Home insurance offers financial protection for your property and belongings in case of unexpected events like fire, theft, or natural disasters. However, not everything is covered under a basic insurance policy.
Understanding what is included and excluded in your home insurance can help you make informed decisions and protect yourself.
What is Covered in Home Insurance Policy?
The following are covered in the home insurance policy:
● Fire Coverage
Fire is one of the most frequent causes of home damage, and most home insurance plans cover it. If your home is burnt down, your policy typically pays for repairing or replacing the affected property.
Furthermore, most insurance policies cover incidental expenses like accommodation, temporary homes, and food if your home becomes uninhabitable.
● Natural Disaster Coverage
Some natural disasters are covered by home insurance, while others are not. Storms, floods, earthquakes, etc., are usually considered the most frequent threats. Your policy might also cover fire, smoke, falling objects, and even high winds.
Nevertheless, it is also crucial to note that many standard home insurance policies may not include certain natural disasters, so it is advisable to read the fine print.
● Flood Coverage
Home insurance generally covers flooding from internal issues, such as a burst pipe or overflowing toilet. However, some insurance does not cover floods caused by external factors, like rising rivers, flash floods, or sewer backups.
If you live in an area prone to flooding, consider adding flood coverage to your policy or buying a separate flood insurance policy. Moreover, if you have a mortgage, your lender might require you to get flood insurance.
● Personal Property Coverage
Home insurance protects not only your house but also your personal belongings inside. If your electronics are stolen during a theft or burglary or your furniture is damaged in a fire, personal property coverage can help cover the costs of repairs or replacements.
You can also add coverage for high-value items like jewellery if they exceed your basic policy limits, ensuring your valuables are fully protected.
● Third-Party Liability Coverage
If your neighbour or any third party suffers an injury or their property gets damaged due to something involving you, your home insurance policy will provide coverage. The amount covered may vary based on your policy, but your home insurance can also assist with legal expenses if the issue goes to court.
● Landlord’s Coverage
If you are a landlord, protecting your rented property is important. A standard home insurance policy might not meet all your needs, so getting landlord coverage is a good idea. This covers things like loss of rent and provides public liability protection for the property.
● Tenant’s Coverage
As a tenant, you can buy home insurance to protect the contents of your rented house. Instead of building cover, it is better to focus on content protection to secure your belongings.
What is Not Covered in Home Insurance Policy?
A home insurance policy does not cover certain types of damages, which include:
- Damages resulting from war, invasions, or war-like activities.
- Any intentional harm caused to the property.
- Losses due to contamination or ionising radiation are not included.
- Preparing a claim, including related fees and expenses, is not covered.
- Damage to items like bullion, unset precious stones, manuscripts, vehicles, and explosives is excluded from coverage.
- Any expenses for adding, extending, or altering the house beyond 10% of the existing carpet area at the start or renewal date of the policy are not included.
What are the Different Types of Homes Covered in Property Insurance Policy?
Property insurance can be tailored to cover all kinds of homes, whether you own or rent them:
● Individual Apartment
This option is for those living in independent flats, whether part of a housing society or a standalone building. Home insurance can cover your needs whether you own or rent the apartment.
● Independent Building
Suppose you and your family live in a standalone building. In that case, whether you own or rent multiple flats within it, you can insure the entire building under a single home insurance policy for complete protection.
● Independent Villa
Suppose you own or rent an independent villa or house. In that case, home insurance is essential to protect your property and its contents from burglaries, floods, storms, and other unforeseen events.
How to Estimate Your Home Insurance Premium?
The best way to estimate your home insurance premium is by using a home insurance premium calculator. This tool considers factors like the value of your property, its location, coverage limits, and additional options.
By entering these details, you can quickly estimate your policy cost, compare different plans, and choose the one that suits your needs and budget. Many home insurance companies provide online home insurance premium calculators to help simplify this process.
Home insurance is a must-have in terms of uncertainties since it guards your property against extra costs and damages. Before choosing a home insurance policy, it is crucial to understand what is covered and what is not.
You may also consider opting for multiple policies to avail yourself of discounts or cost-sharing on repairs to reduce premiums. This way, you will surely get the right cover for your home as the choices are well thought out.
