Once you build your home, start taking care of your family and loved ones, or share the duties at home, you will need to indulge in financial planning. This ensures that your finances are in order so that you can fulfil any responsibilities you may be shouldering.
One aspect of financial planning is creating wealth to secure your future. Another is creating security against the possibility of having to face emergencies in the future. One of the simplest ways of protecting your finances against any future emergencies is to buy insurance.
There are various types of insurance plans available, and you may need at least a few of these if you carefully consider your needs and wants. These can be broadly categorised as life insurance and general insurance
. To create a strong financial plan, it may be better to consider general and life insurance separately.
Within general insurance
, there are various categories for you to consider. One of the important yet commonly ignored ones is home insurance
What is home insurance?
Your home is what keeps you and your family sheltered through the ups and downs of life. It is one of the most basic needs of life. If you own a property or a house, be it of any shape or size, you are also likely to fill your house with some belongings. Most of these, along with the house, will be precious to you. Some of these will even be the catalysts in many of your good memories.
As you protect your life, health, car, and other belongings, you may also want to protect your house and the contents within. While this could start with security measures to keep your house safe, you could also buy home insurance
to protect your home financially. *
What does home insurance offer?
This is a type of insurance that can offer coverage for your house/property as well as your belongings. You can choose whether you want to cover either or both of these. Home insurance commonly offers protection against natural calamities, including earthquakes, storms, and floods, as well as other disasters such as fire. *
Types of home insurance
There are a few different types of home insurance
plans that are available. You can either pick one that you feel is suitable for you, a combination of a few, or you can pick a comprehensive plan that offers you a fusion of multiple policies.
Here are a few commonly available types of home insurance
covers you can choose from.
Standard fire and special perils
As the name suggests, this policy covers your home against damages caused by fire or any other calamities, natural or man-made. The inclusions of events covered may differ from one policy provider to another. Check the policy details carefully before you make a purchase. *
This is the sort of policy that offers you financial coverage against theft or robbery and the damages caused by it in your household. *
This cover can be viewed as an extension of home insurance
, as it is supposed to protect your loved ones. If the person insured by this policy meets with an accident, which results in a disability or worse, the policy may offer a pay-out to the beneficiary. *
This is a type of standard policy available with various insurers. It protects your house and belongings as a standard fire and special perils policy does. *
If you are a landlord, you will need to protect all your properties, even the ones that you have lent to tenants. A regular home insurance
policy will not help you protect these properties. In these cases, you will have to buy landlord insurance, which is also a form of general insurance
If you are living in a rented space, you may want to consider this insurance. It allows you to protect your belongings in your rented house, while the belongings of the landlord may be protected with landlord insurance if they choose to do so. *
* Standard T&C Apply
Importance of home insurance in financial planning
When considering insurance within their financial plan, many people may prioritise life insurance, as it helps secure the future of their loved ones. However, if you are looking for all-around protection, it is important to consider general insurance
options as well.
Insuring your home means protecting your property and belongings against any unfortunate circumstances. It is a part of protecting your future as well as that of your loved ones. Hence, you should include home insurance
as a part of your overall financial plan.
To begin with, you can start by choosing which plans you seek. You can either get individual covers or look for comprehensive plans. Once you shortlist the plans you find suitable, you can use a home insurance calculator
. This will help you understand how much you will need to spend for the premiums of this sort of insurance, and how much coverage will you get for the same. * Standard T&C Apply
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.