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.
