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10 Smart Reasons to Avail a House Insurance Policy in India

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Published on May 19, 2021. EST READ TIME: 3 minutes

House ownership is a significant milestone for many, as it allows them to realise a dream of securing a permanent residential ownership that frees them from life-long rental expenses. No doubt, it is a significant financial decision. But, as valuable as a residential property is, the importance of home insurance in India cannot be overstated.

A residential property may necessitate modification from time to time, such as repair, renovation, etc., due to unavoidable circumstances, which can be costly. A home insurance policy is thus intended to keep your house financially protected against damages caused by specific causes. Some of the prominent reasons why a home insurance cover in India is needed are listed below.

10 Reasons Why You Must Avail a Home Insurance Plan:

• Financial protection in case of any damage or destruction to property

  Any damage or destruction to the house is covered under home insurance in India. Thus, in case of events like tree falling on your house or any third-party activity leading to property damage, existing coverage benefits mean you would not need be required to pay for any repair or replacement of damage, ensuring financial protection.

• Loan against the house is available only for insured property

  Homeowners can always utilise the inherent equity of their property to raise funds in the form of loans. Nevertheless, most lenders will only lend against a house or property if it is insured. Hence, in order to keep your borrowing options open, you must invest in a home insurance policy.

• Protection against natural and man-made calamities

  Along with unforeseen regular damages, home insurance policies also cover damages due to natural calamities. They can include earthquake, floods, heavy rainfall, thunderstorm, etc.

  You can also stay financially protected against any damage to your house in case of man-made calamities like fire, riots, strikes, etc.

• Coverage benefits beyond your home

  Home insurance in India covers much more than just the house you live in. Availing the insurance policy also comes with coverage benefits extended to all components in the compound your house stands in. They can include, but are not limited to, a shed, garage, fence, and other structures.

• Temporary living expenses coverage

  Under circumstances where your house has sustained damage and rendered temporarily uninhabitable, a home insurance policy can come to the rescue. In such cases, you can thus avail financial support under the policy for any rental expenses and other costs of living until the rebuilding or repair is completed. The cap on such reimbursement is determined by the insurer based on policy wordings.

• Protection from any legal or third party liability

  Home insurance also covers third-party liabilities and legal claims arising from incidents on your insured premises. Thus, if there is property damage to a guest at your house, personal injuries, or legal liability to family members residing n your house, some of the insurance plans cover it all.

• Affordable

  These insurance plans are also reasonably prices for the extent of coverage they provide. You can thus be assured of receiving widespread coverage benefits while paying a low premium and remaining financially protected for covered losses and damages.

• Coverage for house appliances

  In some cases, home insurance in India also covers house appliances against financial loss or damage. Such appliances can include refrigerators, computers, television sets, air conditioners, and such high-end appliances. Such coverage can also include other loss of other valuables stored at your home like jewellery.

• Financial protection in your absence

  Some of the best home insurance policies are well-known for providing financial coverage benefits in case of the insured’s absence. Thus, if there is any damage to the house property while you are not on the premises, the insurance policy will cover the costs.

• Coverage against losses due to theft or robbery

  Home insurance policies also extend coverage to you in case of losses sustained due to robbery or theft at your insured property. You can provide necessary ownership documents of such belongings to claim reimbursement.

Conclusion

While these were some of the top benefits of availing home insurance in India, they are not exclusive. Plus, benefits may vary from one insurer to another, as well depending on the policy chosen. Nevertheless, the essence of availing insurance cover for your house is to provide you with long-term peace of mind against various financial and non-financial worries.

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