Home Insurance Coverage: An Updated Guide for 2023

There is no place like one's own home. Isn't it true? Home is where one turns to for comfort, to spend time with their family and loved ones, and quite often, buying a home is one of the most important decisions one makes in a lifetime. Therefore, it is only right to take good care of an investment that is so precious and protect it against any damages and at the same time protect oneself from the financial costs that may incur due to any kind of damage to it. This is where home insurance comes into the picture.

What is Home Insurance?

Just like health insurance provides financial coverage for ill-health, home insurance covers you against the financial impacts of damages to your home or the contents within. Different plans have different scopes, and thus, appropriate coverage can be purchased depending on your requirement. Since repairs to the home can be nothing short of extortionate, many financial institutions make it mandatory to buy a home insurance plan when financing the purchase.

What is Covered by Home Insurance Policies?

Here is a rundown of what remains covered under a home insurance policy:

Coverage for Structure

Home insurance in its basic form protects your house against any damages to its structure. These damages can be due to natural disasters such as floods, earthquakes, typhoons, and cyclones that may require rebuilding your home. Other than natural calamities, man-made perils are also included within the home insurance policy’s scope. *

Coverage for Contents

Depending on the type of insurance plan, home insurance coverage also includes protection for the damages to the contents at home. These can be appliances, furniture, artifacts and even jewelry. These different items are covered by a home insurance plan providing compensation for not only the damages to its structure but also the contents within. The compensation paid by your insurance plan specifies the list of items that were present at the purchase or renewal and only those contents are included in the policy’s scope. *

Protection for Liabilities

Apart from compensation for the damages to the structure and contents, a home insurance plan extends its coverage to protect the homeowners against liabilities in the event of an accident. For instance, a fire at your home can also damage the adjoining home units. A home insurance cover protects you from the liability arising due to such accidents too. *

Compensation for Alternative Accommodation

Some home insurance plans also include compensation for alternate accommodation in the event your home is damaged. This additional coverage can help to protect your finances, which otherwise may be required to be paid for any interim accommodation that you stay at while your house is getting fixed. * *Standard T&C Apply

How is the Coverage Determined for Home Insurance Plans?

The coverage of home insurance plans is based on two parameters — the value of the building and the value of the contents. Both values together determine the total value of your property and accordingly, the sum insured must be purchased. Underinsuring your home may lead to a financial loss in case of damages. *Standard T&C Apply To decide on how the coverage impacts your premium amount, you can make use of a home insurance calculator. This is a nifty tool that can be used to select adequate coverage and the right policy features.   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.