Coronavirus epidemics highlight vulnerabilities related to movable property while emphasizing the importance of immovable property such as land and property. Although your home is safe to deal with any adverse situation, they still need a cover that protects you in the event of a property disaster. Here comes the importance of home insurance.
What is home insurance?
There are various insurance policies available in the market today that promise to protect you from unpleasant situations. An insurance cover, which promises the protection of your home and property against adverse conditions, is known as home insurance. In addition to homeowners, tenants can also buy home insurance policies to protect the home and its premises from any accidents. Here, it is important to mention that home insurance and home loan insurance are two different insurance products, they serve different purposes and one should not be confused with the other.
Damage covered insurance under the house
Home insurance policies in India provide protection for the home from various unpleasant situations including cyclones, storms, thunderstorms, earthquakes, floods, land-sliding, tsunamis, avalanches, fires, terrorist attacks, thefts, thefts, and other man-made disasters. Riots, etc. The property insurance policy will provide a cover against this disaster through compensation and will help rebuild your property. In addition, there are different types of home insurance policies, and they usually offer specific cover. If you want to get protection against a bunch of catastrophes, you need to buy a customized property insurance policy. To better understand this, we need to find out the popular home insurance policies in India, which we will discuss in the next section of this article.
Losses are not covered under home insurance
There are several types of property damage that your home insurance policy does not cover. You must be extremely aware of this damage. First, a home insurance policy only covers the cost of building your home. This means it will not pay you the full value of your property, including the value of the land. Property insurance cover will not refund you the biological depreciation of the property value. Although home insurance policies provide relief in the event of a fire-caused disaster, they will reject your claim if the fire is caused by an over-operation of an electronic device. Insurance companies also do not offer cover if your property is damaged due to the ongoing war between the two countries. Some of the damage to your property that is not covered by the home insurance policy is listed below:
- Damage due to natural wear and tear
- Undeclared item loss
- Damage caused by pets
- Loss due to running a business from business activities
- Damage due to war, nuclear attack, attack, activities of foreign enemies
- Damage due to misuse of electrical equipment
- Loss of cash, antiques, and collectibles during theft and robbery
- Damage to a property under construction
- Loss of uncultivated property
- Deliberate destruction of property
Types of home insurance policies
There are currently about eight types of package policies for homeowners and shoppers in the market Some of them are mentioned below
- Standard fire and special hazard policy
- Home Structure Insurance
- Public Liability Coverage
- Personal accident
- Theft and theft insurance
- Content insurance
- Tenant insurance
- Landlord’s insurance
Home insurance policy premium
The cost of buying home insurance is rising with the massive increase in natural disasters. The premium for your home insurance policy will vary depending on the insurance cover you apply for. Typically, insurance companies refund the amount estimated under the policy agreement, after factoring in the value of the assets based on the key determinants. These include the exact location of the area, the area in which the property is spread, the quality of the materials used in construction, and the facilities.
When buying home insurance
- Look for security considering the topographic challenges of the location. A property near the sea always needs cover against cyclones and tsunamis. Similarly, a property located in an earthquake zone will need a cover against it.
- Read the policy documents thoroughly. Insurance companies will use any of these clauses when you need to complexly deny relief or reduce benefits, no matter how sweet their branding pitch may seem. You should be fully aware of your product.
- If your home is in a state of disrepair, do not waste time informing the home insurance company.
- Announce a list of all items in your home when purchasing a policy. The value of the items you forgot to mention in the home insurance policy will not be refunded.
- Insure only expensive items and replacement items that may be a problem for you. Do not extend home insurance coverage unnecessarily as it will result in higher premium payments.