What is home insurance?
Everyone dreams of having their own house. As they say the basic needs of life are Food, Clothing and Shelter. At the end of a day, after the hectic work life, all we do is going home. Thus, a home is a place, which provides the affection and harmony that one looks forward. Not only purchasing a house is vital but also protecting the physical goods and the equipment in the house against any loss from theft, fire etc is most important.
Home insurance is thus defined as the type of property insurance that protects your house from different kinds of hazards like accidents, damages, Natural Calamities and thefts. Every leading insurance company in India offers multiple home insurance policies. The key point lies in choosing the right plan at the right time.
Undoubtedly your house is the costliest benefit and the most valuable property for you. But due to the unexpected catastrophic devastation caused due to earthquakes and other natural calamities can completely change the entire structure of your house. The situation after devastation is completely vulnerable and the house becomes unlivable. This is where house insurance comes into the picture and thus by acquiring a house insurance policy would be a strong asset in such circumstances.
In order to choose the best house insurance policy the main key factor is to understand what house insurance is about.
Why to buy Home Insurance Plan?
- Legal Protection for the property purchased– Home insurance policies are provided with legal coverage which covers against personal injuries, property damage due to other third parties which they might have incurred while residing in the insured house. This coverage is more vital as it provides protection to you and your house from any possible legal problems.
- Provides coverage against catastrophic consequences – An inclusive home insurance policy covers your house against losses and damages caused due to natural calamities, such as earthquakes, floods, lightning, storms, typhoons, etc. This policy also covers your house from man-made hazards and its consequences. Man-made hazards include thefts, strikes, riots, other activities etc. It also makes sure to get a speedy recovery from these unexpected hazards.
- Coverage of temporary rental expenses – Suppose if the insured house has prone to some hazards and got damaged what would you do? Most of us would temporarily relocate to a new place. If you have already chosen a home insurance plan it would be a great benefit at this time because the insurance company will cover your expenses incurred for paying rent. The upper limit for this amount is set according to the policy provided by the insurer.
- Coverage for the damage to your valuable assets–Home insurance companies also offer policies to provide coverage against loss/ damage of items kept inside the insured house. These include various valuable, expensive, and important personal belongings, documents, jewelry, clothing, equipment and furniture etc. Also, some banks give preference to those customers who have the home insured. Home insurance is one of the major eligibility criteria for availing a home loan.
What are the types of Home Insurance Plans?
1. Home Structure Insurance: This type of home insurance covers the structure of your house from any kinds of damages. In addition to this, the policy also protects any permanent fixtures within the insured house. This includes your kitchen and bathroom fittings, and also the ceiling/roof of the insured house.. This type of insurance usually extends to the housing structures.
2. Public Liability Coverage: If any third parties experience damages caused or their property inside the insured’s home, then this type of home insurance policy provides coverage against the damage occurred due to third party.
3. Burglary & Theft: In case of an occurrence of burglary or theft in the insured house, if any valuable contents or precious personal belongings are stolen or damaged, the policy covers you for it.
4. Contents Insurance: It also the contents inside the house on which you can get insured. This type of home insurance policy protects the goods inside your house from damages and loss owing to theft, fire, flood and other such damages. Your documents, portable equipment, jewelry, TV, refrigerator, etc. are covered.
5. Landlords’ insurance: As a landlord, the maintenance and protection of the building/apartment/structure of the house are clearly a responsibility. Therefore a landlords’ insurance policy is ideal and it also covers things like loss of rent and public liability for the landlords.
6. Tenants’ Insurance: As a tenant you would have rented a house or flat. In that case, it is the best option because you need to focus entirely on protecting your contents. This type of insurance is a must for every tenant for their benefit.
7. Fire and Disaster Policy: As per the name definition this policy provides protection for the insured house against Fire and hazardous accidents. This policy covers the insured home against loss and damages caused due to following causes –
a. Natural calamities like lightning, fire, volcanic explosions, forest fire, earthquakes, storms, floods.
b. Damages caused due to explosion/implosion, man-made anti-social activities like strikes, riots etc.
c. Damage caused by direct contact of means of transport like bus, rail etc.
d. Damage caused due to bursting or/and overflowing of water tanks etc.
e. Subsidence including rockslide and landslide.
f. Missile testing operations.
Top 5 Best Home Insurance Plans 2018 in India
S.No: Home Insurance Companies Ranking Source 1 HDFC Ergo Home Insurance: policyx.com 2 ICICI Lombard Home Insurance: policyx.com 3 Tata AIG Home Insurance: policyx.com 4 IFFCO Tokyo General Insurance Co. Ltd. policyx.com 5 Bajaj Allianz Home Insurance: policyx.com