Buying a home is one of the most significant purchases in an individual’s life. It needs a huge amount, and it impacts your financial status, quality of life, etc. It is not a decision to be made abruptly as it needs a lot of research, planning, and savings. A lot of people buy a house without home insurance in India and thus end up neglecting the benefits of home insurance. Aside from reducing your possible financial setback in future, it can benefit you in many other ways as well.
It is crucial to understand what house insurance is in order to know its importance. To put it in simple words, home insurance is a special type of property insurance that covers a home against various dangers such as accidents, thefts, and peril damages. It is more like a term contract as you can choose to purchase the home insurance plan for a specified tenure, and it can be effective only for that time period. In order to get coverage under a comprehensive home insurance policy, you must pay the premiums timely.
There are various insurance companies that offer different home insurance plans such as landlords’ insurance, tenants’ insurance, buildings insurance, etc. Almost all types of damages and losses are covered under a standard home insurance plan. Some plans charge an extra premium for coverage provided against natural calamities such as floods and earthquakes.
Here are some reasons how home insurance can benefit you:
- Protects more than your home – An extensive home loan policy will not just protect your property but also cover various components in your premises like shed, garage, deck, and fence. Adding to this, you can opt for additional features offered on the policy and protect the components of your house like furniture, electronics, and valuable home appliances.
- Provides a replacement for losses – Purchasing home insurance offers you financial security along with the added benefit of replacing the insured belongings. Depending on the home insurance plan you choose, you can get your damaged goods replaced instead of just claiming an equivalent amount for your loss.
- Protects against natural disaster – Every homeowner has a fear of natural calamities damaging their home. Repairing the damages caused by a natural disaster to your home can be very expensive. A comprehensive home insurance plan will cover you against such natural calamities and that too for a minimal monthly expense.
- Value for your money – At the beginning, you might underestimate the benefits of home insurance as your home is in good condition but over the time home insurance proves to provide more value to your money. You can also add extra features depending on the threats to your property at a nominal cost.
There are many more benefits that home insurance can offer as per the plan you choose. But the major benefit of opting for home insurance is that it provides you with peace of mind as you know your property is protected against damage expenses. Remember a home insurance policy covers property and its component and not the land.