Home-Insurance
House provides shelter for living, and it is built upon the emotions and the efforts of the people residing in the house. Coming back to your house gives you a mental peace and warmth after a day's hard work. However, your home might be threatened with damages caused by natural and man-made calamities. Home is an asset, and you must secure it from any threat or damages. Home Insurance is a type of property insurance aimed to protect a home and its contents against damages. A Home Insurance policy provides financial protection in case of any damage happens to your home. A disaster may ruin your house, just buy a Home Insurance and get a cover for your home against losses/damages.
Why should I Buy Home Insurance?
Any damage to your home could depress you both emotionally and financially, and that′s why you should seek cover to insure your home. Listed below are the top reasons to buy Home Insurance.
Protection from Natural Calamities Nepal Earthquake and floods in southern part of India in the year 2015 took many lives; many homes were shattered and destroyed accounting it to an enormous financial loss.With a home insurance plan, you can keep your home protected against all types of ′Natural disasters' such as earthquakes, cyclones, landslides, floods, and typhoons.
Protection from Man Made Risks Despite installing security equipment and safety gadgets, man-made threats such as robberies, riots, strikes, thefts, and terrorism may pose the potential risks to your home. Although every insurer may not offer inbuilt protection against such events, you can ask them to cover against these damages as well.
Safeguard Your Home and its contents Whether you are living in a housing society or renting your apartment, it would be a wise decision to get your home insured. Buying a home insurance also protects your home against fire and burglaries. Moreover, it also covers your personal ′possessions' inside your homes such as Household appliances, jewelry, a piece of art, paintings and other valuables.
There are other structures that are a part of your home, but not attached to your homes such as a garage or shed. By choosing the right home insurance plan, these parts of your home can also be insured. Thus, by buying a home insurance plan, your home, and its contents are completely secured.
Covers Third Party Liability A disastrous event may occur when a third party stays or visits your home. Few home insurance plans also offer the third party liability benefit that protects you against the legal liability that may arise due to damage or bodily injury to the third party.
Assured Peace of Mind Any damage or loss occurring to your house or contents in it, will prove disastrous. But with home insurance you have a financial assistance to deal with and an assured peace of mind in such scenarios.
Who can buy Home Insurance Policy?
What kinds of Home Insurance Plans can I opt from?
Following are the three most common types of Home Insurance Plans, you can choose from. The perils covered under the plans may vary from insurer to insurer.
1. Building Insurance This type of home insurance policy provides insurance cover to any the home structure or building against damage because of the man made purposes or natural calamities to the amount of providing claim for the full value of reconstruction in case of complete destruction or as per the defined terms and conditions in the policy.
2. Content Insurance This type of home insurance policy covers the contents of the house as they also hold a high value and any loss of such contents may result in a high financial loss. Content insurance pays for damage or loss of personal possessions located within the home. With contents insurance, the goods inside your house are covered against loss and damage caused by fire, flood, theft, or other perils mentioned in the policy. Contents may include important documents, jewelry, refrigerator, TV, piece of art, etc. are covered under this home insurance policy.
3. Building + Content Insurance This is a comprehensive kind of home insurance policy which will provide protection against any damage which happens to the structure of home and also the valuable contents of your house.This kind of insurance cover provides a total protection to your home and will be a foolproof arrangement by providing financial assistance in terms of claim for any loss or damage due to the covered perils in your home insurance policy.
What are the Benefits of Buying a Home Insurance ?
Benefits under the home insurance policy is based on what you want your home insurance policy to cover for you. The home insurance policy with many insurers can be custom fit to the needs.The basic coverage which is provided under the home insurance is as follows
Fire and Allied Perils Cover
The home insurance policy covers man made and natural calamities under standard fire and special perils policy. Following are the perils covered under the standard fire and special perils policy
How is my Home Insurance Premium Calculated?
Following are the key factors that help compute the premium amount for home insurance.
Coverage While buying a home insurance, it needs to ensure whether you will insure the house structure, its contents, or both. If you insure both the structure of your home and its contents, you will be charged with the high premium amount.The more the scope of coverage, the higher is the premium.
Age of Property Old homes are more susceptible to damage due to the wear and tear. Thus, old constructed houses attract the higher premium amount for a home insurance policy, whereas newly build properties are enhanced with several home protection measures will have lower premiums comparatively.
Property Dimensions The cost of reconstruction will probably be more for a larger property, and so the cost of the reconstruction element goes up in home insurance. The higher cost of reconstruction also tends to increase the premium amount.
Location of Property Location of your to be insured home is nestled at a high risk prone area for natural or man-made calamities, your insurer will charge the premiums at a higher rate.
Value of Contents
The number of valuable items or contents you want to get it insured will attract higher premiums as the the sum at risk for the insurer will increase, and the insurer will cover the higher risk at an elevated premium amount.
Security Systems
Enabling high quality locks, smoke detectors, fire alarms, and burglar alarm will ensure more security of your home, so there are lesser chances of loss/damage to your property. Your insurer will then charge the premium amount at a lower rate.
Add-on Covers
If you opt for add-on covers such as cover for valuables, third-party liability cover, loss of rent, and burglary cover, it simply enhances protection for your home. Choosing add-on covers also attract additional premium amount as the scope of coverage is enhanced by opting for riders/add ons.
Voluntary Excess
Voluntary excess in the amount of loss which the policyholder accepts to bear in case of a claim. It is the amount that policyholder pays towards a claim from his/her pocket. If you choose a higher voluntary excess, your insurer will charge lower premiums as part of the claim is shared between the policyholder and the insurer on the predefined amount or percentage.