For most of us, it is difficult to visualize the benefits of a home insurance plan because we do not fully comprehend what is home insurance
. We tend to be myopic in our vision and focus only on the near-term. Alongside this, our idea of the future generally tends to be optimistic. That is the key reason why several young homeowners believe they might not need a home insurance plan immediately.
The reality is that since our thinking of the future is biased to short-termism and positivity, we do not see the home insurance benefits. But the very fact that our idea of the end may not incorporate the risks of natural calamities, terrorism, and other threats, is the reason why we should strongly consider home insurance.
A Lesson Learnt in Prudence: What are the Benefits of Home Insurance?
Prabhjyot grew up in a village near Ludhiana in an army-family. His father attained martyrdom when he was six years old. His mother, as brave as a soldier, single-handedly raised him. But, they never lived in a house they owned. So, as he moved to Delhi for his undergraduate studies, he vowed to buy a home as soon as possible.
Life Takes a Fortunate Turn
A few years later, he got two back-to-back promotions at work and became the head of the regional territory for a major FMCG company. He finally decided to fulfil his long-term ambition of buying a house. He immediately purchased a home in a considerably residential colony.
The Unfortunate Event Happens
His wife, his child, his mother, and he had been living there for only a few years when they decided to take a long trip to Andaman. He saw on the news that Delhi had witnessed riots because of some political unrest on his journey. His residential colony was one of the several areas affected. And soon, he got to know that rioters had practically burnt his house down since they saw the house was locked and it would not risk the life of a family.
Thankfully, Prabhjyot had a comprehensive home insurance
plan. But when he got to know the condition of some of his neighbours who had poured their life savings into their homes but hadn't insured it, he got a lesson at their expense – What are the benefits of home insurance? It saves your life’s savings from the unforeseeable and unfortunate events.
4 House Insurance Benefits You Must Know
While Prabhjyot had to go through an unfortunate event to see the prescience of buying insurance, you can simply read these four key house insurance benefits:
- Protects Your House’s Structure: One of the most significant home insurance benefits is that it covers the expenses required to repair or reconstruct your house’s structure after it has been through a calamity or unanticipated event. If your home is not insured, this would be the most significant overhead for your savings.
- Protects the Ancillary Structure of Your House: Alongside the structure of your house, several home insurance policies cover the supporting and ancillary structure like garages, backyard, front yard, and even post-boxes at the edges of the estate.
- Protects the Contents of Your Home: A comprehensive insurance policy will give you the relief of covering the structure of your house as well as the contents of your house at affordable home insurance quotes. This essentially covers the cost of redecorating your home and making it comfortable enough for living after it has been through an unfortunate event.
- Saves Your House from Both Man-Made and Act of God Events: One of the most ignored home insurance benefits is that it protects your home from both man-made events like riots and terrorist attacks and Acts of God like natural calamities.
- What is Covered Under Home Insurance Benefits?
Home insurance protects your house structure, supporting structure, and contents from accidents, terrorist attacks, riots, burglaries, and natural calamities.
- Can I Buy a Home Insurance Policy if I am a Tenant?
No. Only the homeowner can buy a home insurance policy. However, you should encourage your homeowner to buy it since she can avail of its benefits even if she does not reside in the property herself.
- What is the Tenure of a Home Insurance Policy?
It depends on the type of policy you have purchased.
|Comprehensive Home Insurance
|1 Year to 30 Years
|Home Insurance (Only the Structure)
|1 Year to 30 Years
|Home Insurance (Only Contents)
|1 Year to 5 Years
|1 Year to 5 Years
(Note: The tenures are given only for your guidance and will depend on the exact policy you purchase.)