Home insurance & its importance

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Food, Shelter, and Clothes are the basic needs for a person. When a disaster takes place, it

affects them in the long run by losing their home, and all the things. Home Insurance is a

policy which ensures you guarantee and protects your home. If you ever lose or any damage

happens to your home, home insurance comes in rescue and helps you to get back to

normal.

Some states which lie in low lying areas are being majorly damaged due to the natural

calamities. We built or buy our houses with the hardwork we payoff, so safeguarding is not

neglected.

What does home insurance offer?

Some situations are unwelcomed and unpredictable like the natural calamities or Act of God,

such as floods, storms, earthquakes and fire accidents. Some unsafe situations like burglary,

theft or terrorism. Even after 100 safety measurements there is no guarantee that the

damage won’t happen. An insurance covers the damage, and comes into rescue to help you

give shelter.

● They offer protection over damage, the expenses after the damage caused due to

any calamity are provided.

● It might be the jewellery or expensive electronics that might be recovered with the

insurance policy.

● Alternate accomodation is provided in case of severe damage due to natural

calamities.

● Discounts and less duration of premiums based on the owner requirements.

Types of Home Insurances

● Liability home insurance

● Theft or Burglary insurance

● Standard Fire and special perils policy

● Building or Home structure insurance policy.

All the policies include a damage recovery based on the event. Liability insurance is a third

party insurance policy, where it is applicable when a damage is caused by another person.

Building or Home structure insurance policy which is mostly useful for those who give for

rents or business purposes.

If your neighbour’s house is damaged because of your negligence, like a fire accident from

your house, it is claimed through liability insurance.

Electricity, or power supply damages are recovered through this policy.

Theft or Burglary instances are recovered by this policy whether you are a tenant or the

owner, it is better to insure your things beforehand.

Some policies provide an all in one policy, some only provide for a few instances. Choosing

the policy based on the instance or the premium per year or month is by the policyholder.

Why is it important to have home insurance?

● It covers the damage according to the premium or policy you opted for.

● Natural or man made disasters do not come with a warning, a protection or a

recovery claim is required to compensate.

● Also, the insurance provides temporary living expenses till you rearrange.

● Not just the owners but the tenants do require insurance. When a theft or Burglary

happens, or a natural calamity the home may not be yours, but the things inside the

home are recovered through the tenants insurance policy.

● When the owner of the home insurance dies, the insurance will be carried on to the

nominees and helpful for the family.

The premium policies price depends on the worth of the home. The higher the premium is

,the higher the compensation or recovery would be.

The location also plays a vital role, if the home is located near any low lying areas there is a

risk of floods. In this case, the premium is higher.

In the U.S it is around $1500 per year and $120 per month on an average for home

insurance. In India, for a 1000 sq.ft house, it costs a minimum of around rs 1000- 2500 per

year where the insurance coverage would be 18-30 lakhs on an average.

Home insurance is not made mandatory, as it is private property. It is a policy agreement

between a policyholder and the insurance agency. It is you to decide to safeguard your

home with insurance.