If there is any reason behind the home insurance not being so popular then it is – Lack of awareness, lack of awareness, and only lack of awareness. Every man nurtures a dream to own a house one day. For a lay man, it takes a whole lifetime of savings to get his house constructed at a good place. And, you can never predict tantrum of the natural calamities. The deluge of monsoon fury is one of such havocs that we have seen the last year which underlines the significance of home insurance in today’s risky life. Still, most people are unaware of the fact that anything like HOME INSURANCE exists.
It’s heartening to see that Housing finance companies have made it mandatory for home buyers to have home insurance. Not only are they protecting their interests, but also creating a higher level of awareness among home buyers for such under-marketed policies.
As part of their sale promotion initiatives, now builders send general insurance agents to the buyers after their deal is completed to assist them in getting the much needed but very much ignored home insurance.
Almost 95% of insurance customers who buy homes are unaware that there exists many umbrella covers or package insurance policies, which cost very low, but cover your new home against all perils and also includes many other sections like Burglary insurance, Personal Accident cover, Electronic equipment insurance etc. A Package home insurance policy, more often than not, will also cover the contents of your house like electrical appliances, furniture, furnishings and sometimes, jewelry too.
If you are a house owner, no matter which corner of the country you may be living in, you automatically require home insurance. However, with a multitude of companies, each boasting of offering the best policy than others, how to narrow down on the best one? So consider the best not the cheapest. Wider the coverage, greater is the financial security.
Home insurance policy does not cover the cost of land. It only pays you for cost of construction of the house which is arrived at by multiplying the carpet area of the flat with cost of construction in that city. So even if your house is on the tenth floor you would be paid for cost of construction. The floor of the building is not a consideration for cost of construction. In many cases a society takes a common cover for all the buildings of the society.
Specific covers are also available in the market. For example: L&T General Insurance offers a cover called 'Liability of Tenants to Landlord'. It protects you against legal liability arising from damage to landlord's property and permanent fixtures. This liability would be applicable if it is specified in the tenancy agreement that you as tenant will be held liable for any such damage.
Beside all the above reasons, a home insurance policy provides you with something invaluable, that is, peace of mind. You can rest assured, that in case any damage or destruction unexpectedly takes place, your insurance policy will cover you from any financial losses. The premium is peanuts compared to the total cost of the apartment being bought by the buyer. And such an offer comes with a tangible benefit rather than plain gimmick.