What Is Home Insurance? And It’s Types

It is everyone’s dream to have a good home of their own. But have you ever thought that after getting a good house, it is also necessary to protect the good house.

Yes , it is not enough just to have a nice and beautiful house , but protecting the house is even more important than that. You must be wondering how to protect the house.

No matter how hard you try, you can hardly keep your home safe. Because there are many such incidents which are not under human control. Or say that these events are unexpected . For example , earthquakes, landslides , floods, cyclones, etc., these events are natural. But apart from these there are other incidents which can be done by any human being like-Theft/burglary, riot, terrorism, arson, sabotage etc. It can be difficult to save the house from all these incidents. But you can cover the loss caused by these incidents by taking home insurance . In fact, home insurance provides financial assistance to you to recover from the loss arising out of these incidents.

What Is Home Insurance?

Many incidents can damage your home. Like earthquake, landslide, flood, cyclone etc. These are some of the natural calamities that are always likely. But there are some incidents which are carried out by a person such as theft, dacoity, terrorism, arson, riot etc. The objective of home insurance is to make the loss of the house as before by providing financial assistance due to these incidents . It is up to the person taking home insurance that the value of the sum assured (Sum Assured ) he wants to keep. If you choose a higher sum assured , the premium also has to be paid higher.

What are the types of home insurance

In general, home insurance can be of three types-

Structure Value Insurance

In this, you buy insurance only to protect the structure (wall, floor, tile etc.) of your house . In this, you cannot cover much things other than the structure of your house .

Comprehensive Home Insurance

Comprehensive Home Insurance covers the structure of your house as well as the valuables kept inside the house. Due to any unforeseen event, the house and the goods present in the house are also covered in this insurance. Such as furniture, electronic appliances, jewelery etc. You can also do some add ons with it.

Content Home Insurance Only

In this, the structure of the house is not insured , but the items inside the house are insured. This type of home insurance policy is mostly bought by the renters .

What is covered in home insurance

Before buying home insurance, you should know what eventual loss you can cover in home insurance.

Fire damage

Home insurance also covers loss due to fire caused by an incident. Fire causes a lot of damage to the house, so home insurance must cover the loss due to fire.

Earthquake / landslide

Earthquakes are such a disaster, the possibility of which is always there. Disasters like earthquakes and landslides can cause a lot of damage . Home insurance covers all these calamities .

Flood / cyclone

Flood-like situation is also created due to excessive rainfall during the monsoon season . Which can cause a lot of damage . Home insurance also covers damages caused by floods .

Theft / burglary

Theft and burglary also cannot be ruled out. It can also cause a lot of damage. If expensive jewelry and valuables are stolen, a lot of loss can be incurred. Therefore, even such incidents are covered by home insurance.

Riots or terrorist incidents

Your house may get damaged due to riots or terrorist incidents. Losses due to such incidents can also be covered in a home insurance policy .

Electronic equipment

Electronic equipment such as laptops, LCD screens, refrigerators, etc. can also be covered under home insurance.

Apartment rent

If your house is damaged due to any reason, which you live in a rented house during the reconstruction, then its rent is also covered in the policy .

For which house insurance can be taken

Before buying a home insurance policy , you should know what home insurance can be taken for. Home insurance can be bought for any apartment , flat, private house or even a rented house .

Insuring your home

As the owner of the house, you definitely have to worry about keeping the structure of the house safe. You can also insure the structure of your house and the things inside the house. This type of home insurance is called Comprehensive Home Insurance .

Rental home insurance

While living in a rented house, even if the house is not yours, but the goods kept inside the house will be yours. Like furniture, electronic appliances, jewelery etc., all these things can also be very expensive . Therefore, home insurance can be done to protect such valuables .

