Owning a home is a dream cherished by most individuals, people strive hard to fulfil this dream, some avail of home loans with hefty interest rates while some invest their hard-earned money of a lifetime. But what many don’t realize is that the task doesn’t end here. One of the most crucial steps toward owning a home occurs post the purchase, and it is —getting the home insured.
Despite its million benefits, home insurance is not given the due share of importance in India. In this article, we will discuss why home insurance is imperative, and how it protects the property and benefits the owners.
In laypersons’ terms, Home insurance is a way to ensure that the much-treasured abode is safe from all sorts of risks and hazards and the money that went into buying it, is well-secured.
There are an array of home-insurance policies for people to choose from. Each of these policies includes a series of benefits for the home as well as the owners. Primarily, home insurance policies include protection against any destruction of the property, be it the damage from natural calamities like flood, forest fire, volcano eruption, lightning, landslides etc or man-made causes like burglary, robbery, theft, riot or explosions. Some insurance policies also cover the valuable possessions inside the house, so in case of theft, the owner is subjected to financial aid in place of the lost items.
Similarly, home insurance policies also provide financial protection if the house collapses in natural calamities. In such situations, the owner is bound to get payback for all the expense that goes into the maintenance work.
In India, most banks and financial agencies also have a varied range of customized policies depending on the need of the consumers and their property type. Moreover, they also have a provision to offer assistance to the consumers and help them in deciding what kind of policy may best suit them.
The most widespread home insurance policy in India is the Standard Fire and Special Perils Policy, it provides protection for the structure of the house in case of fire outbreaks and Natural hazards. The policy also covers damages due to explosion/implosion, riots and the damages caused due to bursting or overflowing water tanks, pipes and apparatus.
This kind of policy can be bought by the owner or even the tenants if they plan to live in a house for an extended duration.
Then there are specific policies depending on the necessity of the property, for example, the houses in coastal areas require protection against the humid air because it causes rampant rusting and frequent issues with electronic items in the house. So, people can have their own share of research and analysis to ascertain the best kind of policy as per their needs.
In India, the general perception is against buying a home insurance policy because most people consider it a wastage of money. It is perceived as a certain expenditure for an uncertain cause’, but they fail to understand that by spending a small amount of money regularly, they can avert huge financial setbacks in case of an unfortunate mishap.
According to some new policies the owners can even choose to replace the insured items instead of getting the money equivalent to their price, further subtracting the hassles of going to the market and buying new items.
Home insurance provides financial security and above all mental peace. So, irrespective or what you own—an apartment, a house or a bungalow, home insurance is definitely the way ahead.
Written By Anoop Kumar Bhargava, CEO and Director Empire Centrum (Views Are Personal)