What is Home Insurance? and What does it Cover

Do you know what is home insurance? What are the benefits of getting home insurance? If not, it doesn’t matter.

By reading this post today, you will be able to get all the information about home insurance. With this, you will also be able to decide whether you should get home insurance or not.

Home is our biggest investment and most of us are able to build a house only once in our lifetime.

Unfortunately, millions of people dream of having their own home and they spend their whole lives trying to make their dream of having a home come true.

One can ask such people what it means to have their own home. Our dream home and house is always surrounded by many possible mishaps like natural calamities like earthquake, hurricane, fire, and theft, etc. Any of these disasters can damage our home or its belongings.

So, having a home insurance policy (home insurance) gives us peace of mind that we cannot prevent natural calamities but if there is any damage to our house due to these then we will be able to repair it easily.

All of us definitely get our car or two-wheeler insured but do not insure our most expensive investment i.e. home. Today we will talk about what are the benefits of getting home insurance and who should get this home insurance.

Many of us do not insure our homes because we feel that we will never face such a day in our life. For those who wonder, I just want to say, “Ask those who have been victims of such disasters?

I’m sure none of them would say that he already knew this would happen. Hence, having home insurance is always beneficial. It is not even necessary that we will talk further about which people should not get home insurance.

There is a misconception among many that a home insurance policy covers only the building of the house.

Here I want to clarify that such an insurance policy can cover electronic components, jewelry, antiques, and whatever else you want to secure with your home building.

What is home insurance and what does it cover?

Just as life insurance provides protection to you, motor insurance provides protection to your vehicle, similarly, home insurance or home insurance provides protection to your home and its belongings.

Many general insurance companies offer home insurance policies that one can buy to insure their home.

Home insurance covers the damage caused to the house due to any natural calamity such as hurricane, earthquake, fire, cyclone, lightning, flood, or any other natural calamity.

Similarly, even if the contents of the house are stolen, home insurance covers the loss. Some home insurers offer money up to the repair of the home.

Some home insurers offer money up to the repair of the home.

Which homes can be insured?

Home insurance companies before insuring a home based on factors such as where the home is built, what the house is like and what it contains (if you want to ensure the same), and how old the house is. But it decides whether to insure the house or not.

For example, if your house is more than 50 years old, the insurance company may refuse to insure your home.

Similarly, if your house is in someplace where there is a high probability of natural calamity like landslide, earthquake, cyclone, etc., the insurance company may refuse (or you will have to pay a higher premium).

How is Home Insurance Premium Determined?

The home insurance premium is not fixed. To determine the home insurance premium, how much space the house is built in, what can be its market price, what is the material in the house, what is the area where the house is located, what is the environment there, what are the chances of natural calamities there Possibility is seen etc. It is decided on that basis.

Generally, insurance companies insure only the building of the house. Whose premium is also not high. But some people want to get home goods insured as well. In such a situation, the insurance companies also insure the house property by increasing the home insurance premium.

If you live in an area affected by floods, earthquakes, or landslides, you may have to pay a higher home insurance premium.

Get home insurance or not?

No one wants to get insurance, especially home insurance. But still, it is a necessary thing and it should be done by everyone. Here below are some points that can help you to know whether your home needs home insurance or not.

Reasons to get home insurance:

  • If you are always afraid that your house may be stolen behind you, then your valuables may be stolen, then you should get home insurance so that you will be able to go anywhere without worry because you will be at ease in your heart that your home and its The goods are covered by the insurance company.
  • If your house is located in such a place where there is a fear of natural calamities, then you can get your home insured.
  • Incidents like theft happen frequently in your area, then you can get home insurance.

Every home needs repairs, so if you feel that you will be unable to repair your home when needed, then you can buy home insurance that will also pay for your home repairs if needed.

Don’t get home insurance

If your house is located at a place where there has not been any tax loss due to any natural calamity in the last 10-15 years, then home insurance will not be beneficial for you.

If there has never been a theft in your neighborhood and CCTV cameras are also installed there, then in this situation it will not be beneficial to take insurance to secure the belongings of the house.