Buying home cover will help them deal with financial losses in case of damage caused by fire, lightning and explosion, storm, earthquake and terrorism.
Published date – 14 September 2022, 08:22 pm
Hyderabad: Home is one of the valuable assets that people invest in during their lifetime. Buying home cover will help them deal with financial losses in case of damage caused by fire, lightning and explosion, storm, earthquake and terrorism. Dilip Baba Neeronthiyil, Vice President – Non-Motor Underwriting, Digit Insurance, explains Telangana Today About the importance of home insurance
Why is home insurance important?
Home insurance protects your home and your personal belongings against natural calamities like fire, flood, storm, earthquake, etc. Buying a home is one of the largest investments a person makes in his or her lifetime and is one of the most valuable assets. It is important to purchase adequate home insurance to provide overall protection to your home and keep your home contents safe.
Cost
The premium for ‘building only’ cover for a house costing Rs 80 lakh can range between Rs 1,680-1,800 per year. A comprehensive cover for the same sum insured could cost between Rs 2,800-3,000 per year. According to insurers, structures up to 30 years old are provided instant cover without any verification. However, for structures older than 30 years, the property may sometimes be surveyed on a case-by-case basis before issuing the policy.
Types of home insurance available
There are generally three options available for home insurance. The first is ‘building only’ cover, which protects only the structure or physical aspect of the building. The second is a ‘Contents Only’ cover which protects personal belongings in your home, including household items, appliances etc. The third is a comprehensive cover that protects both the building as well as the contents of your home. Some insurers also provide theft cover. There are also products to protect electronic devices at home.
loss covered
Home insurance covers damage caused due to flood as well as water logging. Additionally, the policy pays for contents damage if the insured has taken a comprehensive plan. Home insurance cover also protects against damage caused by fire, lightning and explosion, storm, earthquake and terrorism. One can also avail add-ons to protect valuable items like jewellery.
Disfellowship
When purchasing home insurance, one must understand the exclusions of the policy. Home insurance policies generally do not cover damage caused by wear and tear or overuse of electronics. Damage caused by damage to property due to pollution, war or government order is also not usually covered by insurers.