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Need of Home Insurance in India

​We can all agree that one’s home is their most important and valuable asset. It’s likely the most expensive thing you own, or are likely to own, and everything that you own is generally kept in it.

As such, if some calamity occurs and you lose your home and everything in it, where would that leave you? What would you be left with? The thought is terrifying, however, it’s not a purely hypothetical one.

No one expects accidents and calamities to occur, but they’re more common than one might think. Houses can get destroyed due to negligence such as leaving the stove on, they can get destroyed due to man-made disasters such as fires and riots, and they can also get destroyed due to natural calamities like lightning and earthquakes.

Since there are so many different risk factors to your house, you should get a comprehensive home insurance policy so that you’re covered in case some travesty occurs.

Getting a home insurance policy is even more imperative in India in which natural and man-made disasters happen more frequently than in many other countries. It’s almost an annual news cycle that an unexpected earthquake has destroyed several homes in parts of India and Nepal. Landslides often destroy properties in Uttarakhand, riots have claimed lives and homes in Kashmir, and floods have submerged houses in Jammu and parts of Northeast India like Assam.

Despite the vital importance of home insurance, people seem reluctant to buy it. According to Sanjay Datta from ICICI Lombard General Insurance Co. Ltd, home insurances aren’t pushed hard enough, people aren’t aware of it, and it accounts for less than 1% of industry premium.

As a result of this lack of awareness or simple ignorance, thousands of people lose their homes every year.
If you’re still not convinced, then go through the following points on what a home insurance can protect you from:
1. Liabilities: A home insurance can protect you from financial liabilities in case a third-party residing in your property is injured during their stay. Furthermore, the insurance would also cover any arising legal costs.
2. Natural and Man-Made Disasters: A comprehensive home insurance policy provides coverage against natural disasters like lightning, floods, earthquakes, etc, and against man-made disasters such as vandalism, theft, riots, etc. Furthermore, it gives you the means to rebuild your home.
3. Temporary Living Expenses: In case your house is damaged and has to be refurbished, you can rent another house and the insurance company will cover the rent for it, up to the upper cap limit.
4. Coverage for loss of Personal Belongings: If you’ve lost valuable items like documents, clothing and jewellery in the house, the insurance company will also provide coverage for that.
5. Easier Application of House Loans: If your home is insured, you’ll find it a lot easier to get a loan from the bank. In fact, some banks list home insurance as a pre-requisite to a home loan.

These are some of the major reasons why you need to have a reliable home insurance in India.