Is it necessary to have home insurance in India?
Buying a home is the sole substantial investment for most individuals who have started earning and are now willing to take their lives ahead over to the next step. However, the unfortunate fact that one can own a residence without an enforced home insurance policy makes one neglect the importance of home insurance altogether. It may not seem crucial by the look of it but in-depth it is one the most key things that would protect one’s house from various perils.
Home insurance policy allows you to put part of your money aside in the form of policy premiums in the pursuit of saving you from an uncertain event that the future beholds. This plan shields the insured against damages caused to the house or belongings within it. The policy ensures financial protection from various catastrophes that can cause losses to the assets in the house and other liabilities. In the occurrence of an unfortunate/unpredictable event, home insurance policy acts as a savior against the losses incurred during the mishap.
Why home insurance?
Since home insurance is not a mandate purchase whilst buying a house it is often regarded as optional, not important, or not so useful. That is one of the biggest delusions one can have but it is justified by the masses because it is about investing towards an uncertain cause that may or may not happen. However, it has only begun to become prominent since the rise of natural or man-made calamities in today’s times. The huge losses caused to the lives of the people and houses in the events of Karnataka floods, Cyclone Fani, Kerela floods and Bihar floods are some of the most destructive examples of occurrence of natural calamities in the year 2019 that has put dwellers under loads of financial and mental stress. Home insurance is crucial because it guards one’s home against:
• Natural Disasters
• Riot, strike and other malicious damage
• Burglary or theft of jewelry and ornaments
• Fire, etc
Home insurance usually comes with add-ons that not only protects the home but also additional assets or liabilities in it like furniture, electronics, or any other valuable appliances. It can provide financial security with the appended advantage of replacing your covered assets. Depending upon the home insurance one has opted for, one can get damaged goods replaced instead of merely claiming an equivalent amount. It may safeguard an individual from the financial and emotional breakdown that occurs after a natural disaster worrying about the potential expenses that would be involved in repairing the house.
Home insurance is also highly recommended because it isn’t as expensive as the myth associated with it portrays. It tends to seem like an undesired expenditure, but the benefits provided by the scheme are handsome. For an insured amount of about Rs 40 lakh, one can easily get a home insurance policy with a premium of Rs 2,000 per year (approx). Additionally, the most comprehensive policy, which covers even the belongings as well can be bought at an estimated price of Rs 5,000 per year.
Based on the selected policy, home insurance plans are also understood to protect one from lawsuits. In a nutshell, it is not just about insuring your home but also an ideal pick for one’s peace of mind.
Reasons why home insurance in India is necessary:
Protection against natural/manmade perils
Calamities or unforeseen situations don’t come knocking the door; these events are highly unpredictable and occur to anyone, at point of time. These calamities behold the potential to ruin one’s livelihood and a person’s lifelong investment. In such scenarios, home insurance policy steps up and covers one’s home from numerous natural or manmade perils such as fire, lightning, storm, cyclone, typhoon, aircraft collision, floods, riot, strikes and malicious damage, subsidence and landslide/rockslide.
Home insurance policies are beneficial either way. It can help one cover losses along with an option to get the damaged goods or objects replaced thereby not having to make the purchase again with an equivalent amount that is often received as the claim or redemption. Home Insurance plan has a variety of features and benefits. Some of them are:
Extended Cover Scheme: It ensures that one’s house, all the assets, and liabilities are protected from almost all the types of catastrophes that will result in destruction to property.
Temporary living expenses: If a catastrophe is mortifying enough to make a house uninhabitable then upon the policies chosen one may obtain some monetary benefits that would help obtain a temporary residence until the damaged property is repaired/rebuilt.
Adaptability in cover options: Some insurance policies allow individuals to choose the perils from the available options taking their geographical location, weather, political scenarios, etc into account and customize the services as per their needs.
Home Insurance grants cover not only to the house, its belongings but also to some additional structure that would fall within the premises of your house. Some of them include a fence or a boundary, a small outhouse, a separated garage and a swimming pool.
Protection from lawsuit
A lawsuit can be the most unprecedented threat that can ever exist however it comes with an ability to cause humongous damages and emotional turmoil. Depending upon the policy one has opted for, it can safeguard an individual from property-related lawsuits. Selective policies may provide a cover during the unfortunate incident of one accidentally damaging another property in the close neighborhood. Additionally, it will also cover the medical expenditures of a guest injured in one’s property which has the potential to bring up a lawsuit.
Home Insurance plan is designed for the betterment of the people and hence the precedence goes to making it as affordable as possible. It is indisputable that this will always be treated as an additional cost and it should be crafted out well to penetrate further into people’s minds and make this a standard purchase in the society. Further to build upon that, home insurances are usually cheaper, easy to opt and hassle-free. They have an annual premium which is less than 1% of the property cost or the potential damage and are easily affordable. An individual opting for home insurance can also enjoy benefits whilst doing taxes, another lucrative alternative to encourage more people to opt for one.
Offers you peace of mind
A home is every individual’s dream and one of the most valuable investments of a lifetime. Getting the house insured bestows with the ultimate luxury i.e. peace of mind. Whether it is an apartment, a villa or a penthouse it is a place to dwell and one of the basic necessities of human beings. Even if uncertain it allows one to be rest assured that come what may, the roof above the head and everything underneath it is secure.