What Are the Risks Covered Under House Insurance?
Have you not insured your home yet? When you protect so many valuables that you own, you should not neglect the importance of insuring home as it is one of the most significant purchases. Many people have home insurance as the last point to be purchased in their insurance list. But you must not forget that this policy can help you against any expense cause in case your property suffers damage.
Home insurance is not a mandatory insurance policy; however, it is good to have your assets secured to avoid significant losses as they say, ‘it is better safe than sorry’. Insuring your house can protect you against financial losses incurred by fire or natural calamities like earthquake, floods, etc. It can also safeguard your home up to a specific limit in case of theft or burglary. Many home insurance policies cover appliances that you regularly use such as refrigerator, television, air conditioner, kitchen appliance, fixtures, etc. You can also extend coverage for items like work of art and paintings in your house by paying extra expense in premium.
Before you invest in a home insurance policy, here are five major risk factors that you must make sure gets covered by the plan you choose.
- Earthquake – No matter which insurer do you choose, every insurance provider today offers comprehensive coverage against all-natural calamities like earthquake. You can purchase a home insurance policy with a standard cover, which has premium inclusive of coverage against all the natural and human-made disasters at cost as low as Rs. 60 per Rs. 1 lakh.
- Fire – Any fire accident can cause grave harm to your property structure and its contents. You will find many home insurance providers offering adequate coverage for the two major constituents of home. The first one being the structure that makes the building and second is the substances of the house. The policy must cover you against fire accidents and related perils for all fixtures and fittings in the house. You can also get cover for household appliances, house contents and jewellery etc.
- Flood, storm and lightening – Usually every home insurance policyprotects against natural calamities like flood, storm and lightning. Still, as a policyholder, you can add more coverage components to safeguard your house and the contents in it from any natural calamity. These add-ons can cost you an extra amount of premiums on your home insurance policy, but it will offer you complete protection against damage caused by floods, storm and lightning.
- Terrorism – Most of the insurance providers in India cover acts of terrorism for the first ten years of the insurance policy tenure. Although, you can avail this cover only when you opt for the add-on policy along with thecomprehensive home insurance policy. It will cover you against damage caused to your house due to an explosion or any other terrorist activity.
- Riot, strikes, burglary, theft and robbery – If you choose a comprehensive policy that covers both the structure and contents of the house, then it will cover for unforeseen events like burglary and theft. Some insurance providers offer add-on protections for events like riots and strikes as well. This cover is usually for a term ranging from 3 to 5 years, depending on the insurer company.