Having a house of your own is something that everyone dreams of. And there is no better feeling than when this dream comes true. Property is one of the most useful assets that anyone can own. But what many tend to neglect is securing that property.
Owning a house is an asset and it is important that you ensure its security. This is where a home insurance cover can come to your rescue. In contrast to other types of insurance policies, like motor vehicle insurance, home insurance covers are not mandatory by law. This is one of the major reasons why people, especially in India, neglect to buy proper home insurance. However, property insurance hold importance in your life as any damage to your house can lead to a big hole in your pocket.
Advantages of Home Insurance and Its Features
In simple words, home insurance is an agreement between a residential property owner, i.e. you, and a home insurance provider, wherein the latter offers protection to your house from any loss or damage that may occur due to an unforeseen situation. These home insurance companies not only provide risk coverage from damage caused to your house but also help you with the legal procedures and responsibilities concerning your property. Adding to this, home insurance covers losses and damages that mostly occur due to natural disasters and/or manmade misadventures. However, with the plethora of home insurance providers offering different plans and covers, you have the flexibility of choosing a cover that suits your requirements the best.
The primary function of any home insurance policy is to offer risk coverage. And based on this, here are the benefits that a property insurance cover offers –
1. Protection Towards the Structure of Your Home:
In cases where your home is damaged due to mishaps like fire, hurricane, hail, or any similar disaster, then your home insurance provider will compensate you for rebuilding or repairing your house.
2. Protection Towards Your Personal Belongings:
Another advantage that comes with a home insurance cover is protection for your personal belongings, like furniture, electrical items, as well as electronic appliances that you may lose due to theft, fire, or any natural calamity that occurs.
3. Protection against Third Party Liability:
If in case your neighbor or any third party gets hurt or experiences loss or damage of their property because of you, your home insurance policy has got you covered. Though the amount being covered may differ depending upon your policy, home insurance will also help you with the legal expenses, in case there is an involvement of the court.
4. Living Cost Coverage:
In case your home is damaged due to a natural disaster or a manmade one, your insurance cover will take care of your additional living expenses. For example, if you shift your base to a lodge or a hotel till your home is repaired.