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You may have come across the term home insurance many times. However, it is a factor that is often overlooked by people while purchasing a house. Home insurance is a type of insurance which offers coverage against your property damages, loss of personal assets, etc. The coverage limit usually varies according to the type of insurance plan which you are availing. Your house is one of the costliest assets you possess. Home insurance can give you financial coverage if any unfortunate event like a fire, earthquake or flood occurs resulting in property damage or theft of valuable assets in your home.

 

How does it work?: A home insurance policy can be initiated by paying a premium amount to the insurance provider. You will have to continue paying this premium as per the stipulated timeline to avail the insurance coverage. The premium amount and coverage criteria will vary according to the insurance provider. You can do a comparison between different home insurance plans to find out which one fits your budget and requirements. Insurance companies offer different types of policies such as Building Insurance, Contents Insurance, Tenant’s Insurance, Landlord’s Insurance, Personal accident cover, Public liability coverage, etc.

 

Here are the major advantages of having home insurance policy coverage:

Provides financial coverage against calamities: While buying a new home you should consider availing a home insurance policy as it gives you financial coverage against natural and man-made calamities that damages your house. This can include calamities like floods, earthquake, storm, explosion, fire, electrical etc.

 

Coverage against loss of your valuable assets: Home insurance will also offer coverage against the loss or damage of your priced assets stored in the house. This can be as a result of theft or any other man-made or natural incidents. Personal assets like gold, jewellery, cash, furniture and other appliances will be insured under the home insurance policy.

 

Provides expenses for temporary living: If your house encounters structural damage and you want to stay in another house temporarily, you may be eligible to get the rental expenses from the insurance company. The terms and conditions may vary according to the insurance policy you have availed. So a home insurance coverage will help you to stay in a rental house till the time you get your house renovated and gets back to a good condition. This will save you from the additional financial burden of paying rent. 

 

Insurance companies also provide many other additional benefits for the insured apart from the above. Some insurance providers will provide you extra coverage limit, premium discounts and exciting add-ons to ensure a seamless living experience even amidst calamities. Many builders offer complimentary home insurance coverage for a specified time frame for the benefit of homebuyers.