Why Is it Important for You to Buy Home Insurance Policy ?
A home insurance policy is for securing your house and its contents against unforeseen events or incidents 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. Here are some other reasons why 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.
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.
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.
If there is a loss or damage to the building or flat, the insurer will indemnify the policyholder.
- 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.
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.
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.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.