POSTED BY February 27, 2019 COMMENTS (2)ON
In this article, we will see how you can protect your home structure and belongings from natural and man-made disasters. We are talking about “Home Insurance” Policies.
We all invest our hard earned money in buying our dream home and our lives revolve around it. Unwanted natural disasters and man-made threats can threaten the security of our home and its belongings and can cause surprise monitory losses.
We have all heard about all kind of insurance policies like term plan, health insurance, car insurance etc, but very few people have knowledge about “Home Insurance Policy” or also called as “Householder insurance policy” . Before I explain more on that, let’s see what are some of the real life threats and real life incidents where people have lost their homes and belongings
Example #1 – Burglary
As per this times of India report, burglars broke into 4 houses in Ghaziabad on February 27,2019 and took valuables worth Rs 20 Lacs. Among the 4 houses, one of the houses was just 500 m away from the police chowky and burglars took jewelry and cash worth Rs 500000.
Example #2 : Fire
As per this report, on January 4, 2018, Four people died after a fire broke out in Maimoon Building that housed residential complexes in the suburban part of Marol in Mumbai. Besides the four dead, five people were injured in the accident.
Example #3 : Floods
To give you a recent example of a flood disaster which took place in Kerala in August 2018. Around more than 400 people lost their lives and almost everyone lost their homes and belongings.
Example 4 Earthquake :
Nepal Earthquake which happened in April 2015 killed almost 9000 people and injured 22000 people. Total damage of Rs 1000 crores USD (which was 50% of Nepal’s Nominal GDP).
Can you see from the above examples, that these threats are real and it can possible happen to anyone in real life (even though the probabilities are quite small).
Householder insurance policies are policies, which protects the home-owners against damage and losses that affect their property and belongings. The exact terms of coverage varies from policy to policy; however, most insurance policies cover perils like hail, thunderstorms, fire, and theft.
Many policies also offer financial assistance if a homeowner must be temporarily displaced because their home has been damaged. Look at this video below which explains it in a crisp way!
The insurance for your home can be broadly divided into 2 parts :
Here are some of the companies in India, which offers these Householder Insurance Policies. (Please do not consider this as a recommendation list).
|1) Protection against earthquake, floods.|
|2) Cover against terrorism.|
|3) Cover against fire and allied perils.|
|4) Protection against cyclone, storm, hurricane etc..|
|5) All risk jewelry cover.|
|6) Additional rent for alternate accommodation.|
Here are some of the reasons why to buy a home insurance policy.
Both Owner of the house and renter can buy this policy. There is just a basic difference between the both. Let’s see what it is?
|OWN HOME INSURANCE||RENTED HOME INSURANCE|
|In this type of insurance the home owner either insures the structure or contents (belongings of his home) or both.||In this type of insurance the renter insures only his contents or belongings in this rented house.
The structure of the house is insured by the owner of this house
Below images shows the detailed structure of the policy with premium break-up of one of the known Home Insurance Policy. Details of the cover are as follows :
I think you will agree with me, that we have almost no control on these natural & man-made disasters. The best we can do is be alert and prepare ourselves by insuring that we secure our belongings and structure of the homes.
Also, these policies should be preferred more by people who stay in an earthquake or flood sensitive zone and who do not stay in a secured society and vicinity. I understand that the chances of these risks which these policies cover is quite small, but then it’s up to you if you want to get these risks covered or not.
Do you think buying these householder insurance policies makes sense?
Please share if you feel it makes sense to purchase these policies? share in comments section below!
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