Understanding Home Insurance
Home insurance (commonly known as property insurance or homeowner insurance) covers the costs of damages caused due to unforeseen circumstances such as natural calamities, man-made disasters, explosions or smoke, etc. In India, several home insurance companies are offering financial coverage and helping you with legal procedures related to your property. However, with the plethora of home insurance plans and coverage available in the market, you need to know the significance of it.
Why Does Every Homeowner Need a Property Insurance Policy?
Whether you own a house or live in a rented apartment, you can easily buy home insurance online. Here are some basic reasons why everyone should buy it-
- Protection of the structure & its content
Your homeowner insurance provider will compensate you for the damages caused to the home structure due to hurricanes, hail, fire, or any similar disasters. Other than this, it protects your personal belongings/home content, such as electrical appliances, furniture & fixtures, etc., from fire, theft, or any natural calamities.
- Protection against third-party liabilities
A home insurance policy offers liability coverage against property damage and personal injuries caused to a third party because of your insured property. However, the compensation may vary depending on the policy terms & conditions of the home insurance. Moreover, this policy covers the legal expenses if there is a court's intervention.
- Financial cover for temporary living space
If your insured house has undergone some damage and it becomes difficult for you to stay there until it is renovated, the insurer will arrange an apartment. You can reside in a rented house until your own property gets back into shape, and for this insurer pays the incurred expenses. However, the compensatory amount for this is set according to the policy wording.
- Offers peace of mind
One of the prominent reasons why you must obtain home insurance is it offers peace of mind. No one can compensate you for the distress that you might undergo if your precious possession is destroyed or damaged. Property insurance can be a solace for you during such a crisis.
Points to Keep in Mind When Buying a Home Insurance Online
Many people still think a home insurance policy is an expensive deal but it is not true. The benefits associated with this coverage will definitely turn into the best investment. For the best home insurance online, visit the official website of Policybazaar Insurance Brokers Limited, compare, and buy according to your needs & budget.
However, in all of this, here are some pointers that you should keep in mind before making a deal-
- Invest in the right property, as the insurers do not entertain claims for illegal or unauthorized construction.
- A home insurance policy only covers the home structure and personal belongings. Remember no coverage for the land.
- Maintain a record or proof of all the insured belongings or articles. This count will help you at the time of claim settlement.
- Tenants can also buy a home insurance policy.
- Like any other insurance policy, a home insurance policy also has some exclusions. Therefore, you should read & understand the home insurance policy exclusions as well.
- With a standard home insurance plan, you can easily buy add-on covers such as loss of rent cover, temporary resettlement cover, dog insurance, trees & plant cover, etc.
In India, there are several types of home insurance plans offered by home insurers. You can buy long-term home insurance that is for 5-10 years and an annual plan. As you can never predict what could happen in the next moment, therefore, depending on your needs & budget, you must opt for a home insurance policy.
Written By: PolicyBazaar - Updated: 10 January 2023