No announcement yet.

Benefits of taking Home insurance


Benefits of taking Home insurance

Last updated: August 14 2017
2 | Posts
4525 | Views
  • Time
  • Show
Clear All
new posts

  • Benefits of taking Home insurance

    Some of the benefits of taking Home insurance include:

    Cost of premium is small. The cost of the insurance premium in comparison with the value and cost of the structure and contents, domestic and electronic appliances, is less than one per cent.

    Policy covers a range of segments. Home insurance covers almost all kinds of catastrophic risks, from damages arising from terrorist attacks to breakdowns of water tanks. The choice is yours - if you think your home is not going to be damaged by a terrorist attack, you don't need to cover it. In case you are living in a rented house, you can choose to insure only the contents.

    Covers cost of temporary shelter. In case of fire or damage to your home, which makes it unlivable, the cost of temporary rental for six months not exceeding Rs 1 lakh will be covered.

    Buy it online. It is simple and easy to buy home insurance. You can buy it online as well. Just log on to any of insurance companies' websites and fill the necessary details to buy a policy.
    Last edited September 1 2007, 10:39 AM.
  • #2


    Re : Benefits of taking Home insurance

    What is covered:
    • Your insurer will cover losses to the structure and content of your home. The reasons could be man-made as well as natural calamities.
    • Covers losses owing to natural disasters such cyclone, flood, lightening and storm. Under man-made disasters, losses incurred due to fire, aircraft damage, riot, strike and missile-testing are included.
    • Want to opt for protection against earthquake and related tragedies?You have to specifically pick that option and pay an extra premium for that. Same is true of burglary and theft cover.
    • However, there are certain riders here. To claim losses under burglary, it must be insured that the contents covered — jewellery, precious stones, etc. — are kept in a locked safe.
    What is not covered?
    • Year after year, your property might undergo a depreciation in value owing to slow structural decay. You cannot claim losses for this under a property insurance policy.
    • Insurance providers do not offer cover in case your property is damaged owing to a fire caused by over-running of electronic equipment.
    • Even if you have bought a cover against theft, loss of cash is not covered in an insurance policy.
    • In case your property is damaged during an invasion by or war with a foreign country, no claims would be entertained by the insurance provider.


    • sunita3329
      sunita3329 commented
      Editing a comment
      Your home loan provider has already explained the several benefits that you will be able to enjoy if you bought an insurance cover for your home loan. In these uncertain times, it makes perfect sense to do so, you think, and rightly so. However, before you make a decision on this, here are certain points for your to consider. *Do not confuse property insurance with home loan insurance. While the former provides your property protection against damages, the latter covers your outstanding loan liability in case of death during the loan repayment tenure. You must also keep in mind the fact that your home loan protection plan does not provide cover in case of natural death and suicide. In case you want to cover losses caused by loss of job, critical illness or disability, you will have to pay an extra premium. *Home loan protection plans are one time-payment premium and you do not necessarily have to buy it. Do not buy a home loan cover unless you are absolutely sure that you need it. Even if your bank harps on the various benefits of the cover, it should be your taking the call. Be mindful of the fact that home loan protection plans are generally a third-party product and financial institutions earn a profit on selling them. *You can avail of tax deductions under Section 80C of the Income Tax Act if you are paying a premium for a home loan cover. This, however, does not hold if you have borrowed money from your bank to do so and the amount is included in your monthly loan re-payment outgo. *Do remember that if you pre-pay, restructure or transfer your loan, the benefits provided under the home loan protection plan cease to exist. The one-time premium has already been paid and any changes in loan repayment process would not matter. This also means that if you transfer your loan to another bank, the present cover will no longer be applicable. Same is true in case you extend your loan re-payment tenure; your policy might not be able to provide you protection for the whole term. *Your cover under a home loan protection plan is linked with the re-payment. This means the cover reduces along with the re-payment. Suppose a borrower took a loan of Rs 30 lakh and bought a home loan protection plan along. In case he dies at a time when Rs 25 have been repaid, the home loan cover provider would settle with the bank the remaining amount of Rs 5 lakh only. This is not true in case of a term insurance plan, which provides you a full cover. In a similar situation, a term insurance will provide the family of the borrower Rs 30 lakh.
Have any questions or thoughts about this?