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Do You Need Home Insurance?

One often hears of the adage ‘Home is where the heart is’. Owning a home is a major aspirational goal and investment decision for most Indians. A huge quantum of finance, extensive  planning and saving of funds over several years of one’s lifetime are involved in the acquisition of one’s own house property. Further, availing a home loan to fund a house property involves EMI repayment over a long period of time. Doesn’t it make sense then to insure one’s home, considering that it is such an important asset? Of course, it’s the wisest thing to do! Home insurance is not a luxury, rather a necessity. We shall understand why.

Home insurance provides financial protection against any harm or damage to one’s house property, whether owned or rented, in return for a nominal monthly premium payment. We are living in uncertain times of natural calamities, legal suits, fire, theft, electrical breakdown, accidental damage, and man made hazards like terrorist attacks, riots, strikes, etc. Thus, to provide financial cover against all of the above contingencies, it is imperative to obtain home insurance from a reputed insurance company. HDFC ERGO is one such insurer and has a track record of successful home insurance for over 16 years. A customer base of over 1 crore (and counting) is already insured with HDFC ERGO home insurance plans. Some of the reasons why one must avail home insurance at the earliest are:Protection for home and beyond: There’s a proverb ‘Don’t judge a book by its cover.’ This often holds true in case of one’s home. Especially in case of a rented property, it’s important to insure one’s belongings and valuables like furniture and fixtures, fittings, electronic goods, expensive home appliances and valuable jewellery. Besides the coverage for property structure, one can also obtain insurance cover for the garage, parking space, fencing, compound wall, etc.

Replacement benefit: HDFC ERGO provides the unique benefit of replacement of insured’s belongings based on the concept of ‘new for old’.The sum insured is determined based on current replacement valuei.e; one could claim new items of the similar make, model and capacity in case of a loss. However, one needs to ensure that value of contents to be covered is adequately declared. Items over 10 years old should be excluded.

Protection against nature’s fury: Natural disasters like floods, earthquakes and storms strike unannounced. Thus, while one is recuperating from the aftermath and shock of a natural calamity, with home insurance, one need not worry about recovery of financial loss. Depending upon selected property valuation basis the insured would be given the reinstatement value (i.e. construction cost excluding the land value) or agreed value.

A winning deal for the insured: With a nominal premium charge, one can enjoy a lump sum sum assured cover. Thus, the monetary outlay does not make one feel the pinch. Additionally, the insurance may be purchased online from the comfort of one’s home.

Third party liability: Insurance acts as a safety shield against third party claims due to accidental death, disability, injury or property damage. Thus, one is not troubled with situations beyond one’s control, as it is the responsibility of the insurance company.

Reap benefits from home loans: Banks tend to extend home loans on favourable conditions in case of home insurance. This reduces the financial risk of the lender in case of any loss.

Compensation against absence of rent: In the event of the house property becoming uninhabitable by tenants, and requiring extensive repair work, one can obtain financial assistance from the house insurance company, owing to the loss of rental income.

Relocation charge: In case of severe damage to one’s property, one may have to temporarily vacate the premises until the repair is completed. The policy makes the insurance company liable to pay for relocation and living expenditures if opted for..

Comprehensive cover: HDFC ERGO provides protection against a wide range of situations ranging from accidents, natural calamities, intentional man-made hazards, terrorist attack, electrical breakdown, fire, etc. Thus, one need not worry about whether a particular scenario has been included or not. They have got your back – its all covered.

Customized policy options: HDFC ERGO offers customized policy plans depending upon whether the insured is the home owner, a housing society or a tenant. Further, the insurance is available for a long-term period of 5 years.

Peace of mind: Last but not the least, the insurance for one’s brick and mortar dream home would ensure a sound night’s sleep. One need not have to worry about the loss of one’s valuable assets from burglary, theft or an intrusion.

One may or may not use the insurance or might feel that one has paid more than the amount claimed, however the risk of not having insurance for the roof over one’s head can be far more disastrous. Life is full of uncertainties. Rather than worry about what-ifs, what-nots and be fearful of the unknown, it’s best to buy a home insurance policy without delay. Protect your home, secure your assets and find peace of mind, right away!

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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