The Importance of Home Insurance
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.
What is 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.
How does it
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.
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:
financial coverage against calamities
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
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.
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.
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.