House is one of the most important and valued possessions one owns in his/her lifetime. We spend so much on building the house, decorating it with the best furniture and furnishings, completing it with the latest gadgets to make it comfortable for living, and maintaining it from time to time. But how far do we go to secure it against losses that are beyond our control?
Unforeseen events like flood, fire, theft, burglary, etc. can cause damage to your home and contents in it. Investing in a good home insurance plan can protect you from financial loss. Typical home insurance will cover you against fire and related perils like lightning, flood, etc. However, if you buy a comprehensive home insurance policy, then it will cover you against other risk factors like theft, burglary, etc.
Why should you buy home insurance?
As a homeowner, it is your responsibility to keep your home and its contents secured from all perils. Here are some reasons you must consider buying home insurance, even if it is not on your list.
- An insurance policy for home secures your house from any damage or loss that is mainly unavoidable and can happen anytime. For example, if a tree happens to fall on your fence, causing damage to your house, home insurance can save you from paying the replacement or repair cost from your pocket.
- An insurance policy for home provides coverage for loss or damage caused due to a robbery or theft.
- If a third person, that is someone other than homeowner or renter, gets injured in an accident that happened at home, then home insurance can pay for it as well if the person decides to sue.
- Along with the structure, it also provides cover for the loss or damage of your personal appliances like air-conditioner, television set, refrigerator, microwave, and other electrical devices. Also, it covers your furniture, furnishing, and even jewellery kept at home. However, the inclusion of items in the coverage depends on the plan you choose to buy.
What are the types of home insurance in India?
In India, various insurance companies and banks offer different types of home insurance policies to meet the requirements of the customers.
Here are a few types of home insurance in India.
- Standard fire and special perils policy – This is a basic home insurance policy offered by almost all the home insurance providers. It safeguards you against loss and damage caused to your home by fire outbreak and other fire-related perils.
- Public liability coverage – A home is where you invite your friends and family on many occasions. On the off chance, if an accident takes place like a fire outbreak and causes injuries to the guests at your home, then this insurance can provide you financial assistance to pay for their recovery.
- Burglary and theft coverage – As the name suggests, this coverage will protect you from losses and damage caused by robbery or theft.
- Tenant insurance – If you are a tenant, then this house insurance is essential for you as it covers your contents in the rented house.