Home insurance provides you coverage against risk of destruction of house due to burglary, riot, fire, earthquake and various other man-made and natural calamities. Type of your home insurance policy provides coverage for structure of the house as well as its content. That implies, you can buy coverage for the structure and/or content of house.
Reasons to Buy Best Home Insurance Policy
• To avail security against destruction in case of man-made and natural calamities
• To avail discount on other kinds of general insurance
• To avail peace of mind for a specific term
You can buy home insurance policy for a specific term say 1, 3, 4 or 5 years. During the period your home insurance policy is active, you get protection not just for structure but for valuable content like important documents also. Type of your home insurance policy determines the level of your coverage. You can opt for protection against theft and snatching as well.
Here is what your home insurance policy covers:
• Fire, lightning, explosion
• Aircraft damage
• Riot or terrorism
• Bursting/overflowing of water tanks/pipes
• Natural calamity like storm, typhoon, cyclone, tornado, flood, tempest etc
• Earthquake or volcanic eruption
• Damage due to railway lines or roadways
• Burglary and housebreaking
• Subsidence and landslide
• Missile testing operations
• Bush fire
When you want to determine the sum insured for your policy, determine the amount by adding value of structure and household contents. To determine the value of structure consider the reconstruction cost and not market value of house. To determine value of contents, combine their value into broad categories such as electronics, utensils, furniture etc. and insure them at their market value i.e. the value at which you can buy the similar item minus depreciation.
Benefits of Home Insurance Policy in India
• Peace of mind for a specific term
• Coverage against risk to structure of home from various man-made and natural calamities
• Coverage against risk to contents of home against calamities, burglary, theft and larceny
• Optional coverage against destruction due to terrorism
• Optional coverage against additional expenses made on alternative accommodation.
• Coverage against liability towards third-party
• Compensation in case of personal accident of a family member
• Extended coverage to silver articles, jewellery and other valuable items that is kept in safe
• Ease in availing home loan