Earthquake Insurance Cover: People fulfill their dream of building their own house by saving every penny from years of earnings. In such a situation, if your house is damaged due to any natural disaster, then you know how you can compensate for it, in this news…
People fulfill their dream of home by saving every penny from years of earning. Our home not only provides shelter, but also provides emotional and financial security. But what if your home gets destroyed in a natural disaster? You must have seen that often natural calamities like earthquake render thousands and lakhs of people homeless in a jiffy and people come on the road in a jiffy. There are ways to avoid such problems and today we are going to tell you the same.
What is home insurance?
In today’s time, many insurance companies provide products like home and shop insurance. Such insurance is like a protective shield for your home and shop. They reduce the financial shock you face in case of damage to the house or the contents of the house. The house can be damaged due to natural calamities like flood, earthquake, fire and lightning or due to reasons like theft, dacoity and riots. In such a situation, the insurance company compensates for your loss. Products like home insurance help keep you tension free by providing a protective cover to your home.
What is covered in home insurance?
There are generally two types of home insurance. The first is the insurance of the house and the second is the insurance of the goods kept in the house. Home contents insurance covers electronic products, furniture, jewelry and other valuables. This is called content insurance. On the other hand, in the second type of insurance, the damage caused to the house ie the building is covered. This is called structure insurance cover. In addition, there is also the option of comprehensive home insurance, which covers both the home and contents.
Who Should Get Home Insurance?
Right now the whole world is going through a different kind of change. Earthquakes are happening every day. Somewhere the problem of landslide is troubling. Recently you must have seen the people of Joshimath becoming homeless. In such a situation, taking proper cover for the house can prove to be the right decision. Keeping in mind the location, it is necessary to take insurance. As important as a structure policy is, it is equally important to take insurance for the contents of the house. In many policies, apart from natural calamities and other reasons, losses due to terrorist incidents are also included.
Is home insurance necessary for everyone?
Buying a home is one of life’s biggest expenses. In such a situation, it is necessary to keep this investment safe. Sometimes banks also force you to take home insurance along with the home loan. It is said that if the insurance is not taken then the loan will not be available. However, taking home insurance is not mandatory, as neither the law, nor the regulators like RBI and IRDA have made it mandatory. In fact, the purpose of home insurance is to protect your capital in difficult times, which is why it automatically becomes necessary.
For what duration should I get insurance?
You can buy home insurance for one or more years. You are also advised to buy long term insurance while buying a home. Policy can be purchased for 1 to 30 years for structure, 1 to 5 years for goods and 1 to 5 years for both jointly.
How much is the premium for home insurance?
Home insurance policies provide protection to your home and its contents at affordable premiums. India Home Defense Policy is a standard policy. Various insurance companies provide this insurance. It covers both house and household items. Its premium ranges from Rs 2,500 to Rs 5,000. You can buy the most suitable insurance for yourself by comparing the products of different companies and their features.
