Home Insurance: Benefits, Coverage, and What You Need to Know
What is Home Insurance? Understanding Types, Benefits, and Coverage Options
You have heard about health insurance, vehicle insurance, life insurance, etc. But have you ever heard about home insurance? You might have, or you might not. But most probably, 90% of Indians don’t know about it. Today, in this blog, we will talk about what home insurance is, why it is used, and how you can opt for one.
What is a home insurance policy?
Home insurance, also called property or homeowner insurance, protects your house and belongings from unexpected events like theft, fire, or natural disasters. It covers your home, whether it’s owned, rented, or a luxury property.
Home insurance features
What does home insurance cover?
Home insurance offers protection against a wide range of potential risks. Here are the key home insurance benefits:
• Protection against damage caused by fire to your home and belongings.
• Covers damage from explosions or implosions.
• Coverage for damage caused by lightning strikes.
• Protection if your home is damaged during an earthquake.
• Covers damage from volcanic eruptions, storms, cyclones, hurricanes, tornadoes, floods, and other natural events.
• Covers damage caused by land sinking or landslides.
• Protection from damage caused by wildfires.
• Covers damage caused by vehicles, animals, or other impacts.
• Protection against damage from riots, strikes, or vandalism.
• Coverage for damage due to terrorist activities.
• Covers damage caused by overflowing or bursting water tanks.
• Protection against damage from automatic sprinkler leaks.
Additional Coverage Options:
• Covers theft occurring within 7 days of any insured event.
• Coverage for lost rental income if your property is damaged.
• Coverage for accommodation if your home is uninhabitable.
• Reimbursement for debris removal costs, up to 2% of the claim amount.
• Coverage for professional fees, up to 5% of the claim amount.
What Home Insurance does not cover?
• Damage caused by intentional or wilful acts.
• No coverage for war, civil war, or related events.
• Excludes damage from radiation, nuclear contamination, or nuclear waste.
• Loss from short circuits, arcing, or electrical malfunctions.
• Excludes bullion, precious stones, manuscripts, and similar items.
• No coverage for mislaid or unidentifiable missing items.
• No coverage for property moved outside your home.
• Excludes loss of earnings, delays, or market-related damages.
• No coverage for reduced market value after repair.
• Excludes home extensions that increase carpet area by more than 10%.
• No coverage for improvements over 10% of original sum insured.
• No coverage for costs to prepare or file a claim.
Home Insurance tenure
There is no fixed home insurance tenure; you can get a policy with a tenure as low as 1 year and it can go up to 10 years in most cases.
How to apply for a home insurance in India?
To apply for home insurance in India, you have to approach insurance companies that provide home insurance, such as:
• Bajaj Allianz Home Insurance
• Cholamandalam Home Insurance
• Digit Home Insurance
• HDFC ERGO Home Insurance
• ICICI Lombard Home Insurance
• IFFCO Tokio Home Insurance
You can access their packages online, along with all the details, including how much coverage your home can avail within the policy.
Why should you choose home insurance in India?
House insurance is crucial because it protects your home from damage or loss. For example, if a tree falls on your roof or a car hits your boundary wall, the right insurance will cover the cost of repairs. If you plan to take a loan to buy or build a house, the bank will require proof that the property is insured.
Another important reason is liability coverage. If someone gets injured on your property, home insurance will protect you from legal and third-party claims. It also covers repairs if your property gets damaged. Depending on the plan, it can cover your appliances, like air conditioners, refrigerators, and even jewelry.
Final Words
With the right insurance, you’re also covered when you're away from home. If your property needs repairs, the insurance will cover the costs and may provide you with temporary accommodation. Additionally, it protects against theft or robbery.
Most importantly, house insurance gives you peace of mind, knowing you won’t face unexpected financial burdens if something goes wrong.
Disclaimer: This content is written for general purposes and does not endorse any paid promotion. It may contain information that could vary, so it is always advisable to read all the terms and conditions of the insurance package you are opting for. Commercial Noida does not hold any liability for the content written here, as it is a result of research and information gathered. Always confirm with your own sources before committing to anything.
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