Hyderabad: Home is a large and important investment. However, not many realise the importance of insuring the house against unwanted circumstances.
A home insurance policy gives the property adequate protection against numerous perils, including natural and man-made disasters. The insurance policy provides protection to both property structure and its contents.
Tarun Mathur, Chief Business Officer- General Insurance, Policybazaar.com, says that home insurance is a road less or rarely taken as it is an extremely difficult and complicated task. The premium of a home insurance is reasonably priced considering the cost of the structure and the components it insures.
A home insurance policy has two parts– structure and components. The average premium for insuring a house worth Rs 50 lakh comes to Rs 2,200-2,600 annually. However, a detailed home insurance policy covering a home worth Rs 50 lakh along with its added contents (furniture, home appliances) worth Rs 5 lakh will have an annual premium of Rs 6,500 to Rs 7,500.
“One needs to understand is that it is smart to invest in a home insurance policy and stay protected. People who think that buying a home insurance is a waste must know that an accident or calamity or damage can happen anywhere and at any time,” he says.
Home insurance policies vary with insurers. They cover the house structure and its contents from damage through fire and earthquake. Add-ons for structure insurance can also include storms, floods and inundations, riots and strike, malicious damage and terrorism.
For the content insurance, the add-ons can include burglary cover, jewellery cover, break-down, public liability, baggage, ATM withdrawals, domestic workmen compensation, loss of rent and alternative accommodation.