Understanding Home Insurance Policy
Home insurance is a protection offered to the homeowners that cover any damages caused due to burglary, theft, earthquake, cyclone, fire, etc. The insurance for a home can be purchased by a homeowner, a tenant, co-operative housing society, and residential society for at least one year.
One of the crucial points to remember about your home insurance plan is that it only covers the value of your home, not the value of the land. Another important point to be considered is the quality of material used in construction. If the building uses inferior quality material for the construction, your home insurance won't be covering any damage on this account.
Also, anyhome insurance companydoes not provide any compensation for unauthorized or illegal construction. So, it is essential to analyze the location and check the laws of the construction site permit board for a particular place.
Significance of Buying Home Insurance Policy
We tend to insure ourselves with the most valuable policies. Now it's time to understand how important it is to insure the roof above our heads. Below we have enlisted the significance of buying a home insurance policy-
1. Extensive Protection
A home insurance policy gives comprehensive coverage for the home and its additional structure like your backyard, garage, and fences. However, it does not protect your land rather protects your house from any unforeseen accident that might cause damage to it.
Besides protecting your precious possession, it also lessens your financial burden by protecting you against third-party liability, and legal liability that can be raised, when a third person is harmed or suffers any injury at your property.
2. Protection for the Repair and Replacement
You don't have to spend a single penny for repairing the damages, as your home insurance policy will cover the expenses. Your home insurance policy also offers replacement in articles like- furniture, refrigerators, computers, television sets, A/C, etc.
3. Protecting Liabilities
This insurance also compensates for any liabilities that might arise in our property or by our property. For instance- if the fire breaks out in your house and causes any damage to your and your neighbour’s or third-party property, this insurance will protect you and your house from all the legal and financial expenses.
Also, your insurer will arrange temporary or alternate accommodation for you for the time your house is being repaired.
4. Protection Against Natural Calamities
Your home insurance [rptects you against the damages and losses that you might face due to natural calamities like- earthquakes, cyclones, fire, etc. It also protects you against the damages caused due to man-made disasters like thefts, burglary, robbery, etc.
5. Peace of Mind
Getting the right home insurance policy will give a peace of mind because it assists you during your tough time when you might need finances to rebuild your home. By purchasing insurance for your home, you can relax and get yourself prepared for the worst.
6. An Affordable Deal
Most of the people think that a home insurance policy is an unwanted expense or an additional expense. But the benefits associated with the plan are much more than the money you have spent. You get the maximum coverage by paying nominal premium fees. Therefore, you must look for various plans before buying any policy on the internet, and choose according to your needs & budget.
Points to Keep in Mind When Insuring Your Home
There are a few points that you must keep in your mind before jumping to the conclusion-
1. Keep a record or proof of all your insured articles while insuring your home as it will help you at the time of raising claims.
2. Invest wisely as illegal or unauthorized construction cannot be claimed.
3. Your home insurance policy only shields the building and its components. There is no such coverage for the land.
4. At the time for policy renewal, ask for different price quotes from several home insurance providers available on the internet. As you might find another offer at the lowest premium.
5. As a tenant, you can also buy a home insurance policy.
With such comprehensive benefits associated, buying a home insurance policy is not a choice anymore, but it has become a necessity. You can never predict what worst could happen in the next moment, and therefore you must get extensive coverage to protect against damages to your own property.