What are the salient features of home insurance?
Home insurance plans offer coverage of the liabilities that arise out of damages to the house and/or the contents due to man-made reasons like burglary, theft, etc. as well as natural calamities like fire, floods, lightning etc. Here are some of the key features of the best home insurance policy:
- Cover for Damages :-The fundamental constituent of a home insurance policy is the coverage it offers against different damages. Home insurance policies not only protect your house but its surroundings, and the contents of the house.
- Covers the Building :-Cover for the building/structure is the basic coverage that every home insurance plan offers. This protects the physical structure of the building/house/dwelling against different risks and perils. The coverage offers protection to the structure including electrical apparatus, air-conditioning, building, plumbing, heating etc.
- Covers Additional Structures :-Apart from coverage to the building, home insurance policy also offers coverage to the additional structures around the house (that might not necessarily be attached to the building). Some of the examples may be fence around the house, detached garages, retaining wall, backyard shed, mailbox, the driveway, pool etc.
- Covers Personal Property/Possessions :-Home insurance policies also offer cover for personal possessions/property or the house’s contents against different perils and risks. House insurance policy might include electrical appliances personal computers, television sets, refrigerators, microwaves, air-conditioners, etc. It includes furniture such as dining tables, couches, beds, together with furnishings such as rugs, curtains etc. Most often, expensive assets including jewellery are also covered.
Benefits of home/property insurance
There is no denying of the fact that house insurance is necessary; however, there are other benefits of buying the best home insurance policy. Have a look below:
- Get comprehensive coverage to both the content and structure of your home.
- Secure your every asset from any mishap by opting for a right property insurance plan.
- Buy home insurance policy at comparatively lower premium rates than other insurance policies.
- Reduce stress and tension level for you will have property insurance to fall back to, in case of unforeseen circumstances.
- Timely house insurance pay-outs allow families to go through the rebuilding process quickly, helping them to move on and get back to their normal daily lives.
- People who do not want to buy a comprehensive home insurance policy can buy a Fire Insurance Plan that will offer a cover against perils like fire, etc. Nevertheless, you should not forget that the coverage offered by a comprehensive house insurance plan is much higher.
- Moreover, many house insurance companies also offer riders like Temporary Resettlement Cover, Loss of Rent Cover, Dog Insurance Cover, etc.
- This is not it; house insurance claim settlement process is hassle-free and quick in many cases.
Types of home insurance policies
To meet different requirements of customers from every walk of life, the house insurance providers in India offer various insurance policies.
The various types of house insurance policies help the customers to comprehend the importance of having an insurance policy and zero down a policy on the premise of the specific requirements.
In India, generally, the following types of home insurance policies are offered, which are:
- Standard Fire and Special Perils Policy
This is one of a kind of property and casualty insurance policy, which is offered by most of the property insurance providers within the country. It offers protection against special perils and fire-related outbreak.
- Public Liability CoverageA home is a place where you reside and it is obvious that your friends or relatives will visit you.
On the off chance, there is a possibility that any of the guests or any third-party may encounter any loss or damage caused either to them or the property within the insured’s house. Under such circumstances, this house insurance comes at your rescue.
- Building Structure/Home InsuranceThis house insurance policy offers protection to the structure of your home from any hazard or perils. Besides, it also provides a cover against any damage caused to the permanent fixings of the home such as fitting in the kitchen, washrooms, ceilings and so forth.
- Burglary and TheftIn case of any robbery or theft that happens in the insured house causing damage to the contents present in the house, this house insurance policy provides cover for the equivalent.
- Personal AccidentThis house insurance protects you and your family. In an unfortunate event such as an accident or any physical injury incurred anywhere across the globe, which led to a permanent disablement or demise of the insured person then the compensation for the same shall be provided.
- Contents InsuranceRemember, buying this house insurance assures that not just the house beside every content present in the home is valuable and it protects the goods from any damage or loss under perilous situations like fire, theft, and so on.
- Landlord InsuranceIf you are a landlord, you need to maintain the building/flat and its structure. It is a big responsibility.Besides, a standard building insurance policy is generally not designed catering the interest of a landlord. So having this house insurance policy is necessary, as it will protect you from any loss of rent or public liability.
- Tenant Insurance
If you are, tenant it means that you might be residing in a rented flat or house. Therefore, if you are a tenant, opt for choosing a cover for the content that belongs to you.
This house insurance is a necessary buy for every tenant.
Eligibility criteria to buy home insurance plan
House insurance is an important aspect to secure your home against any unforeseen event. Anyone fulfilling the following criteria is eligible to buy a home insurance policy:
- Anyone willing to buy property insurance must be a resident in India. The policy can be bought by individuals as well as by the companies. However, a house insurance multi-year policy can be bought either by the owner of the house or the flat.
- The person intending to buy property insurance must own the property or should reside in the property.
- In case you live in a society, then you must be a member of the society managing committee.
- To purchase house insurance for the society, the member of the society managing committee can make the purchase. The policy will cover the society as well as the utilities, which are in common use of the society.
Who should buy home insurance plan?
Home insurance policy is for people who have a home whether own or rented. There is a myth that only home-owners should buy a home insurance plan. Let us tell you a case of Mr Vijay Gupta and how having a property insurance policy saved him during a crisis.
Two months after Mr Gupta moved to a rented apartment in Mumbai, a catastrophic fire engulfed furniture and other appliances worth Rs 8 lakh. Thankfully, he had the right type of property insurance policy and he could manage to settle back to normal life again easily and without any financial stress.
It is a misconception that only house owners should buy home insurance. Although, the house may belong to a landlord it has contents which belong to you which makes it imperative to buy a property and casualty insurance. Irrespective of the fact that whether you are a tenant or owner, buying home insurance should be your top priority.
Tom Cruise
Even, there are various house insurance providers, which provide exciting discounts to people who have bought over 3 home insurance covers. However, do not let discounts make you buy those covers, which you do not need. For instance, if you are a landlord then avoid buying a property insurance policy to cover the contents of the house. Leave that to the tenant. There are various property and casualty insurance providers who offer discounts if you buy it for a longer duration. You can ensure the house for up to 10 years, which not only gives peace of mind but you also get a chance to earn lucrative discounts.
