As far as most people in the world are concerned, home is easily the most expensive and important asset that they purchase in their lifetime. Therefore, if your house gets damaged due to one reason or the other, it feels like a personal loss. This is where home insurance can come in handy. Losing homes can destroy you financially and emotionally. This is the reason why it is so important that you create safeguards, so that you are able to save your home from fire, earthquake, burglary and all other kinds of threats.
This includes natural disasters as well. It is common knowledge that natural disasters do not come with a prior warning. It is also known that they cause mass destruction. There is virtually no way you can stop nature from taking its course. This also means that there is little you can do to protect your home against the same. However, by taking the right steps, you should be able to minimize financial loss, in case you have to rebuild, or re-purchase everything.
At a very basic level, home insurance can protect you and your home from natural calamities and the like, at least from a financial point of view. This is the first reason you need to buy home insurance. Normally, in India, these policies come with two kinds of coverage – structural and contents.
The first one covers certain parts or aspects of your home, such as the permanent fixtures and built in items. The second one deals with the belongings that are located within your house. This includes the likes of furniture, tableware, utensils and appliances, to name a few. The good part is that there are plenty of general insurers in India nowadays that are offering these policies with comprehensive coverage. This means that their policies include insurance cover for the building structure as well as the contents therein.
A home insurance policy can safeguard your assets and property for sure. At the same time, these policies can also provide you the kind of additional coverage that allows you to enjoy extra benefits to make the most of your insurance policy.
With the help of this add on coverage, there is a lot that you can do. For example, you could use the money to live in a rented home while your own home is being rebuilt. In fact, such facilities could cover you for a full year as well. In this time, you can always rebuild and repair your house the right way. With the help of such coverage you can be sure you would have less stress owing to losing your assets to circumstances that you had no inkling would transpire.
Third Party Liability Coverage
This is yet another major benefit of these policies. This would protect you – the policyholder – against lawsuits that may be brought by others against you because of damages that they may have sustained because of you.
This would come in handy in circumstances where, for example, your neighbour sues you because you damaged some possession that belonged to her or him while it was with you. In these cases, it is your insurance policy that will take care of the same.