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THE
ORANGE
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Blog
2 mins Read | 1 Year Ago

Things to Consider Before Buying Home Insurance

Things to Consider Before Buying Home Insurance

Home Insurance is an investment that all home investors must consider spending money on, as it financially safeguards them in the event of any crises occurring on their property. This write-up seeks to shed light on what a Home insurance is, what a home insurance provides coverage against, the types of home insurance in India, and whether or not it is worth investing in.

What is a Home Insurance?

A form of a property insurance, a Homeowner’s Insurance provides for a premium to the insured, financial coverage against losses and damages incurred at the insured individual’s place of residence. This is applicable to furnishings and other assets found on the property. Additionally, this insurance provides liability coverage against accidents occurring inside the home or on the property.

Types of Home Insurance Coverage Plans

Standard Fire and Special Perils Policy – As the name suggests, this policy provides coverage against damage caused by fire, along with certain natural calamities. Damages covered include those caused by explosions of any kind, as well as man-made disturbances like riots and damages incurred as a result of malicious intent.

Home Structure/Building Insurance - Providing coverage against any structural damages and / or risks, this policy protects permanent fixtures within the property. These may be fittings in a bathroom, kitchen and / or ceiling. Extended structures on the property like garages are also insured.

Public Liability Coverage - This provides coverage against any damage caused to a third party on the insured property.

Personal Accident - This form of insurance provides protection to the insured individual and their family, in the event of the insured individual becoming permanently disabled or dying – regardless of where either of these events occur.

Burglary & Theft - This provides coverage for and compensates in the event of any valuable assets or furnishings being stolen from the property.

Contents Insurance – This insurance provides coverage towards the assets one possesses in their home and uses to personalise it. Documents, portable equipment, technological devices and home appliances are covered by this policy.

Tenants’ Insurance – For tenants, it makes sense to look for a policy that protects their assets found on the property, rather than the building itself, since they don’t own the land. This policy provides financial coverage for the contents a tenant has.

Landlords' insurance – Landlords are responsible for the upkeep of their property and this form of coverage provides them with the financial security in the event of loss of rent and / or public liability.

What isn’t included in these mentioned Plans?

Now that we know what a Homeowner’s Insurance covers, what isn’t included should also be considered. The following isn’t applicable to a Home Insurance –

  • Willful destruction of property
  • Damages incurred by natural wear and tear
  • Damages and losses incurred due to extreme events like war and nuclear bombs
  • In the event the property hasn’t been occupied for over a certain period of time and damages and losses arise on it, a Homeowner’s Insurance will not provide coverage against this
  • Losses in the form of cash, antiquities and collectibles aren’t ordinarily included. That being said, individuals can avail special add-ons for a higher premium, which provide financial protection against the last two forms of valuables.

Is House Insurance worth it?

In order to answer this question, Homeowner’s must consider the expenses they incurred when buying, building and/ or decorating their home. They must also consider the costs they would incur in the event of any losses and/ or damages occurring on their property. These expenses more often than not can end up being significant and while there exists no guarantee that an individual will run into them, there exists no guarantee that they won’t. While a Homeowner’s Insurance is an added expense, which can require recurrent premiums, it can help provide coverage in the future which could be an immense help.

Conclusion

When asking themselves “should we buy a Home Insurance?”, individuals must consider a number of Home Insurance policies and compare them prior to selecting a single one. Those who are renting their current premises can avail a Renter’s Insurance. It is vital that individuals read the fine print prior to investing in a particular plan, such that they aren't caught unaware.

T&C

 

DISCLAIMER

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.

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