A home represents that zone of comfort and peace for many of us. Each one puts in a lot of time, effort and money in building a home that is perfect for you and your loved ones.
Imagine the agony and pain one would have to go through if your home gets washed away in floods, like the recent one in Kerala or if it falls apart like a pack of cards in an earthquake or it is broken into. Though you might not even want to think of such situations, it is quite possible that anyone can land up in such a situation. So what do you do in such circumstances?
You usually buy insurance to protect your two-wheeler, four-wheeler, your health and now, there are insurances to protect your gadgets too. Wouldn't you want to protect your home with an insurance too? After all, a home is one of the most expensive assets that a person ends up owning during his/her lifetime and often with debt.
No matter where you stay, a home insurance is a must for any homeowner. We bring to you 5 compelling reasons why you should think of buying a home insurance.
Protection for Contents and Structure of the House: A home consists of the building/structure and its contents. These days, homes are filled with electronic gadgets, such as refrigerators, flat screen televisions, laptops, other fittings like wardrobes and modular kitchens, and of course, jewelry.
A home insurance policy is offered in two variants. A structure only policy which provides cover for the building and a contents only policy that covers the contents of the house. Or you could go in for a comprehensive policy that gives you cover for both. To insure the contents of your house, it is good to keep all receipts of purchase safely in an e-format so that they are not lost if your home is affected by a natural or a man-made calamity.
If you are a tenant, you can buy the “contents only cover” to protect the belongings of your house.
Protection Against Natural Calamities: Natural calamities can happen anytime and anywhere. There is only so much you can do to protect yourself against the fury of nature even with prior notice. A home insurance provides you with the cover for natural calamities like floods, earthquakes, tsunamis, cyclones, falling trees, storms, etc. One point that you must bear in mind here is that a basic householders insurance does not expressly cover for natural calamities. You could get your home insured for natural calamities against payment of a small extra premium.
Lessens Financial Burden on Rebuilding: The agony on the loss and damage to the property is immense. While there is nothing that can compensate your mental agony, your financial loss can be alleviated with an insurance policy. A home insurance policy provides you with an amount for rebuilding your home. Some pointers have to be kept in mind while taking an insurance in this regard. For Ex: The building cost of your home might have been Rs 15 lakh when you constructed the property 10 years ago. However, should it be damaged in a fire or a natural calamity, it would cost you much higher to rebuild the same. So, while going in for a home insurance it is good to get the reconstruction cost assessed by a civil engineer/contractor and give that figure as the cost of the structure rather than the cost at which it was originally constructed.
Offers Help with Relocation: Imagine this: you come back from a vacation only to see that a fire has ravaged your home. While it is possible to get a house reconstructed, you need someplace to stay during the interim, which would entail some kind of additional expense. Moreover, a house cannot be constructed in a matter of few days, it takes a few months at least if not years. You would already be under mental stress of having to start from scratch when you would have to bear the burden of staying elsewhere on rent/lease. There are insurance policies that offer you help with such relocations.
Offers you Peace of Mind: This is probably the most important reason that you would need a home insurance for. Nothing can compensate the distress that you would need to undergo if your house is damaged/destroyed. There can be some solace in knowing that a home insurance can take care of the financial part of rebuilding your home.
Key Takeaways:
Home insurance is one of the important components of your insurance portfolio. It is as important as any other insurances. So insure your home today and enjoy the peace of mind that comes with it.