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Five reasons why home insurance is a must

Sulagna D
·2-min read

Buying a home is one of the biggest and most important decisions any individual will take in their lifetime. It’s the necessary shelter one needs to provide security and safety to their loved ones. Most home owners go through the hassles of building a safe and beautiful home, paying off loans, and investing in upkeep. Unfortunately, they tend to forget about insuring their house and only insure themselves after suffering a loss.

In India, only 30% of home owners have home insurance and there is a dismal 1% penetration of home Insurance versus the 90-97% penetration in countries like the UK, US and France.

Most of India’s landmass, approximately 60% of the subcontinent, is prone to natural calamities like floods and earthquakes. Thus, it is of utmost importance that home owners invest in home insurance. Home insurance covers your home against natural disasters and protects you in case of a financial crisis.

Here are five reasons why home insurance is a must:

1. Coverage Against Fire and Theft

Fires are relatively common and are capable of not only destroying homes but threatening the lives of your loved ones. Many home insurance policies provide extensive coverage against this disaster and save you a considerable amount of money. Besides fires, theft is also covered for stolen goods or damaged items.

2. Coverage of Temporary Living Expenditure

Homes can incur severe damage that will require immediate construction and will not be habitable. In such instances, families will be required to move out into another apartment temporarily. Home insurance eliminates the burden of renting another house while the original apartment is under construction and covers the rent based on the upper cap decided by the insurer and the insured.

3. Protection from Lawsuits

Certain insurance policies also protect against property-related lawsuits. This includes accidental damages to other properties caused by the insured as well as medical costs if any. For example, if a cylinder blast affects your neighbour’s property, you will be covered against such public liabilities.

4. Protection of Possessions

One’s possessions is as crucial as the home. Thus, every comprehensive insurance policy covers the damage of possessions like electronics, jewellery, furniture, etc.

5. Cost-effective

Home insurance policies provide various covers to choose from with flexible rates. Based on the kind of add-on covers you opt for, home insurance costs anywhere around INR 2000 to 5000 a year.

Considering the many benefits home insurance can provide for you and your family at such economical rates, it is an investment to make if you have not already. It is a safety-blanket that will ensure your security as well as peace of mind.

Also read: What is the reason behind rising fuel Prices in India?

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