Let's cross the bridge when we come to it! Sadly this adage defines the current state of buying home insurance in India. The catastrophic earthquake in Gujarat in 2001 resulted in mass devastation of life and property, and was an eye-opener for the masses. People understood the importance of home insurance but sadly it only lasted till the time their memory supported them. The flash floods in Uttrakhand in 2013, where again life and shelter was wiped away, left many people stranded without any shelter and they were at the mercy of the government/social workers.
As per the UNICEF, India is quite vulnerable to natural disasters. Approximately 80% of the geography is at risk of earthquakes, cyclones at coastal area and landslides. Your home which costs you your life's savings is definitely your most valuable possession and must be insured. The reconstruction of the house involves huge expenditure and this can be taken care of home insurance if something disastrous happens to your house.
Here are some details to help you understand the coverage provided under Home Insurance
Reconstruction Cost: Home insurance covers the reconstruction cost of your home in the following scenarios:
- Damage caused due to natural disasters such as floods, earthquake, and cyclones
- Damage caused due to man-made calamities such as accident resulting in destroying the fencing or fire break-outs resulting in structural impact
Coverage for theft: House insurance also provides for claim against theft/burglary of assets including jewellery. The house is embodiment not only to the family members but also many valuables. Hence, a comprehensive home insurance takes care of your belongings too.
Damage due to terrorism: Some insurance companies also cover damage occurred due to terrorist activities but not due to war.
Make an informed decision when opting for home insurance. Check various home insurance policies online to gain maximum knowledge and then decide what suits your home the best!
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