Why is building insurance necessary?

Posted on: Jul 23, 2024 | 3 mins | Written by: HDFC ERGO Team

Why is building insurance necessary?

Building insurance is a type of insurance which covers a commercial or residential property. The property owner buys the insurance plan to keep the building safe from various natural and man-made calamities. Read on to know why building insurance is a crucial form of insurance.

What is covered in building insurance?

Also known as home insurance, a building insurance policy offers covers such as:

1. Fire damage

Fire is one of the biggest dangers that threatens the peace of property owners. A fire can be devastating and completely damage a building. To ensure you have proper protection against fire damages, get a good building insurance cover.

2. Protection against burglary

You have many valuable things in the house such as antique furniture or art pieces. If there is a burglary, you can lose all your valuables and your house may also be destroyed in the attempt. Get a property insurance plan and keep your place safe against burglary attempts.

3. Electronic equipment insurance

There are some important electronic equipment in your house that need insurance protection. These gadgets are expensive and are protected under a home insurance plan. You get important covers like the tv insurance cover that prove to be handy.

4. Natural calamities

If your property gets damaged by natural calamities like floods, cyclones or earthquakes, you can get compensated for the damages.

5. Man-made hazards

Man-made hazards can be equally destructive and cause huge financial liabilities. These may include riots, acts of terrorism or general harm caused by someone’s malicious behaviour. You can get a claim under your building insurance plan if there is any such damage to your property.

6. Alternate accommodation

At times, due to some damage, you are forced to live in temporary accommodation. Your insurance provider will pay for the shifting and rental charges if this happens due to any of the covered damages such as fire damage or earthquake damage. You will get compensation up to a fixed amount till you can move back to your property.

As you can see, these are some very important covers that you can highly benefit from. Get yourself a good commercial or residential building insurance plan as per your requirements and keep your property safe and secure.

The final word

You have to be mindful of the inclusions and exclusions of a good property insurance policy. Go over your needs and preferences and get a policy that matches your requirements perfectly.

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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