You may have come across the term home insurance many times. However, it is a factor that is often overlooked by people while purchasing a house. With so many unforeseen events happening around us, taking a home insurance policy helps you to tackle unexpected expenses that may arise when there is a damage or loss in your house. Have you wondered what is home insurance and what is the benefit of it? Let us discuss the importance of home insurance in detail.
Home insurance is a type of insurance which offers coverage against your property damages, loss of personal assets, etc. The coverage limit usually varies according to the type of insurance plan which you are availing. Your house is one of the costliest assets you possess. Home insurance can give you financial coverage if any unfortunate event like a fire, earthquake or flood occurs resulting in property damage or theft of valuable assets in your home. You can avail home insurance to ensure financial security during such unforeseen circumstances. The insurance plan will be valid for a specific time period after which you will have the get it renewed. A good home insurance policy will save you from spending a huge amount of money for renovation or rebuilding your home structure in case of damages.
A home insurance policy can be initiated by paying a premium amount to the insurance provider. You will have to continue paying this premium as per the stipulated timeline to avail the insurance coverage. The premium amount and coverage criteria will vary according to the insurance provider. You can do a comparison between different home insurance plans to find out which one fits your budget and requirements. The premium amount for an aged property will be usually higher than that of a newly constructed house. Modern apartments and homes will be equipped with all necessary safety measures like fire extinguishers, smoke detectors, security surveillance system, etc which will reduce the chances of environmental and electrical mishaps.
Insurance companies offer different types of policies such as Building Insurance, Contents Insurance, Tenant’s Insurance, Landlord’s Insurance, Personal accident cover, Public liability coverage, etc. It is advisable to speak to a reliable home insurance professional to understand more about these coverages and explore the best option available for you. Now that you know what is home insurance let us now discuss the benefits of taking a home insurance.
Here are the major advantages of having home insurance policy coverage:
Provides financial coverage against calamities
While buying a new home you should consider availing a home insurance policy as it gives you financial coverage against natural and man-made calamities that damages your house. This can include calamities like floods, earthquake, storm, explosion, fire, electrical etc. Apart from natural calamities, home insurance also gives coverage against unforeseen man-made disasters like explosion, strikes and riots that may destroy your house structure. You can raise an insurance claim to get the financial support needed to recover the loss or repair your house.
Coverage against loss of your valuable assets
Home insurance will also offer coverage against the loss or damage of your priced assets stored in the house. This can be as a result of theft or any other man-made or natural incidents. Personal assets like gold, jewellery, cash, furniture and other appliances will be insured under the home insurance policy. So if under any unforeseen circumstance, you face the loss of these things you can claim for insurance coverage. Moreover, the premium amount is usually much lesser as compared to the actual value of your belongings.
Provides expenses for temporary living
If your house encounters structural damage and you want to stay in another house temporarily, you may be eligible to get the rental expenses from the insurance company. The terms and conditions may vary according to the insurance policy you have availed. So a home insurance coverage will help you to stay in a rental house till the time you get your house renovated and gets back to a good condition. This will save you from the additional financial burden of paying rent.
Insurance companies also provide many other additional benefits for the insured apart from the above. Some insurance providers will provide you extra coverage limit, premium discounts and exciting add-ons to ensure a seamless living experience even amidst calamities. Many builders offer complimentary home insurance coverage for a specified time frame for the benefit of homebuyers.
We hope that this article about home insurance was helpful to you. You can consult a trusted and experienced property advisor or insurance provider to gain more insights about home insurance policies in your city.
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