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Home insurance in India: Make the right buying decision

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Published on March 23, 2021 | Est Read Time: 2 min

Your home is your biggest investment and it has an emotional attachment with you. In case of a theft or any natural calamity, there could be high losses that could drain your savings. No matter how large or small your home is, if you do not want to incur huge out-of-pocket expenses, you must get comprehensive home insurance to keep your building structure and valuables safe. A lot of companies offer home insurance, but you must ensure that it has an extensive coverage to cover both the building and its contents.

Home Insurance Policy to Cover All Kinds of Damage

With home insurance, it is possible to mitigate the risks that are associated with disasters. The cost of repairs and renovation can also be paid for without burning a hole in your wallet. Additionally, you can live in your home with peace of mind.

In most cases, nuclear explosion and war are excluded, but basic policies cover the building with the contents in case of fire, an act of nature, or burglary. You must be very careful about the inclusions and exclusions of the policy before you sign the documents.

A comprehensive home insurance policies will protect you from various perils like lightning, fire, storm, earthquake, landslide, riot, inundation, and flood. Then there are add-on covers you may want to opt with your policy for holistic protection. These include coverage for-

• terrorism

• burglary

• theft

• breakdown of portable equipment or domestic appliance

• accidental cover for the family

• safe deposits in the bank

• coverage for pet dogs

• compensation for domestic help

There is also a cover for the loss of rent or the cost incurred for alternative accommodation because of the loss. It will allow you to recover without worrying about the expenses.

How to choose a policy?

Different lenders offer different coverage and you need to choose the one that is relevant to you. When considering the add-ons, you need to keep your home and requirements in mind to make the right call. A lot of insurance policies do not include cash when offering coverage against burglary and many require proof of purchase in case of jewellery claims. You need to take care of it when you buy the cover. It should always be taken for the replacement value and not the market value of the asset. Remember to provide all the details to the insurance company and understand the clauses well. Suppressing any material facts will increase the chances of claim rejection.

Conclusion

Home insurance should be an important part of your financial planning and it should be purchased as early as you can. There is no one-size-fits-all in the case of home insurance so you need to keep your requirements at the forefront when choosing an insurance policy. Try to pick an insurance provider that offers extensive coverage with a wide variety of add-ons. You must keep their claim settlement ratio in mind and understand the exclusions. With adequate protection to your home, you can find peace of mind and remain rest assured that any natural or man-made calamity will not drain your savings. You will be able to afford the cost of repairs or renovation without stretching the budget.

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