What Are The Benefits of Home Insurance?
Insurance for a long time has been acting as financial safety nets during unfortunate times. Considering how unpredictable times can be, the public has also understood the value of being insured. Similar to life insurance, it is also a safe option to insure your house. In this article, let us explore the benefits of home insurance.
The home insurance sector in India does not only provide you safety during unforeseen circumstances, but also has several added advantages.
You get to select one type of cover among three depending on your needs. The three generally available covers are briefly explained below-
In the first type of cover, the insurance provider settles the loss on the basis of the property’s or contents value as decided upon during the time of agreement.
In the second type of cover, the insurance provider will arrange for a replacement.
In the third type, the policyholder will be paid according to the property’s or contents market value at the time of the incident.
You can select the one that is the most suitable to you and your family. There are best home insurance companies that are present to offer you your best fit home insurance policy.
Things to Check Before Purchasing Home Insurance-
While selecting a home insurance, it is important to understand and comprehend the nuances of it. Here are some factors that should be weighed before going forward with the policy-
Premium charges - The premiums vary for policy to policy. Therefore a thorough comparison of different available home insurances is absolutely necessary.
Claim settlement ratio - Checking the claim settlement ratio of the insurance company can give you an idea over the general service of the company.
Coverage amount - Deciding upon an appropriate coverage amount is another important aspect when buying home insurance.
Home Insurance and its Benefits-
Now, let us get to the question - ‘why is it necessary to apply for home insurance’. There are several reasons why home insurance is becoming an important investment.
The following are the key highlights and benefits of a home insurance policy-
Financial Security in the case of Disasters or Calamities
Natural calamities or man-made disasters often bring destruction with them. Natural calamities are more known to cause loss of homes.
When someone loses their home be it because of a natural or man-made disaster, they experience a great sense of dread. These are the kinds of destruction that we have no control over.
To rebuild a house or to rebuild only the affected parts of the house, one requires a lot of capital. To arrange for a lump sum so suddenly would be difficult for anyone, especially after being hit by a disaster.
When you apply for home insurance, you get to handle these damages without burning a hole in your pocket. Ensuring that you have home insurance will reduce some financial burden on your shoulders. The insurance helps you recover from disasters like floods, earthquakes, or malicious acts on your home like vandalism.
Protection Coverage for Valuables/ Contents
Some home insurance companies in India offer policies that allow coverage for the contents and valuables that are present in the home.
That is, aside from covering your home, home insurance agencies often offer arrangements to give inclusion against misfortune/harm of articles/contents kept inside the insured house. These incorporate certain costly and significant possessions - such as records, individual effects including adornments or jewellery, clothing, machines, furniture, and so on.
Protection Coverage in the cases of Theft/ Fire Accidents
Home insurance extends its cover beyond disasters. Some policies also offer theft coverage and fire coverage.
In the instance of a fire breaking out in the insured house, the policy (depending on its pre-existing terms and conditions) would cover for the damage that occurred. Oftentimes, policies also cover burglary. Home insurances help in the resettlement of lost items.
Again, it is to be stressed that different policies have different terms and conditions that accompany them. Therefore it is very important to understand them before deciding on a policy.
Third-Party Liability Coverage
Home insurance policy like vehicle insurance policy offers third-party coverage. That is, when a third-party (a guest or a neighbour, for example) gets hurt while in the insured house because of the house (for example because of a gas cylinder burst, etc.) - the insurance provider would cover the charges of the damage.
To put it simply, if a third-party is harmed/ injured because of incidents related to the insured house, the policy provides for their medical charges.
This is referred to as the ‘public liability coverage’. The policyholder has to actively opt for this converge option. It is an additional coverage.
Additional Coverage for Short-term Living Expenses
Few circumstances force us to shift temporarily to a rented place. In such situations, some home insurance policies cover such living expenses too. That is, they make allowances for the sake of monthly rents. This is often referred to as ‘temporary resettlement cover’.
This, again, is an additional coverage option that depends on-
The policy wording, and
The policyholder’s decision to opt for it or not.
It is always better to be safe than sorry. The best homeowners insurance will reduce your financial stress during hapless situations. Many of those who suffered a home loss experience a deep sense of regret for not getting their homes insured.
To ensure that you do not face such circumstances, it is better to opt for home insurance. Undoubtedly, there are many benefits of home insurance.
Moreover, having your house insured can help in speeding up your home loan process in some banks. Oftentimes, these bankers consider having home insurance as one of the eligibility criteria for a home loan.
A lot goes into building a house and making it a home. To have all such effort and time go down because of one incident is a heart-breaking experience. But when you have home insurance, you can bounce back and have your home restored or rebuilt without many hassles.
A home is one of the most treasured assets. It is where your dreams begin and your memories are written. Therefore, getting it a safety blanket is an assuring idea.
In the best interest of the readers, we advise you to go through the home insurance policy very thoroughly before agreeing to it. Since there are a plethora of policies available in the market, there would be many options to select from. Comparing and contrasting beforehand would help you in identifying the best policy for your home.
It is also to be noted that certain policies offer additional coverages for which they might charge additional premiums. All this along with a complete understanding of the accompanying terms and conditions is required before purchasing a home insurance. understanding the policy better will result in redeeming all the benefits of home insurance.
For more on such topics related to your dream home, do keep an eye out on our blog!
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