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
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
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.
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.