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Why Is it Important for You to Buy Home Insurance Policy ?

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Published on September 12, 2022. EST READ TIME: 3 minutes

Home insurance or homeowner insurance policy secures your financial expenses, which might incur due to damage caused to your home by fire, theft, natural calamity or any other unforeseen events. Moreover, a home insurance policy safeguards your house and its contents that might happen in the future. Since the initial investment in a house is much larger than other investments, it makes sense to get your home insured. Also, in a country like India, prone to natural calamities like floods and constant fire breakdown, it is advisable to have a home insurance policy. Here are other reasons one should consider buying a home insurance policy.A home insurance policy offers adequate coverage for a home and its content if any incidents occur, either accidental or natural.

• The policy is not limited to homeowners and landlords, as even tenants can buy the policy and keep their home contents secured.

• A home insurance policy offers you the option to either secure your home, its contents or both.

• You can secure your apartment or flat based on the Agreed Value Basis.

Benefits

You can avail the following benefits should you choose to buy a home insurance policy.

• Depending on your insurer, you might have to provide a list of items if the cost is above a certain limit. For example, if the cost of insured items is above INR 5, 00, 000, you don’t have to provide a list.

• The policy is quite flexible in terms of the duration. You can start from a minimum of 1 day and insure up to 5 years.

• The policy automatically reinstates the agreed upon sum of insured items.

• You can secure your jewelry, portable equipment and other valuables by paying an additional sum.

Coverage

1. Building related coverage

• Emergency Expenses

In the event of damage to the house or building, you can claim expenses related to the emergency purchase of clothes, food and other daily essentials.

• Building

The insurer will indemnify the policyholder if there is a loss or damage to the building or flat. Home insurance takes care of the repair and replacement of every damaged or stolen property in the home. If your home becomes uninhabitable after an unfortunate event, home insurance covers your temporary living costs like rent or hotel bills until you renovate your home or replace it. You can avail of this facility with alternate accommodation cover under HDFC ERGO home insurance.

• Artworks, Painting etc.

The insurer will indemnify you with the compensation for artworks, painting etc. after the value is agreed upon by a government-approved evaluator or one chosen by the insurer.

2. Content of home coverage

• Loss or damage to content

Depending on the items that have been insured while buying the policy, the insurer will compensate the policyholder.

• Jewelry or valuables

The insurer will compensate the policyholder on the loss of jewelry and other valuables as long as they are within India. With some additional amount, you can extend it to worldwide coverage.

3. Protection against liabilities:

Home Insurance also pays for any liabilities caused in or by your property. For example, damage caused to your neighbour's home due to fire spread from your home or an accident in your home injuring a third party or any family member. It protects you and your house from any and every legal problem.

4. Protects against Natural and Man-made disasters:

Your home insurance shields your home against damages caused due to natural calamities like floods, earthquakes, fire, lightning, cyclones, etc., and man-made hazards like vandalism, thefts, riots, etc.

5. Loss of Rent

When your residential property becomes uninhabitable, you can give it for rent. In that scenario, the losses incurred will be taken care by insurer if you opt for loss of rent cover under HDFC ERGO home insurance. Home Insurance does cover a lot of instances and scenarios. However, it leaves out a few as well. For instance, willful damage to a property, or damage to the home during a war, or due to natural wear and tear are not covered. Buying adequate coverage for your largest investment is one of the smartest things that you can do today.

Conclusion

Unfortunate events like floods, fires or theft can happen at any given time and could lead to vulnerable damages to your residence, thereby draining out years of your hard-earned income. Hence, it is advisable to have a home insurance policy. You can opt for an HDFC ERGO home insurance policy where you can cover belongings up to Rs 25 lakh and get discounts up to 45% on premiums.

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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