Why Do You Need a Home Insurance?

Insurance is a contractual agreement entered into by two parties: the insurance company and the policyholder. In this agreement, the insurance company collects a predetermined premium from the policyholder to provide coverage for their possessions.

Some of the common insurance options available are 

 

• Car insurance 
• Bike insurance
• Travel insurance 
• Health insurance

 

The primary goal of insurance is to provide financial protection for a person’s asset against uncertain events.

 

What is Home Insurance?

Home insurance from Shriram General Insurance provides protection for a residence against a range of man-made and natural disasters, as well as other associated threats. This protection is established through an agreement between the homeowner and the insurance company.

 

Various challenges, such as unpredictable heavy rains, sudden floods, fire, theft and more, can pose a threat to your hard-earned home. In such situations, home insurance becomes a crucial lifeline, offering coverage against mishaps. Although Home Insurance is not mandatory in India, it is highly advisable as a method to protect the financial investment in your home and ensure the well-being of your family.

 

Benefits of home insurance

Choosing home insurance provides several benefits, safeguarding your financial well-being and offering peace of mind. Here are some key benefits of having home insurance.

 

1. Protection for your home 

Home insurance provides coverage for the structure of your home, including walls, roof, floors and built-in appliances. This protection is crucial in damage caused by covered perils such as natural and man-made disasters.

 

2. Coverage for Personal Belongings

Home insurance includes coverage for your personal belongings, such as furniture and electronics. This ensures that you can recover the value of these items in the event of theft or damage caused by covered perils.

 

3. Peace of Mind

Knowing that your home and belongings are financially protected can bring you peace of mind. Home insurance alleviates the stress and financial burden from unexpected events, allowing you to focus on rebuilding and recovery.

 

4. Financial Security Against Unforeseen Events 

Home insurance acts as a financial safety net, ensuring you have the necessary funds to repair or replace your home and belongings in the aftermath of covered incidents.

 

5. Customisable Coverage 

Home insurance policies are often customisable, allowing you to tailor coverage to your specific needs. Depending on your property's location and potential risks, you can choose additional coverages, such as terrorism or earthquake cover.

 

Choosing the right home insurance policy and maintaining adequate coverage is a proactive step in securing your investment, protecting your assets and ensuring financial stability in the face of unexpected events.

 

Reasons to get Home Insurance

 1. Protection against Natural and man-made calamities

Comprehensive Home Insurance shields your home from losses and damages arising from natural calamities like earthquakes, floods, lightning, storms and typhoons. Additionally, it safeguards your home from man-made risks and anti-social activities such as strikes, riots, and other malicious acts. It empowers you to achieve financial recovery in the aftermath of a loss, facilitating the rebuilding of your home.

 

2. Protection against theft

Theft is another prevalent concern for homeowners, causing considerable anxiety. Fortunately, home insurance extends coverage to the contents against losses incurred due to burglary or theft.

 

3. Cost-efficient Investment

While the initial perception of home insurance might be viewed as an unnecessary expense, it proves to be a cost-efficient form of protection. Investing in a home insurance policy becomes invaluable when faced with the need for financial assistance. Many insurers nowadays provide home insurance policies at competitive premiums, and the coverage received in return makes these premium rates a worthwhile investment.

 

Benefits of choosing Home Insurance from Shriram Home Insurance.

Shriram Home Insurance offers the following coverages.

1. Home Insurance Coverages

Shriram Home Care Insurance offers coverage solely for the building's structure.

 

2. Building & Contents Cover

Shriram Home Care Insurance covers both the building's structure and its contents with its building and contents insurance.

 

3. Contents Only Cover

Shriram Home Care Insurance specifically covers the contents, offering protection exclusively for the belongings within the insured premises.

 

What are the Exclusions?

Shriram Home Insurance provides coverage for expenses resulting from damages caused by natural calamities such as floods and storms and man-made calamities like riots and strikes. However, specific exclusions are outlined below.

 

• Loss or damage resulting from the insured's intentional actions or severe negligence.
• Liability arising out of violation of any rules and regulations of the government or statutory authorities.
• If there is a loss or damage to any property covered by this policy due to a lack of cooperation, providing false information, describing things inaccurately, or not disclosing important information, or if a claim is made dishonestly or with fraudulent intent, the insurance may be affected.
• A decrease in the market value of any insured property after it has been repaired or reinstated.
• Coverage does not extend to damage resulting from nuclear hazards or war within the country. 

 

Conclusion

A Home Insurance policy goes beyond safeguarding the house from physical damage. It also extends coverage to items within the residence. A comprehensive Home Insurance policy includes protection against loss due to theft and burglary. Considering that Indian households typically contain numerous valuables, investing in a policy that covers these items is a practical decision.

 

It is crucial to emphasise the importance of obtaining high coverage that adequately protects all valuable items. Home Insurance policies operate differently than other types of insurance. In cases where a home and its contents are underinsured, the insurance company may perceive it as self-insuring against losses, leading to a proportionate reduction in the claim amount. To prevent such situations, it is advisable to assess the value of items in the house and factor that into the considerations when acquiring a Home Insurance policy.

 

FAQs

1. Why is home insurance necessary? 

Home Insurance provides reimbursement for your losses, which becomes especially vital in the event of damage caused by unpredictable factors like natural disasters such as earthquakes, storms, cyclones, floods, etc. These are unforeseeable events that cannot be predicted.

 

 

2. Who can purchase a home insurance?

Criteria for Purchasing a Home Insurance are listed below.

• The applicant should be a resident of India. 
• The applicant needs to own the residential property requiring insurance. 
• The applicant's age must be above 18 years. 

 

3. What is not covered by home insurance?

Some of the common exclusions include

• Intentional damage 
• Wear and tear
• Government violations