How home insurance policy can protect you from theft and accidents?
How many of us know how important home insurance is? Have you ever imagined if there is theft at our house and we lost precious jewellery or someone has broken into the house and your house got damaged? We would discuss about how important is home insurance and how home insurance policy can protect you from theft and accidents.
What is home insurance?
Home insurance or property insurance is an insurance policy where it protects the insurer’s property. It provides peace of mind when some one goes on vacation as they need not worry about any theft or damages caused to the house by any one.
How insurance amount is computed?
- The insurance amount is generally computed based on the total sq. feet multiplied by rate of construction. E.g. if the house is 1,000 sft and rate of construction is Rs 1,500, the insurance amount would be Rs 15,00,000.
- Additionally it contains the insurance for the contents of the house. The contents include electrical equipments, jewellery, furniture etc. all of them would be valued at market price less depreciation.
- It covers the damages caused to the house.
- It covers the gas leakage or fire accident
- It covers against natural calamities. A great relief is when there is natural calamity and a person need to relocate, all expenses for relocation + additional rent would be paid under this insurance policy.
But as and when you keep on adding any of these components, the home insurance policy premium keeps increasing. You should not regret at later point of time that a particular item is not covered as your ultimate goal is to safeguard your property.
What are exclusions of home insurance?
- Any loss or damage caused by insurer or insured person directly or indirectly to the house or its contents.
- Any loss of live stock, any documents, any credit or ATM cards, money etc.
- Any loss or damage to any property which is illegally acquired, kept which is subject to forfeiture.
- Any damage caused in case the insurer has un-occupied the property and missed to inform the insurance company.
How much home insurance policy costs?
The home insurance premium would be generally less than 1% of the home insurance amount.
I checked sample home insurance premiums today and found that for Rs 20 lakhs insurance coverage the home insurance is costing Rs 3,700+ per year. The amount can vary with various insurance companies.
Which are the companies offering home insurance policy?
Almost all general insurance companies offer home insurance policies in India.
Conclusion: All these points to be noted before you buy a home insurance policy. Just imagine, when you take this house insurance policy, you would have peace of mind when you go on vacation or to any other place.
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How home insurance policy can protect you from theft and accidents