The Importance of Home Insurance Policy in India

Buying a house is an arduous task that involves meticulous planning. But, when it comes to a home insurance policy, most house-owners overlook this and end up suffering the consequences. Being a neglected product in India, many individuals are unaware of the benefits of having a home insurance policy. The importance of the home insurance policy can only be appreciated if any misfortune strikes. Owning a house is the dream of every person, but they forget to take care of it. Having a home insurance policy provides financial assistance in case your house is destroyed or damaged by a natural disaster like an earthquake, flood, in case of fire, etc. Here are some of the reasons why home insurance is the need of the hour.

It is a lot more than protecting your home.

Home insurance does not only protect your home but also provides coverage for items in your house. A comprehensive home insurance policy also covers the loss because of theft, burglary, and structural ability.

Provision of replacement for your loss

Home insurance provides you financial security with the added benefits of the replacement of your insured belongings. It depends on which type of home policy you have chosen.

Inexpensive

Though the home insurance policy seems to be an unwanted expense, different types of policy schemes can benefit much more than money can buy. Mainly, comprehensive policy schemes cover every content of the house at nominal rates.

Protection against legal liabilities

Home insurance provides legal coverage protecting you from being liable if someone is injured in or outside your house. This is a great way to protect yourself from frivolous lawsuits that have been known to arise from time to time.

Covers temporary living expenses

If any person wants to rebuild or renovate their house, the home insurance policy also covers temporary expenses that arise due to relocation or finding alternative accommodation. Since renovation or rebuilding takes much time, one has to live in some other place, and all the expenses that are risen are covered under the home insurance policies.

Additional covers

All the policyholders can also avail additional covers. Accordingly, the premium changes depending upon the type of add-on covers in the policy. Do note that there could be limits on certain items. Under some home insurance policies, find can claim for personal accidents and payment compensation for the permanent or partial disability from an accident.

Conclusion

A home insurance policy is a crucial precautionary measure that every house owner should opt for, to safeguard the asset that has both emotional and monetary value. Also, a home insurance policy offers additional benefits like theft protection, protection against legal liabilities, and natural calamities. Therefore, ensure that the policy is not undervalued by declaring accurate values of the assets so that the exact sum is arrived at. Also, understand the terms and conditions of the home insurance policy and review every 3 to 5 years as reconstruction costs increase due to rising inflation.