Skip to main content

Right Insurance cover is must for your house

 

With global warming leading to more natural disasters, need for house insurance is greater

 

DO YOU really need home insurance? Victims of the Mumbai or Andhra Pradesh floods or those hit by the earthquake in Gujarat and Uttarkhand will say you definitely do. Most Indians do not bother to take a home insurance policy, even though the rates for a basic home and contents cover are very low. So how much cover do you require and what do you need from your home insurance cover? Here are a few pointers:


Cover against fire: If you are a homeowner, then the structure of your home itself is highly important and needs to be covered against fire.


Cover against natural calamities: Make sure that the home insurance product you choose gives you adequate cover against unforeseeable risks and natural calamities such as earthquake, flood and cyclone. With global warming leading to more frequent natural disasters the need for such insurance is even greater now. Terrorist activities: This is one of the biggest threats today and can cause wide-scale damage to property, especially if you live in areas that have been targeted in the past such as Mumbai, Bangalore, Pune, Delhi and Coimbatore. Riots are also a big cause for concern. Regions such as Andhra Pradesh (Telengana issue), Gujarat, Mumbai and Rajasthan have seen wide-scale destruction due to riots. Burglary and Theft: Safety is a big concern and we need more protection due to lack of an appropriate security infrastructure.


   There are additional but invaluable benefits that you should consider as for protecting your home:


Home Contents: When looking for home insurance, you will have to decide on the critical assets that you need to cover. You would have invested your life savings in your home and would probably be dedicating a considerable portion of your salary towards loan repayments etc. Hence it is essential that you protect this investment from imminent dangers.


   You would also have spent a significant sum on furnishing your home with electronic goods, furniture etc. and may be housing jewellery and other valuables, all of which you will need to secure from the ever-increasing threat of burglary or theft. Your home insurance policy will also protect your electronic items from sudden electrical breakdown which could result from erratic power supply to your home.


Personal Accident: Some home insurance policies are more comprehensive in extending coverage not only to your home, but also to the residents of the home against fire and other natural perils. The other aspect that may prove worrisome is the possibility of an accident affecting your capacity to earn, leading to your inability to pay back the home loan. A personal accident cover is ideal for protecting you and your family members since it provides compensation in case of accidental injuries. So instead of taking a separate policy to cover accidents, one can reduce the hassle by investing in a package product that covers home along with providing an accident cover.


Pet Insurance: If you have pets at home, you probably want to secure their safety as well. A pet insurance policy is not quite common and taking such a policy can be quite cumbersome. Some home insurance policies provide pedigree pet insurance as a part of the package.


Rent Cover: In case your home is affected by a natural disaster, you would also have other incidental expenses and losses to worry about. You may need to find alternative accommodation and may incur rent expenses as a result. If you have rented out your home to tenants and there is a fire in your home, you may end up losing the rent that you normally get. A home insurance policy can cover these aspects as well.

 

Popular posts from this blog

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Nifty F&O

  1. What is a straddle? A strategy using Nifty options usually before a major event or when one is uncertain of market direction. Comprises purchase of a Nifty call and put option of the same strike price. Usually strikes are purchased closer to the level of the underlying index. 2. What is better ­ buying or selling a straddle? It depends.Implied volatili ty of options, or near-term expectations of price swings in an un derlier like Nifty , usually peaks before an event and falls when the outcome plays out ­ like Infy re sults in past years. However, once the event plays out, a sharp rise or fall in Nifty could result in price of the straddle rising ­ benefiting buy ers. But, normally , those who sell or write options charge hefty premiums from buyers in the hope that fall in volatility would ensure the options end out-of-the-money, hurting buyers. 3. So, do straddle sellers end up winning most of the time? Yes. That's invariably the case when market volatility is trending on the...

JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund    The new fund offer opens for subscription on 16 th June and closes on 30 th June. JP Morgan Mutual Fund today announced the launch of its open end fund of fund called Emerging Markets Opportunities Equity Offshore Fund. The fund will invest in an aggressively managed portfolio of emerging market companies in the underlying fund - JPMorgan Funds - Emerging Markets Opportunities Fund, says a JP Morgan press release. Noriko Kuroki, Client Portfolio Manager, Global Emerging Markets Team (Singapore), JPMAM said, "Emerging markets have been out of favour for several years, as growth decelerated and earnings struggled. However, in a world of globalisation, we believe that EM will eventually re-couple with DM, leading to the long-aw...

Good time to invest in Infrastructure Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Good time to invest in infrastructure The Sensex has gained almost 10 per cent from May 15 till date, while the CNX Infrastructure Index has gained almost 17 per cent in the period. The price to earnings ( P/ E) ratio of the BSE Sensex is 18.96; for the CNX Infrastructure Index, it is 24.57. The estimated P/ E for next year is 14.04 for the Sensex. Of the 24 companies that make up the CNX Infrastructure Index, six have a P/ E higher than 20. Does this mean infrastructure is fairly valued? Or, has it run up quite a bit? According to experts, barring stray companies, the infra sector is fairly valued and it is a good time to invest. Even if some companies are facing debt restructuring problems, once interest rates come down and regulatory norms become flexible, they will start giving good re...

Mutual Funds: Past Performance is not just everything

Many a times your agent / distributor / relationship manager tries to push you some mutual fund schemes by enticing you with a typical sales pitch…"Sir, this scheme has generated 20% returns in the past one year." And this sales pitch often gets louder when the market conditions have been favourable. Some of the agents / distributors / relationship managers have another unique way of luring you. They say, "Sir / madam this scheme has been awarded the best scheme award in the past by a leading business channel"... And hearing all these sales talks you investors very often get attracted and sign a cheque in favour of the respective scheme.   But please ask yourself do you hear these sales talks when the capital markets turn turbulent? Why is it so that your agent / distributor / relationship manager avoids talking to you during turbulent times of the capital markets and doesn't boast about returns generated by the respective funds or awards being conferred on t...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now