Home Insurance: Interesting Facts

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What are you most afraid of when you buy a home? Are there fears that thieves will break into your house and take away everything or that the house will catch fire or flood or that the cylinder of the house will explode and everything will be destroyed?

Your fears are not unfounded, such things have happened to landlords around the world. This doesn’t happen to everyone or very often, but when it happens it causes a lot of damage.

If I may say that there is a way by which you can reduce the damage caused by such incidents! This method is home insurance. A home insurance policy protects the structure and contents of your home and comes handy against damages arising out of any unavoidable event. It is very important for the safety of your valuable asset i.e. home. Here are some interesting things to tell you about home insurance.

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There are many types of home insurance

You can choose from a variety of home insurance policies to protect your home. You should choose the best policy according to your needs. Information about them is given below –

Standard Fire and Perils Policy

This policy covers damages arising out of any natural calamity, explosion, riots, strike damage, damage caused by direct contact with rail, road, vehicle, water tanks, equipment and pipes bursting or/ and damage caused by drifting, landslides, damage caused by sliding rocks, missile tests, leakages due to installation of automatic sprinklers, etc.

Home Structure / Building Insurance – This insurance covers the structure of your house and also the permanent items present in the house.

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Public Liability Coverage – This insurance will protect you if someone in your home (guests or third parties) gets hurt or damages their property.

Personal Accident- In this, the sum insured is given in the event of permanent disability or death of those who have been insured.

Theft and Burglary – This insurance covers the loss of stolen goods.

Content Insurance – This insurance covers your loss if there is damage to your furniture, electronics etc. due to floods.

What are the limits of home insurance

  • willful damage to your property
  • Common damage caused by wear and tear
  • war damage
  • Damage to property due to lying vacant for a long time
  • Loss by way of cash, antique, collection etc.
  • Damage caused by excessive use of any electronic device
  • pre-existing damage
  • nuclear war
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Home insurance is not very expensive

The amount you pay depends on the insurer. They use their home insurance calculator to tell you the exact amount. Here you are being given an example of this –
If the sum insured is 40 lakhs dollar for the building + Rs 5 lakhs dollar for the contents, then your cost could range from $ 2,000 to $ 4,000 per year. If you add more insurance coverage options like theft and burglary, personal accident etc., the amount will also increase.
Now you must have understood that home insurance is very important and beneficial and you can save lakhs every year by investing a little. Comment below or visit NoBroker if you want to know more about home insurance.