How much premium has to be paid for home insurance

Premium for home insurance depends on many factors, Like:

  • How much sum assured is your home insurance. In case of higher sum assured, the premium also has to be paid more.
  • Which home insurance plan are you taking?
  • Which add-ons do you want to include with your home insurance plan?
  • How is your house in the area like if incidents like riots, theft, terrorism occur more in your area then you may have to pay higher premium of home insurance.
  • Geographical location also Home Insurance affect the premium. In the area where there is a possibility of more damage due to geographical location, then in such a situation, a higher premium has to be paid. As landslides are more prone to landslides in most hilly areas and floods are more likely to occur in areas without dams, then home insurance premiums can be high in such areas.
  • Most of the terrorist incidents happen in the border areas, so the premium for home insurance has to be paid in such areas too.
  • If there is good security equipment in the house, then the premium has to be paid less, if there is no security device in the house then the premium amount is high.
  • The amount of valuables in your house also affects the premium. Home insurance for expensive goods The premiums on cover are also higher.
    On an average, if you choose a sum assured of 30 to 40 lakhs , you will have to deposit a premium of about 5 to 6 thousand rupees.

Benefits of Home Insurance

There are many benefits to having home insurance. Which you should know about:

  • You are relieved of any unforeseen event
  • Home insurance cover provides you protection
  • Financial help is provided to recover from the loss caused
  • By any unforeseen event.
  • Provides safe home as well as valuables
  • If there is any damage to the structure of the house, during which you live somewhere else, then its rent is also covered in home insurance

Requirements for a home insurance claim

Many people consider insurance claims very difficult. But claiming insurance is not that difficult. You just need to be well aware of its process. You should keep some things in mind in case of any event like:

  • In case of any unforeseen event, the insurance company should be informed first.
  • Whenever any such activities happen in your home, the damage caused by which is covered by home insurance, then you must take a video or photo of it.
  • Keep evidence that pertains to the event you wish to claim.
  • You should not do any carelessness intentionally , doing so may make it difficult for you to get a claim.
  • While buying insurance, the insurance company must also know about the claim process.
  • How much premium has to be paid for home Insurance
  • How much will be the premium for home insurance depends on many factors . Like-
  • How much sum assured is your home insurance. In case of higher sum assured, the premium also has to be paid more.
  • Which home insurance plan are you taking?
  • Which add-ons do you want to include with your home insurance plan?
  • How is your house in the area like if incidents like riots, theft, terrorism occur more in your area then you may have to pay higher premium of home insurance.
  • Geographical location also Home Insurance affect the premium. In the area where there is a possibility of more damage due to geographical location, then in such a situation, a higher premium has to be paid. As landslides are more prone to landslides in most hilly areas and floods are more likely to occur in areas without dams, then home insurance premiums can be high in such areas.
  • Most of the terrorist incidents happen in the border areas, so the premium for home insurance has to be paid in such areas too.
  • If there is good security equipment in the house, then the premium has to be paid less, if there is no security device in the house then the premium amount is high.
  • The amount of valuables in your house also affects the premium. Home insurance for expensive goods The premiums on cover are also higher.
    On an average, if you choose a sum assured of 30 to 40 lakhs , you will have to deposit a premium of about 5 to 6 thousand rupees.

Home insurance companies

  • SBI General Home Insurance
  • Cholamandalam Home Insurance
  • Bharti AXA Home Insurance
  • Bajaj Allianz Home Insurance
  • IFFCO Tokio Home Insurance
  • National Insurance Home Insurance
  • New India Assurance Home Insurance
  • Oriental Home Insurance
  • Reliance Home Insurance
  • Royal Sundaram Home Insurance

Apart from these There are many other companies that provide home insurance . Home insurance is not legally required in India. That’s why people in India are not much interested in getting home insurance. Well, home insurance in India is not very expensive . Therefore, if you want, you can keep your home and belongings safe by insuring your home.

Conclusion:

Hope you have found useful information about Home Insurance . Like what is home insurance, on what factors the premium of home insurance depends, benefits of home insurance and what should be kept in mind while taking home insurance. If you liked this post and the information given in it is useful for you, then do not forget to share it.

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