Last Updated on May 20, 2021 by MoneyVisual
For a lot of people, in fact, most, buying a house is a significant investment and a goal that takes a lifetime to reach.
With real estate rates reaching the skies, it has become even tougher.
So when you do buy a house, it is a must that you get yourself a well-researched home insurance plan.
I would advise you that you don’t assume that it is a waste of money to invest in something that might not even happen. Trust me; it’s not.
You may have seen the increase in natural calamities and what nature can do to man-made things. You do not want to face a financial setback because of something that you could have avoided, or gotten covered.
If you are not convinced yet, continue reading this article where I talk about the reasons you should get yourself home insurance.
1. Truly not Expensive
There are several benefits that can be reaped by investing in a home insurance policy, all of them being more than what money could buy.
Hear me out.
Say you were to get an insurance of about Rs 40 lakh, you would get a policy that would be worth only about Rs 2000 annually (this subject to change according to each company and circumstances.) In fact, if you were to pick out the right insurance agency, you could get a comprehensive policy, which could not only cover your house but the items in it, for a low cost.
2. Replacing Your Belongings
When you decide to insure your home, you shall come to know that you will have financial security along with the benefit of having your belongings replaced. There are various kinds of home insurance policies available in the market, so depending on which one you choose, you will have the option of having the insurance company replacing your damaged goods. So, instead of just claiming the equivalent amount of money for the loss you had to bear, you could get your things back!
3. Protection from Lawsuits
As I mentioned before, there are various types of policies available, and you will have to pick the one that suits your needs the best. Now, if you decide to go for the one that includes clauses to protect you and your family from any sort of property-related lawsuits, it would be apt. Say you were to damage someone else’s property, on accident, of course, then this should be covered saving you from a hefty lawsuit. As a bonus, you should be glad to know that it would also include the medical expenses of any guest that is injured in the incident.
4. Help with Relocation
Say in the worst-case scenario, everything you owned was to be destroyed, and the place was such that you couldn’t use it. In that case, you’d need another place to live, right, until everything went back to the way it was? The construction process would take time, but what would you do in the meantime? Insurers are capable of being able to help you with providing you funds for such situations. You will have to read the terms and conditions of the policy you’re going for.
5. Covers Extras
When you get a certain kind of home insurance, you could have your fence, garage, shed, etc. covered. These may seem like menial things, but they end up adding large sums to the amount you’re going to spend on fixing or installing new components is costly. Since your policy may cover everything inside and outside your house, in the boundary of your property, it will help your expenses in a big way.
6. Protection from Natural Disasters
One of the nightmares that are known to be haunting homeowners all around the world is being a victim of a natural disaster. You would put yourself under a lot of financial burdens if you were to reconstruct everything from the ground. Imagine the kind of stress that you and your family would have to go through. With home insurance that has been made in detail, covering several aspects, you can rest assured that you will be taken care of.
As a policyholder, it is your responsibility to make sure that you have the right kind of insurance under your name, that will keep you and your family safe in financial terms.
Read the terms and conditions mentioned in the policy to make sure you’re getting everything you opted for, and are paying for. You should also safely keep all documents related to the insurance as proof if you wish to claim it.
No matter where you live, whether it’s an apartment, villa, or a bungalow, you must get home insurance to help you be financially sound in tough times.
Remember, that unauthorized properties cannot be claimed under insurance policies. So want to make sure that before you sign the papers to your new home, you organize a background check ensuring everything is cleared.
Here’s another thing that you may not know.
If you are a tenant, don’t worry; you are eligible to insure the components of the house that you have rented out.
So you see, there are serious benefits to getting home insurance. It will give you peace of time and take away a considerable amount of burden off of your shoulders in case of any damage to your property.
You can also find the coverage checklist infographic for fire insurance here: A Coverage Checklist For Fire Insurance
Vishal Bhatt is an insurance surveyor and loss assessor for Rakesh Narula & Co. He has been in the RNC family for the longest time and has years of experience working on the field. He has an affinity for writing and wants to help people with the wonders of the internet by solving their queries and answering questions they didn’t know they had.