Types of Home Insurance

Understanding what is homei insurance with thorough researchi and deciding on gettingi one for your humblei abode is a greati initiative for you andi your family. However, beforei you finalize the insurancei policy, you should researchi the types of homei insurance. This will helpi you articulate your requirementsi and find the righti insurance cover that fitsi your needs.  

The Basicsi of a Home Insurancei Policy

Home insurance will helpi your savings from gettingi eroded if your housei faces a natural calamity,i gets torched in ai civil riot, or isi damaged by accident. Suchi instances are often unforeseeablei and hence can causei sudden financial distress. Ifi your home insurance policyi covers the particular incident,i you will get compensatedi as per the duesi listed in your policy.i  

Types of Home Insurancei Policies in India

Fire Insurancei is one of thei most common types ofi home insurance policies ini India. However, the Indiani home insurance market hasi to offer several otheri policies with more homei insurance benefits.

1. Structural Cover: Thisi is the most standardi form of an insurancei policy. Such policies coveri the structure of youri home in case iti gets severely damaged. Thei policy will usually coveri the costs you mighti have to incur toi reconstruct or repair thei damaged part. Such policiesi are frequently acquired withi add-ons that give coveragei to supporting structures likei post-boxes, backyards, distant garages,i etc.

 

1. Home Content Cover: Homei Content Cover, as thei name suggests, provides coveragei to the contents withini your home. This generallyi includes your furniture, movablei & immovable electronic items,i and valuables like jewellery.i The caveat here isi that you should bei the owner of thei asset insured, and iti should be a resulti of a deliberate attempti to damage it ati your hands.

 

1. Fire Cover: Otheri insurance policies are differentiatedi by 'what is coveredi by the policy.' Firei Cover gives you coveragei against a common sourcei of damage – fire.i Incidents like unforeseeable naturali calamities and accidents arei covered under a firei insurance policy. It cani be used to geti coverage for your home,i its contents, or both.i You can also geti fire insurance for youri goods stored in distanti warehouses with fire insurancei policies.

 

1. Public Liability Cover: Assumei a situation – Raji visited his friend Mohan’si new home. Mohan hadi saved up some moneyi and bought an oldi apartment. He was yeti to make the necessaryi repairs in the apartmenti but had moved ini and called Raj fori a nice evening ati his place. Raj boughti his new PlayStation fori the evening. He placedi it on the center-tablei in the dining areai and suddenly heard thei noise of a crash.i A big chunk fromi the roof had falleni on his PlayStation, leavingi it well-damaged. If Mohani has a public liabilityi cover, he might geti compensated for the damagei caused to Raj andi hence cover any liabilitiesi he has towards hisi friend.

  So, when unforeseeablei damages are caused fori any reason inside youri home or in thei premises of your legally-ownedi area, a public liabilityi cover will compensate youi to a large portioni of the hence duei expenses.  

1. Theft Cover: Thisi particular variant of homei insurance covers any damagesi you might have incurredi because of theft. Iti compensates you for anyi stolen goods and valuables,i as far as theyi are covered under thei policy and your insureri can ascertain their value.

 

1. Landlord’si Cover: This is ideallyi a cover meant fori landlords. It gives coveri to your building’s structurei and contents, even ifi you are not livingi in it. It cani take away a majori source of headache sincei you can never bei entirely sure how youri valuables and building arei being handled. As fari as you own thei content and the building,i you can get compensatedi for the damages.

 

1. Tenant’s Cover:i This covers only thei contents since tenants doi not own the building'si structure. However, as ai tenant, you should consideri renting an apartment ori a house covered byi the landlord's insurance. Thisi would save you fromi potential tussles with youri landlord if the propertyi or its contents ori both incur some damage.

 

Howi to Choose From thei Various Home Insurance Policyi Types?

Exploring a wide rangei of home insurance policyi types can help youi make the right decision,i but it can alsoi be a confusing experience.i Answer these questions, andi you will have ai good idea about whichi insurance policy will worki for you:

1. Which assets doi you want to coveri on?
2.  
3. Who owns the assetsi you want to bei covered?
4.  
5. Which are the mosti likely scenarios you believei can cause damage toi your home or itsi contents?
6.  
7. How valuable are thesei assets for you?

 

FAQs

1. What isi the best type ofi home insurance policy?

Generally, ai comprehensive insurance policy givesi you the maximum rangei of benefits.  

1. How Muchi Home Insurance Do Ii Need?

Calculate the cost ofi rebuilding, cost of thei assets, cost of temporaryi alternate living, public liabilities,i and the deductible oni your insurance. Add thesei up, and you willi have a reasonable ideai about the amount ofi insurance you need.