Buying a house is the single largest investment for most people. It is a herculean task that involves a lot of planning, saving and research. However, the fact that you can own a house without a home insurance policy makes us neglect the concept of home insurance on the whole. Most of us feel that it is a waste of money as it is a certain investment for an uncertain cause. Nevertheless, with the increase in natural calamities, it is a good idea to take up a little expense to avoid a huge financial setback in the future. Read on for a better understanding of why home insurance is a must for homeowners:
1. The protection is not just for your home
An extensive home insurance policy does not only protect your building. It covers all the components in your compound like your garage, shed, deck and even your fence. Additionally, you can also opt for add-ons in your policy and protect the contents of your house like your furniture, electronics and valuable home appliances.
2. It provides a replacement for your loss
Getting your home insured gives you financial security with the added benefit of replacing your insured belongings. Based on the home insurance policy you have opted for, you can now get your damaged goods replaced instead of merely claiming an equivalent amount of money for your loss.
3. It protects you from natural disasters
Natural disasters are every homeowner’s nightmare. Taking up the expense of repairing a damaged house is not the kind of burden you want to put yourself and your family through, especially when they are in the middle of an emotional rollercoaster. A detailed home insurance plan covers you during natural calamities like floods, landslides and earthquakes, for a minimal monthly or yearly expense.
4. It is not expensive
Though a home insurance policy might seem like an unwanted expense, the benefits provided by the scheme are much more than money can buy. For an insured amount of about Rs 40 lakh of the building, you can get a home insurance policy worth just Rs 2,000 per year. Additionally, the most comprehensive policy, which covers even the contents of the house, can be bought at an approximate value of just Rs 5,000 per year. At such nominal rates, getting your house insured is not even an expensive affair.
5. It protects you from lawsuits
Based on the type of policy you have opted for, you can protect yourself and your family from property-related lawsuits. Your home insurance will cover you during the unfortunate incident of you accidentally damaging another property, like in the case of a fire or mechanical damage. Additionally, it will also cover the medical expenses of a guest injured in your property.
6. Above all, it provides peace of mind
Getting your home insured provides you with the ultimate luxury of peace of mind. Whether you own an apartment or a villa, once you have selected your policy and paid your premium, protecting your property is no longer your responsibility.
Points to keep in mind while insuring your home:
# It is always important to maintain proof of all your insured items in order to claim them.
# Unauthorised construction cannot be claimed, so make your investment wisely.
# During the time of policy renewal, get a quote of the reconstruction cost from a contractor for extensive coverage.
# A home insurance policy is valid only for the building and its components. It does not cover the land.
# Tenants can insure the contents of the house they are living in.
With such comprehensive benefits, getting your home insured is not an option, it is a necessity.
(By Varun Manian, Chairman & MD, Radiance Realty)