Home insurance offers you added protection by providing coverage to your house against unforeseen circumstances, such as damages caused by natural calamities, theft, burglary, etc. Be it damage or loss to an apartment / house you own, or a rented residence, a home insurance policy ensures added safety you need for your shelter. While fire precautions or installing door locks and security cameras are important, securing the home with insurance is also needed. We tell you why.
Need for home Insurance
Natural calamities and accidental damages do not give notice before occurring. By nature they are unexpected. A single incident has the potential to drain your savings with repairs/losses or renovations. This is why you need a home protection plan to cover the repair costs or compensate you for your stolen valuables. While home insurance is not mandatory in India, it might be prudent to opt for one, after taking into account the risk factors.
When you make household upgrades, you may also be offered a home warranty, and in case you already have homeowners insurance you would need to evaluate the need to opt for an additional cover.
What Is a Home Warranty?
Home warranties are very different from home insurance, which typically safeguards you from a limited range of risks. These warranties can be renewed indefinitely unlike an insurance plan with a fixed term that begins on the purchase date.
It is an all-in-one policy that covers a whole lot of other aspects like appliances, and systems like plumbing, etc. Home warranties can guarantee repairs but don't include routine maintenance like home insurance policies. They offer maximum coverage and broaden your protection across every area of the home.
Is Additional Coverage Important?
Home warranties cover systems that pertain more to daily living as opposed to large crises. When one of your household systems runs into a problem, you can just cut to the chase and avoid the stress of reading customer reviews or calling to collect quotes from various contractors before getting to solving the problem. These plans help you to be more assured about the quality of service, and not undergo any further stress in that regard.
Although home warranties prove to be very useful perks, not all insurance companies offer them, but if you feel the need for opting for this added coverage, it can be obtained on request.
Exclusions to bear in mind
While opting for suitable home insurance, it is essential to understand what the policy would cover, and what it would exclude. Every policy will also have specific terms and conditions on the limits of coverage it offers on items like jewelry, securities, cash, etc. Some of the exclusions to a home insurance policy that are quite common across companies are as follows:
● No cover on pets ( animals, birds, and fishes).
● Damages caused due to water, be it flooding or water backed up through drains.
● Physical damage or bodily injury caused by an intentional act.
● Movements of the earth.
● War or any nuclear damage.
House insurance plays an important role in protecting your most valuable asset. Merely buying the dream home does not imply total stability and security. Protecting it matters equally, if not more. It is important that you carefully review your insurance policy and thoroughly go through the terms and conditions, to find out exactly what kinds of perils your policy offers to protect your home against and what it doesn’t.