There are many banks and financial institutions in India, which are offering home loans. In this, everyone has their own special benefits and features, which cater to different financial needs. With this, nowadays banks and lending companies need property insurance. Talking about home insurance, there are many things besides premium installments and duration.
Our house is one of the most valuable assets. Like securing your life and health with insurance, it is very important to get home insurance to protect the house.
Home insurance is an important part of the life of the homeowner. It acts as a protection cover which not only protects your home but also protects your personal things from any possible damage which may be caused by any human or due to natural causes.
It is important to get the right cover for your assets and our house is one of the most valuable assets. It reduces financial stress in case of a bad accident due to home insurance. With the help of a strong home insurance plan, you can protect yourself for most natural disasters like earthquakes, hurricanes, floods, landslides etc. With this, cover is also available on fire, explosion etc.
Cover in home insurance
In general, the home insurance policy covers these things:
- Structure of the house – In the home insurance policy, payment is made to repair or rebuild the house in case of loss due to any event which is covered under the policy. While purchasing insurance for the structure of the house, a person should think about taking adequate cover to build it.
- Personal belongings – Your furniture, clothing, household items are covered in case of ruin due to fire or theft or any other disaster. Expensive goods such as jewellery, art etc. are also covered to some extent. In India, the home policy is a package policy in which there are a number of sections which give many covers. In a comprehensive home policy, the cover is also available on fire, riots, theft, damage to household goods and domestic accident. Under the home insurance package, you can claim for a personal accident. With this you can take payment for partial or permanent disability due to accident.
How to choose the right insurance
These things should be kept in mind when choosing a home insurance
- The first is to find out about the performance and reputation of the insurance company about its service. If the company’s track record is not good, then it is suggested not to take the risk of taking home insurance from such company.
- It is also important to find out what the company is offering under home insurance. The person should see in the policy the coverage for personal belongings such as jewellery, clothes, appliances etc. and the provision of claim settlement, documents etc.
- Take insurance according to the value of rebuilding the house. You don’t see how much you paid to buy it. It may take more money to rebuild the house.
(By: Rajive Kumaraswamy, MD & CEO of Magma HDI General Insurance)
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