Importance of having a Home Insurance policy

Many times, you might have come across the term home insurance. However, it is a

factor that is often overlooked by people while buying a house. With so many

unpredictable incidents happening around us, taking a home insurance policy helps you

to cover unexpected expenses that may happen when there is damage or loss in your

house. Have you heard what is home insurance and what are the benefit of it? Let us

discuss the importance of it in detail.

What is home insurance?

House insurance is a form of property insurance that covers losses and damages to an

individual’s house & assets in the home. Home insurance also includes liability

coverage against accidents in the home or on the property.

Home insurance can give you financial coverage if any catastrophic event like an

earthquake, fire, or flood occurs resulting in property damage or theft of valuable

assets in your home. You can avail yourself of property insurance to ensure financial

security during such an unfortunate incident. The insurance plan will be valid for a

certain time period after which you have to renew it. A good insurance policy will save

you from spending repairs, renovations in case of damages.

How does it work?

By paying the insurance provider a premium sum, a home insurance policy can be

initiated. In order to benefit from insurance coverage, you will have to continue paying

this premium according to the stipulated timeline. According to the insurance provider,

the premium amount and coverage requirements can differ. To find out which one suits

your budget and demands, you can make a comparison between various property

insurance policies. For an aged home, the premium amount would typically be greater

than that of a newly built house. Modern homes and apartments will be equipped with

all necessary safety measures like fire extinguishers, smoke alarms, security

surveillance systems, etc which will reduce the chances of environmental and electrical

blunders.

Insurance companies offer various types of plans, such as building insurance, material

insurance, tenant insurance, landlord insurance, personal injury cover, coverage of

public liability, etc. To learn more about these coverages and discuss the best

alternative available for you, it is advisable to talk to reputable property insurance

professional. Now that you know what home insurance is, let us explore the benefits of

having property insurance now.

Benefits of Home Insurance 

Provides financial coverage against accidents:

While buying a home you should consider availing of a home insurance policy as it

offers you financial security against natural and man-made calamities that damage

your house. This can include calamities like earthquakes, floods, storms, explosions,

fires, electrical, etc. Apart from natural disasters, home insurance also gives coverage

against unexpected man-made disasters like explosions, strikes, and riots that may

destroy your property structure. You can increase an insurance claim to get the

financial assistance needed to recover the loss or repair your house.

Coverage against loss of your valuable assets:

Home insurance will also have coverage against the loss or damage of your valuable

assets stored in the house. This can be a result of robbery or any other man-made or

natural incidents. Personal assets like jewelry, gold, cash, furniture, and other

appliances will be insured under the home insurance policy. So if you face the loss of

these things under any unexpected circumstances you can claim insurance coverage.

Moreover, the premium amount is usually much lesser as compared to the real value of

your possessions.

Provides expenses for temporary living:

If your house encounters internal damage and you want to stay in another house

temporarily, you may be eligible to receive the rental expenses from the insurance

company. The terms and conditions may differ according to the insurance policy you

have availed of. So a home insurance policy would allow you to stay in a rental house

until the moment you renovate your house and get back to a good condition. The

additional financial burden of paying rent will save you from this.

Additional coverage:

Insurance companies also provide many other extra benefits for the insured apart from

the above. To ensure a smooth living experience even in the midst of calamities,

certain insurance companies can provide you with additional coverage limits, premium

discounts, and exciting add-ons. For the advantage of homebuyers, many builders

provide free house insurance coverage for a fixed time period.

We hope that this blog about home insurance was helpful to you. You can consult a

trusted and experienced Insurance agent or real estate brokers to gain more insights

about property insurance policies in your city.