home insurance

• Fire damage protection: Fire is one of the most prevalent causes of property damage. It is also something which can cause total and utter destruction of your home and everything in it. Fire can be caused by many reasons ranging from leaking gases to electrical short circuits.A good home insurance policy will protect you against fire.

• Protection from risk caused by natural calamities: Predicting natural disasters is so complex that government have to literally develop super computers to do it. But as a homeowner you can simply get home insurance and rest assured. The statistics show that 68% of land in India is at drought risk, 60% land is at earthquake risk, 12% at flood risk and 8% at cyclone risk. Every one of these can cause significant damage to your home. Generally, a home insurance policy will provide you protection against all kinds of natural disasters.

• Risk of breakdown in electrical devices and systems: Electricity has made life much easier for everyone. By taking away a lot of effort involved in the daily activities, it has freed up people to pursue more fruitful activities. Yet electricity is a fickle system and if not handled carefully, can cause financial and personal damage.With home insurance, you get protection that any electrical equipment in your home is covered under cases of electrical breakdown.

• Risk of theft and burglary: Home insurance was originally conceived to work as a protection against theft and burglary, which have been prevalent since we have had homes. People tend to make bad choices under stressful conditions. You should not be the one made to suffer because of bad decisions of other people. With proper home insurance, your home and its contents are protected against any risk of theft of burglary.

• Risk of damage caused in riots and strikes: Riots and strikes can occur at any time because as with the cases of theft and burglary, they arise out of some people making bad decisions. Many people suffer unwillingly in times of unrest. Your home insurance policy is your protection against the risk of damage that may occur to your home in cases of riots or strikes.

Optional covers you can purchase under home insurance

• Public liability: Not many people realise this, but public liability add-on is very important for homeowners. Imagine a scenario that you are doing some renovation work in your home and an errant nail or splinter flies and injures your neighbour! They can sue you for liability and you will have to pay them from your pocket. A public liability cover protects you from such risk by taking care of compensation to be paid to the claimant.

• Cover for your valuables and jewellery: The valuables and jewellery that you keep in your home can include items made of any precious metal and includes diamonds as well. You can also cover sculpture and expensive watches in this. Your home content can be protected for as much as 20% value of the sum insured as an add-on.

• Protection for portable electronics: You must have many portable electronics lying around your home. These can include things like laptops and phones which can each cost tens of thousands, probably lakhs of rupees.You can also cover sports equipment, music equipment and some other specified items. The cover must be purchased as an add on. The main condition is that items must not be more than 10 years old.

Conclusion

Getting home insurance is absolutely necessary for every person who owns a home. Your home is simply the most valuable investment you will make in your life. If you do not take proper insurance for your home, you will have to suffer a lot in case anything unfortunate occurs. With home insurance policy in force, you are protected against damage caused by both natural and man-made factors.

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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