Purchasing a new house or constructing a house from the scratch is not a child’s play. You have to shell out a major part of your savings to get a home of your dream. Even if you avail home loan to buy a house, you still have to think about paying the monthly EMIs. So, when you invest such a huge amount of money, you must safeguard your investment. Dangers like earthquakes, flood, robbery, etc. can completely turn your life upside down. This is the reason why one should purchase home insurance policy.
What is home insurance?
As a matter of fact, there are various types of home insurance policies available. But, the basic purpose of almost every policy is to insure your residential property against different circumstances. The circumstances can be weather-related, such as earthquakes, flooding, hurricane, fire, etc. Any kind of damage caused to your house will be covered under these policies.
Apart from natural disasters like earthquake and flooding, the home insurance policies also insure your house against man-made events, such as fire, vandalism, etc. It is important to mention that every home insurance policy contains some exclusions and inclusions. In order to buy the best policy, it is vital to know about the various exclusions and inclusions. For those who do not know, some home insurance policies also cover your personal belongings which were inside your house at the time of incident. But, if you do not want to make the premium costly for you, it is better to opt for the standard home insurance policy.
The need of home insurance explained
So, what makes home insurance policies so useful for the home owners? Why it is so much important to get your house insured? Without any doubt, your house is the most expensive asset in your list of assets & liabilities. In addition, your emotions are also strongly attached to your house. You never know when life can take a devastating turn. Natural disasters like earthquake, deadly hurricane, and flood can cause tremendous damage to your property. Such incidents can shake the complete framework of your house. In such a case, living inside such a house can prove to be dangerous. Rebuilding or repairing the structure becomes highly important, for which again you have to spend a lot of money. This is where the role of home insurance policy kicks in.
In such scenarios, you do not have to shell out money from your wallet. The expenses of repairing the damages caused will be covered by your home insurance policy. The coverage will encompass raw materials as well as the labour cost for repairing the building. Hence, rather than going through a horrific situation, it is better to buy a home insurance policy and remain worry-free about the monetary aspect.
In addition to the reasons mentioned above, there are many more benefits that add up to the importance of home insurance policies. Some home insurance policies provide additional features along with the regular coverage. It all depends on the kind of home insurance policy you are buying. Features like additional coverage, extra discounts, and customized policy are some of the most widely preferred ones. Likewise, there are different types of home insurance policies available, such as tenant’s insurance, landlord’s insurance, buildings insurance, content insurance, and many more.
Covers your valuable assets and personal belongings
For those who do not know, most of the comprehensive home insurance policies also cover for damage caused to the personal belongings inside your house, such as furniture, jewellery, electronic appliances, clothing, etc. Fire, flood, and burglary can cause loss of such items, which can be quite painful for your wallet. All you have to do is at the time of purchasing the policy, you should include the items in the list you want to get covered.
Protection against liabilities is important
Home insurance policies also cover your liabilities. It means if any physical damage or loss of property is caused to your guests (residing in your property) then you will not have to pay for their losses. So, if there are tenants living your house then in such a case having a home insurance policy is absolutely important. Otherwise, you will have to cover their losses; failing to do so might land you in legal problems.
Provides coverage against man-made calamities
If you are living in a region where social unrest always remains a major issue then you must get your house insured by a comprehensive home insurance policy. Vandalism, anti-social activities, riots, strikes, etc. can prove to be quite damaging for your property. If anything bad happens, the policy will help you recover financially from the loss.
So, those were some of the valid reasons that make home insurance policies quite important for every home owner. In case you haven’t insured your home yet, do it ASAP!