Home isn’t just where your heart is. It is also where you store many assets that have both financial and emotional value. But when it comes to protecting the home with insurance, Indians have traditionally been hesitant. The main reasons are a lack of understanding, misconceptions regarding expenses involved, or simply procrastination. So, home insurance penetration is just about 1% in the country.
It is necessary to debunk the myths around house insurance so that you gain a clear idea of the costs and benefits to make an informed purchase decision. This is important since certain events like natural calamities or a burglary cannot be predicted. While insurance cannot replace what you’ve lost, it can compensate for the monetary value and even cover your repair or rebuilding costs. Here are more reasons why home insurance cover is a smart idea.
Covers Valuables and Assets
The contents in your house, including important documents, expensive clothing, home appliances, jewellery, artifacts, furniture, and electronic items, can be covered with home insurance. The cost of replacement or repair of any expensive item can be reimbursed. Many home insurance policies also cover damage or loss of personal belongings of the domestic help, especially associated with natural disasters like a flood or earthquake, and manmade incidents like theft.
Third-Party Liability Cover
Generally, home insurance covers legal liabilities that may arise due to death or injury caused to a third person within your home’s premises due to an accident. Homeowners are also insured against property damage to a third party, including their vehicle, expensive items, and general belongings. Physical injuries are also covered. These also extend to your domestic workers. This benefit of home insurance is typically known as legal liability coverage.
Cover Against Natural Disasters
India is among the world’s most disaster-prone countries. So, damage due to natural catastrophes is a major concern for homeowners that live in flood- or earthquake-prone areas. The home structure can be destroyed for several reasons, such as hurricanes, storms, floods, and fire. Rebuilding and repairing the home can be a huge expense. The good news is that home insurance benefits the policyholder by offering a financial cushion against costs.
Extensive Protection
This helps homeowners financially protect the exteriors of their house. It includes the compound, lawn, fence, driveway, shed and garage. If any of these areas are damaged due to natural disasters, like a lightning or hailstorm, your house insurance will cover for the damage. However, insurance providers usually do not offer cover for pest infestation or general wear and tear.
Temporary Accommodation Expenses
If your home is destroyed to the extent that you need to find alternative accommodation till the damage is repaired or you can invest in a new home, temporary accommodation coverage comes in handy. Home insurance offers financial support to help you move to another place till your home is functional and ready to live in once again. However, such coverage is typically not offered under the standard benefits of home insurance. Check with your insurance provider to add this coverage as a rider, if available.
Investing in home insurance is worth every rupee. Certain banks also prefer customers' home insurance while sanctioning a home loan. Compare different policies online and buy the most suitable one depending on your budget and needs. The benefits of opting for a home insurance transcends covering merely the physical structure or contents of your house. Home insurance also has another benefit to it, which is about safeguarding the beautiful memories that you have cherished in your home as a part of your life’s journey.
