Benefits of Home Insurance Policy That You Should Know About

Owning a house is a dream that many cherish. While the feeling of purchasing a new home is unparalleled, it requires investing one's hard-earned savings. Not just that, this substantial investment often invites debt, and yet, is something that the majority of home-buyers rely on. Although buying a home is a stable investment, it can create an additional financial burden in case of damages. That’s when a home insurance policy comes to the rescue. A home insurance plan offers financial coverage for damages to your home. Just like how you purchase health, motor, commercial and even travel insurance to safeguard the different aspects of your financial life, it makes sense to also have the right home insurance plan. Since a home insurance plan is not mandated by the law, like a motor insurance plan, many homeowners can feel reluctant about buying one. However, considering the benefits that it offers, skipping on purchasing one will expose you to the financial risks that any damage to your home brings about.

Top Benefits of Home Insurance

·      Cover for damages to the structure of your house

The structure of a house can get damaged due to various reasons such as fires, hurricanes, storms, floods, and other natural calamities. But it's not just the perils of nature; events like vandalism, strikes, or riots can also bring about damages. In these cases, the cost of rebuilding it can mean spending all your life savings. Thus, house insurance benefits ensure financial cover from the damages that aren’t just natural disasters, but also other man-made events.*

·      Cover for contents in your home

Not just the structure, but the contents can also be insured under a home insurance policy. The contents can include jewelry, artifacts, electrical items and also home appliances. With an insurance cover for these contents, damages to these possessions due to the various natural and man-made events can be reimbursed.*

·      Third-party liability coverage

A home insurance plan not only protects against the damages to the structure and the content within but also the third-party liabilities that may follow. These liabilities may occur as a result of the damage caused to a third person because of the accidents that may occur at your home. For instance, a kitchen fire damages, not just your house, but also any adjoining units located beside. The cost of these damages can be steep, and liability coverage protects you in such situations.*

·      Temporary accommodation expenses

There can be instances where the home is damaged to such an extent that you need to relocate to a different accommodation until it is restored. In these situations, a home insurance policy provides a financial safety net. While this feature may not be a standard policy feature, you can still opt for it as an add-on. When selecting additional covers, make sure to check their impact on the premium amount using a home insurance calculator. *

·      Ease of financing

When availing of a credit facility for buying a house, most lenders require you to secure the property with a home insurance policy. Having an insurance cover helps the lenders ensure the safety of the money lent in case of damage to the property. *Standard T&C Apply These are some benefits a home insurance plan offers. When buying a policy, make sure to verify the different home insurance quotes and compare them not just for the price, but also for the features and coverage offered therein.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.