Know the importance of Home insurance for property owners

When investing in your most treasured asset i.e. your dream home why not give a thought to Home insurance? Considered as one of the best options, a home insurance saves an individual’s house from unforeseen circumstances. In India, almost all the leading banks and financial institutions offer comprehensive insurance policies. So, scroll down and read the benefits and importance of home insurance:

Home insurance for property owners

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What is Home Insurance?

A Home insurance is a unique type of property insurance that covers your house with different kinds of mishappenings like accidents, natural disasters, thefts etc. A person can choose to buy a home insurance plan for a specified tenure that will be effective for a particular time only. Once the required period is over, a person has to renew the insurance policy just like any other life insurance policy. In order to get it covered under earthquake damage, a person may have to pay extra.

Types of Home insurance

Structure Insurance

A structure home insurance is based on the area of the house and the approximate construction cost. It covers losses due to structural damages.  This type of cover is useful for both homeowners (living in the house) and builders who are renting out the building to a tenant for the residential or commercial purpose.

Content Insurance

This type of home insurance policy covers losses due to damage of contents within a home like appliances, furniture, and jewellery among others. It is important for a homeowner to remember that the valuation of all insured items should be disclosed to the banks or financial institutions, through bills and invoices. However, tenants can just opt for cover for just the contents.

Benefits of having a Home insurance policy

  • It provides liability coverage which covers a person against personal injuries, property damage to guests and other third parties which they might have incurred while residing in the insured house.

  • A home insurance also covers the expenses of your rental accommodation while you are rebuilding or renovating your house.

  • Some banks give preference to those loan borrowers who have their home already insured. In fact for certain financiers, home insurance is one of the major eligibility criteria for availing a home loan.

Things to keep in mind while asking for a claim

  • So once you have taken the insurance, there are several important things which an individual has to keep in mind while asking for a claim. For example-At the time of a claim the insurer will check all the damaged goods and inspects them thoroughly. Therefore the person must ensure that they have made the right declaration and must have sufficient proof.

  • According to an insurance agency, “Insurer can refuse a claim in case of subsidence building or poorly maintained building or unauthorized construction.”

So get your dream home insured today and give your family a secured future.