Homeowners insurance or also known as home insurance is a type of property insurance, which covers losses and damages to an individual's private residence and/or assets in its home.
In India, some leading home insurance companies provide a wide range of home insurance policies, and these varied types insurances enable the individuals to understand the necessity of it before they pick the right plan according to their requirements.
Following are the primary and popular types of home insurances:
This type of insurance offers coverage against special perils and fire outbreaks. It can be brought by the house owner for its own house, and by tenants residing in rented houses. The sum insured, for this insurance is calculated by the Building - Cost of reconstruction (exclusive of land value). A Standard Fire and Special Perils policy protect the insured home against loss and damages caused due to the following incidents:
A type of home insurance, it covers the structure of a house from risks and dangers. Moreover, it also protects from any lasting fixtures within the house such as a kitchen and bathroom fittings, ceiling/roof of the insured house, and since a few houses have garages, outdoor room/house or sheds, this insurance extends to these structures, too.
Inside the insured’s home, by any chance, if a guest or a third party experiences some damage on its property, then this home insurance provides coverage against the same.
This home insurance policy or plan covers your family and own self by providing you with compensation in case of permanent disablement or death of the insured person due to an accidental or physical injury.
If burglary or theft occurs in the insured house, and if any valuable contents are stolen/damaged, this insurance policy will cover you for it.
When you purchase home insurance, you're not just insuring the house, but also the high valued contents inside it. Hence, this type of home insurance policy aims to protect the goods inside your house from damages and/or loss due to theft, fire, flood and other mishaps. It also covers vital documents, portable equipment, jewellery, TV, refrigerator, etc. This policy will also assist the individual while replacing the interiors of its house if it gets flooded or burnt into ashes by fire.
If you're a tenant, you might have rented a house or flat, and in such cases, it'll be a wise act not to opt for buildings cover, instead, focus on protecting your valuable contents. This type of insurance is a must for tenants because although it's a rented house, it is still very much yours, at least until you're residing in it.
As a landlord, it's your prime duty to maintain the building/apartment/structure of the house you are planning to rent out. Hence, there is specific insurance designed for landlords- The Landlords’ insurance policy is an ideal one to opt for if you're a landlord, and it also covers other things like public liability and loss of rent.
Well, just like how you opt for insurances for the medical and financial well-being of your loved ones, your house requires some kind of protection from various external perils, too. Hence, home insurance is invented for this reason- to protect your house from natural or man-made risks. The various reasons as to why house insurance is vital are listed below: