A house is one of the most expensive assets you will have in your entire lifetime. An average earning Indian citizen spends a good part of his savings on purchasing and furnishing his house. A house is more than just bricks and cement for us- it's a place where our heart dwells us. But, unfortunately, most people don't pay much attention when it comes to insuring their house against natural or human-made calamities. It's a normal phenomenon that a person protects his vehicle as soon as he buys one, but does not bother to secure his house.
We cannot ignore the fact that car and bikes are more susceptible to damages during a natural calamity, but that doesn't mean that a natural disaster can cause your home to damage. Nature is unpredictable, and it can be furious anywhere, anytime. The least you can do to protect you and your family from the unfortunate occurrence is by insuring the place where you live.
There are several incidences in the past years, where floods, earthquakes, and lightning have caused trouble to the humankind. You can't avert a natural calamity! But, you can definitely protect yourself against the financial repercussions of rebuilding your damaged property.
Most people think that a home insurance policy is expensive and they will have to pay heftily to protect their home. This notion is definitely false. A home insurance policy can be bought at a small premium that won't even pinch your pocket while protecting your home against several unforeseen circumstances. A home insurance policy secures the structure of your home and valuable contents against damage caused due to natural disasters and man-made perils.
In India, a home insurance policy against natural calamity doesn't come as an individual policy but is offered as a built-in coverage with a home insurance policy. Most of the plans provide natural disaster insurance coverage against lightning, flood, earthquakes, cyclones, fire, falling trees, landslides, tornadoes, and explosions. When you select a home insurance policy, it is essential that you read the fine print of the documents precisely to check the items that have been excluded and included. If you feel that certain adverse circumstances need to be incorporated, you can talk to the insurance company and get it included under the insurance coverage. Although it may increase your premium, it will give you an exhaustive coverage.
Things to keep in Mind before Buying a Home Insurance Policy-
Before you buy a home insurance policy, you must analyze whether it covers everything from your home structure to contents or not. Otherwise, you might be at a loss in case of any discrepancies.
Here are some important points to keep in mind while purchasing a home insurance policy:
Sufficient sum insured: Sum insured is the amount that an insurer pays when a claim is made, it is crucial that you should reflect the correct property value. Most people keep the sum insured equal to the market value of the house. Also, if you have expensive electronics and gadgets at home, then go for higher coverage.
Comprehensive insurance policy: Most people have home insurance together with their home loan. Most of the plans cover structure only and not the contents inside. But what would happen if there is a theft, burglary, or an electrical breakdown? A comprehensive home insurance policy is required to cover both structure and household items.
Tenure of the policy: You can either go for an annual plan or a multi-year insurance policy. While the yearly insurance policy provides you with an option to revisit the sum insurer's value every year, a long-term policy gives discounts in the form of low premium rates.