For anyone who owns a home or is a homeowner, it is important to have financial security for the home as well as the family. This protection can be done by purchasing home insurance. Through home insurance, any home owner can protect his home and personal property from any damage and get coverage for the same.
In today’s article, we will discuss everything there is to know about home insurance, including types of home insurance, benefits of home insurance in India, coverage options, etc. So, let’s start the article without delay.
What is Home Insurance? | Know About Home Insurance
Home insurance is also called home owner insurance or home Hazard insurance. It is also an insurance policy, like other insurance policies, that provides financial protection to a home owner in case of damage to his home and personal assets kept in the home.
It mainly covers four types of incidents, which include loss or damage to property and contents, minor internal damage and external damage caused to the property.
When a home owner makes an insurance claim for any of these four events, the home owner gets coverage for the damage. But before taking home insurance, the home owner also has to pay the insurance premium for that insurance.
Suppose a person has got his house insured and he pays the premium for that insurance every month. Now if there is any damage to that person’s house due to storm or due to flood then that person can claim his insurance and get coverage for the damage done to his house.
The Coverage amount is based on the insurance taken by the insurer and the damage done to the house.
Coverage offered under Home Insurance Policy
Different types of insurance policies offer different coverage options such as –
- Natural calamities such as wind, hail, fire or lightning damage
- Damage to property due to theft, vandalism or riot
- Damage caused by road or rail construction
- Damage caused by collision with another heavy vehicle or aircraft
- Explosion or smoke damage
What does homeowners’ insurance not cover?
There are many damages which are not covered under home insurance. For example,
Home insurance does not cover damage caused to the home intentionally, caused by negligence, caused by war, acts of God, etc.
- Disasters like flood and earthquake are not covered in the home insurance policy with “ACTs of God”. Therefore, keep in mind that if the house reaches some extreme in the event of a disaster like flood and earthquake, then its insurance coverage will be provided to you.
- Zero maintenance or damage caused due to neglect of property is not covered
- Damage caused by termites, birds, rot, molds etc. not covered
- Home insurance cover can be obtained for fire and smoke, but smoke arising due to agriculture or due to industrial is not covered.
- If there is any damage to the property under the mandate of the law, then its cover is also not given in it.
Types of Home Insurance
There are different types of home insurance, but mainly five home insurance are more popular in India, which are as follows –
Home Structure Insurance –
This is the type of insurance that protects the interior design of the house against perils. It covers structures such as kitchen, bathroom, roof, etc.
Contents Insurance Cover–
This is an insurance under which cover can be obtained for the contents or property kept inside the house. For example, if documents are lost or electronic items are destroyed due to flood or earthquake, you can get cover for the same.
Under fire insurance, all those things are covered, which are destroyed due to fire. It provides cover for both the external and internal structures of the house and the contents of the house.
In this type of insurance, the insurer is given cover for damages caused due to theft. For example, if any jewelry or documents or any valuables of the insurer are stolen due to theft, then the insurer can make an insurance claim for the same.
Landlord Insurance –
Landlord insurance is for rented accommodation. It covers damages caused due to rent. For example, if a tenant leaves without paying the rent, the insurer can claim for the same.
Benefits of Home Insurance in India
There are several Benefits of Home Insurance in India such as –
1. Home and contents protection –
Through home insurance, you can protect your home from various risks and damages. You can reduce your home repair and replacement costs by obtaining an insurance claim if your home is damaged or destroyed.
2. Liability coverage –
Home insurance also provides you with liability coverage that can protect you from legal and financial consequences if someone is injured on your property. For example, if someone files a lawsuit against you for damage to your property, you can easily cover the legal fees and settlement costs through indemnity coverage.
3. Mortgage Requirement –
If your home is mortgaged to someone else, the lender needs to insure it so that it can make a claim against the property to protect the investment it has made.
4. Additional Living Costs –
Now if your home is damaged and you cannot live in your home during repairs. So, through the insurance policy, you can get the cover of additional living expenses like hotel stay and food.
5. Legal coverage –
Some home insurance policies also offer legal coverage to its customers, which can help cover the cost of legal fees if the insured is involved in a property related lawsuit.
So thus, home insurance provides a number of important benefits to the home owners. Therefore, the homeowner should simply choose from a variety of insurance policies that can meet his or her various needs.
How to Choose Right Home Insurance Coverage?
Choosing the right home insurance coverage can often be a daunting task for many. But there are several factors that can help you choose the right home insurance. Here we have provided information about some important factors –
Coverage Limits –
First, check whether the coverage limit of the policy is sufficient to cover the core of your home and personal property. If the coverage limits cover the value of your home and personal property, then this may be a good home insurance for you.
You should choose a home insurance which is deductible and which you can comfortably afford at the time of claim.
Ask about discounts available for home security systems, multiple policies and good credit scores.
Reputation and Customer Service –
Make sure that the place you are taking home insurance from, what kind of customer service they provide and what is the reputation of the insurance company. Therefore, it will be necessary to research the insurance company as well.
So, you can choose a right home insurance for yourself keeping all these factors in mind.
How to Claim Home Insurance?
If your home is damaged, you should file a claim with your insurance company as soon as possible. Follow these steps to file a home insurance claim:
1. Step –As soon as your house is damaged or any kind of damage occurs, you should immediately contact your insurance company and provide details about that damage. You can tell this information to your insurance company through the application.
2. Step –Now provide the evidence of damage to the insurance company, for which you should take pictures and videos of the damage.
3. Step –Now after that the insurance company will investigate the damage caused and verify how such damage has happened and for this the insurance company can also make some inquiries from the insurance holder.
4. Step –If all the documentation is done and the company verifies the damage, the insurance company sends a claim adjuster to the insured’s home to determine the amount of compensation.
5. Step –Now once the claim is approved, the insurance company releases the payment to cover the loss, which is sent to your account within working days.
Note -: In this way, the same claim insurance process is done in most companies, but some insurance companies also use different procedures, so claim insurance only after knowing the insurance process of your company.
In today’s article we know about home insurance. we Understand that home insurance is very important for our home and also a necessary investment. Through home insurance, we can protect our home from various types of damage and loss.
Hopefully, through this article, you would have got all the information related to home insurance. If you need any other information related to home insurance or want to know about any other type of insurance, then you can tell us by commenting.
Q. What is home insurance in 2 types?
Ans. The Two types of Home Insurance is Theft Insurance and Fire Insurance. In this article we told about 5 types of Home insurance.
Q. What is called home insurance?
Ans. Home insurance is also called home owner insurance or home Hazard insurance.
Q. What is the cost of home insurance in India?
Ans. There are several types of home insurance in India which comes with different overages. So thus, it would be difficult to tell how much any one home insurance costs. Because the Cost of some home insurance is ₹ 100000, then the cost of some home insurance can be even 1 crore.
Q. Which is the Best Home Insurance?
Ans. There are a variety of companies in India that provide the best home insurance to their customers. But most of the people think it better to buy home insurance through LIC, Travelers, National Wide Mutual Insurance.