Also known as homeowners insurance, the home insurance protects your bungalow, flat (owned and rented), etc., from potential threats of burglary, fire, etc. Some damages might cost you a fortune. If you have insurance for your home, that will guard you from such threats and losses. But, before buying home insurance, you must know what a policy must cover. In this blog we will discuss 5 damages that an ideal home insurance must cover.
What are the damages that homeowners insurance must cover?
Below are the 5 damages that must be covered under homeowners insurance –
Fire and other perils: With so many things happening, there is always a chance that your house might get caught on fire due to several external reasons. Homeowner insurance covers any loss or damage caused due to natural calamities such as earthquakes, volcanic eruptions, strikes, storms, cyclones, floods, missile testing operations, riots, aircraft damage, lightning, etc. If you have home insurance, the insurance provider will compensate you for the damage caused due to perils less the homeowner insurance deductibles.
Content damage due to natural calamities: Everything in your home is valuable – be it a vase or a vintage chandelier that you have purchased. Home insurance ensures that your home and the things present are protected. This means home insurance protects the home content from any damage or loss caused by fire, theft, etc. The content covered are – refrigerators, television sets, important documents, and many more. The insurance provider will cover in case of floods, earthquakes, or any other mishaps that destroy the content.
Content or home damage due to burglary and theft: Homes, especially individual structures can be prone to theft and burglary. This is a common crime that is prevalent globally. A homeowner insurance plan protects you and your family from such situations. If theft or burglary in the house causes damage to the home’s contents, the insurance provider will offer compensation equivalent to the loss incurred to your valuables.
Personal accident: In case of an unfortunate accident or any physical injury caused to you in any part of the world, which leads to your demise or causes permanent disability, the insurance provider will help you by compensating for the loss incurred.
Landlord: If you are a landlord renting out your property, a homeowner insurance policy will greatly assist you. This is because a home insurance policy offers protection against any damage caused to the property that might lead to a huge financial loss. It also protects you if the resident becomes uninhabitable due to some reasons listed in the policy documents. An uninhabitable home means loss of income. Hence, an insurance provider helps you under those circumstances, depending on the terms and conditions of the policy.
What are the reasons to buy a home insurance plan?
Below are some of the reasons why you must buy a home insurance plan –
- Home insurance protects the house structure from any external damage caused due to a tree falling on the roof or damage caused to your boundary due to a collision with a car.
This means under such circumstances; the insurance provider will compensate for the damage. - If you are looking to take a loan from the bank to construct or buy a house, they will first ask if the house is insured.
- An insurance policy for your home also protects you from the loss of items such as – refrigerators, televisions, furniture and furnishings, and sometimes your jewellery.
- You will also be protected against any theft or burglary which causes the loss of the content of the house.
What are the eligibility criteria to buy a homeowners insurance policy?
If you are planning to buy an insurance policy for your residents, you must fulfil the following criteria –
- You can buy home insurance if you are a –
- Homeowner (you can buy homeowner insurance if you have your property)
- Tenant (you can buy home insurance if you want to protect your house content or belongings)
- Cooperative society (as a member of a cooperative society, you can purchase homeowner insurance to safeguard some of the areas of the property)
- You must be a resident of India.
- You must have a strong credit score. If you claim home insurance under any uncertain situation and your credit score is low, the insurance provider might reject the claim. It might also lead you to pay a higher premium or disqualify you from purchasing new insurance.
- The insurance provider also considers distance from the sea or dense forest that can lead to forest fires and cyclones.
How to apply for a home insurance policy?
Applying for home insurance is very easy. Below are a few steps that will help you buy insurance for your home –
- Login to the insurance provider’s website.
- Check the home insurance available. Compare and select the plan you want to buy.
- Click on the Apply Now or Buy Now option.
- A form will appear, and you will need to enter the details of your property – if it is rented or self-owned, the location and age of the property, type of cover you want.
- You will also have to enter your personal details, email, and phone number.
- Once you enter the above details, you will be shown the premium you need to pay.
- Make the payment online using UPI, net banking, or via debit card.
- Once the payment is made, you will receive a copy of the insurance bought in your email address.
A homeowners insurance plan protects you from all the adversity in your home. This is because we live in a time where uncertainties and mishaps are persistent. Always read the policy document and the terms and conditions of the home insurance before purchasing a policy. Also, it is important to discuss the same with your insurance provider so that all the inclusions and exclusions are clear to you – this makes the claim process smooth.
Disclaimer – The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
