Buying a home cover will help put them in a position to deal with the financial losses in the event of fire, lightning and explosion, storms, earthquake, and terrorism-led damages.
Hyderabad: Home is one of the valuable assets people invest in during their lifetime. Buying a home cover will help put them in a position to deal with the financial losses in the event of fire, lightning and explosion, storms, earthquake, and terrorism-led damages. Dilip Baba Neeronthiyil, Vice President – Non-motor Underwriting, Digit Insurance, tells Telangana Today about the importance of home insurance
Why is home insurance important?
Home insurance protects your home and your personal belongings from fire, natural calamities like flood, storms, earthquake, etc. Buying a home is one of the biggest investments an individual makes in their lifetime and is one of the most valuable assets one owns. It is important to buy adequate home insurance to provide your home an overall protection and to secure your home belongings.
Premium for a ‘building only’ cover for a house costing Rs 80 lakh can range between Rs 1,680-1,800 per year. A comprehensive cover for the same sum insured may range between Rs 2,800-3,000 per year. Varying with insurers, structures that are up to 30 years old are provided the cover instantly without any scrutiny. However, for structures that are older than 30 years, a survey of the property could sometimes be undertaken on a case to case basis before issuing the policy.
Types of home insurance available
There are typically three options available for insuring home. First is the ‘building only’ cover, which protects only the structure or physical aspect of the building. Second is the ‘content only’ cover that protects the personal belongings of your house, including household goods, appliances, etc. Third is a comprehensive cover that protects both the building as well as the contents of your house. Some insurers also offer a burglary cover. There are also products to protect electronic equipment at home.
Home insurance covers flooding as well as damage caused due to water clogging. Further, the policy pays for damages to contents if the insured has taken a comprehensive plan. A Home insurance cover also protect against damages due to fire, lightning and explosion, storms, earthquake, and terrorism-led damages. One can take an add-on to protect valuable items like jewellery.
When buying a home insurance, one should understand the exclusions of the policy. A home insurance policy typically does not cover losses due to wear and tear or overuse of electronics. Damages due to pollution, war or loss of property due to government order are also not typically covered by insurers.