Home insurance provides coverage for any damages sustained to the construction or contents of a house during a calamity. Buying a home is no easy feat. Houses are very expensive due to the high prices of real estate in major cities. Many people put their entire savings on the line and take huge loans to afford a home. Added to this big price tag are the expenses involved in furnishing the place to make it liveable. Thus, it only makes sense to protect a home with adequate insurance so that you do not lose everything in case things go awry.
Now, most people have heard of home insurance. Yet, very few are certain of what the coverage entails. In this article, we answer 7 frequently asked questions on home insurance to help you get a better understanding of the coverage that you can expect.
1. What are the incidents covered under home insurance?
Home insurance covers losses sustained due to natural disasters and manmade calamities. This means that you generally receive compensation for the items included in the purview of your policy for damages that have occurred due to earthquakes, floods, fires, landslides, storms, cyclones, and robbery.
2. What are the items covered in a home insurance plan?
A home insurance plan generally covers household appliances like refrigerator and air-conditioner, electronic devices like smartphones and laptops, furniture, glass fittings, paintings, and sanitary fittings among other things. Do ask your insurance provider for a detailed list of what their company’s policy will protect for you.
3. Does home insurance include personal accident coverage?
Yes, a good home insurance plan should provide coverage for any accidents that lead to death, permanent/total disability and temporary disability.
4. Is there any kind of protection for my home loan repayment under home insurance?
Yes, home insurance generally covers you for your home loan EMI for a maximum period of one year. This coverage will be subject to the unique terms set by your home insurance provider.
5. Do domestic workers get covered under home insurance?
Yes, a home insurance plan covers you for any legal liabilities as a homeowner for damages sustained by a third-party in your property. You do get coverage for liabilities arising due to accidental death, injury or sickness sustained by domestic workers in your home.
6. Can a tenant buy home insurance?
Yes, it is wise to buy home insurance even as a tenant. As a tenant, your policy will cover you for any liabilities to the home owner due to damages to the home. For instance, you will be covered against any damages to the building’s electrical fittings that can otherwise cost you heavy.
7. Is jewellery covered under a home insurance policy?
Yes, all major general insurance providers include coverage for jewelry. There may be a limit to this coverage and this needs to be checked with the insurance company.
We hope these answers will help clear any doubts you may have had about home insurance. Whether you are a homeowner or a tenant, do make sure to get adequate coverage immediately. Take care.