Buying a home is a costly affair. The hidden costs involved can add up to more than you can anticipate. Interiors. Exteriors. Furnishing. Plumbing. Heating. The list goes on. In addition to this, when a well-meaning person suggests purchasing home insurance, it can seem like the last thing you want to spend your money on.
If you’ve had similar thoughts, you’re not alone. In fact, sales of home insurance plans have been dismally low in comparison to the sales of housing units. This can be attributed to poor awareness of the products available as well as a misunderstanding of what getting a home insurance would entail.
Getting home insurance, however, is a must if you’re a homeowner. Here are a few reasons why.
Structural cover
Nobody is immune from the occurrence of calamities. Irrespective of whether they are man-made or natural, there’s only so much research one can do before purchasing the home in order to be completely assured that a calamity won’t take place.
Buying a good home insurance plan will cover your home from damage caused by natural or man-made calamities. Without home insurance, you make your home all the more vulnerable to forces beyond your control.
Safeguarding belongings
A home doesn’t just comprise the walls, floor, and ceiling. It is also characterised by the personal belongings of its occupants.
These belongings need to be safeguarded from threats such as burglaries or earthquakes. Home insurance plans can cover valuable belongings as well.
With content cover, one needs to disclose the total value of belongings to the insurer by submitting bills for the same. Some insurance plans factor in depreciation while others provide the value for the items in their new state.
Temporary living expenses
Home ownership is more often than not an experience with ups and downs. With owned homes, repairs and maintenance become the responsibility of the occupants. At times, the maintenance required could be major and necessitate short-term evacuation. For instance, pest control or major plumbing repairs. In such cases, the occupants may have to shift to a rented home temporarily.
Certain home insurance plans cover temporary living expenses. The maximum amount covered would depend on the clauses in the policy.
Other incidents
One can’t always anticipate what sort of mishaps could take place. They could even take place within the home. There may be chances where guests or temporary visitors may be injured while they’re in your home. In such cases, certain inclusions in your home insurance policy can protect you from the loss incurred if you are sued by the injured parties.
While buying home insurance plans, it is important to keep a few things in mind. Ensure that the time period is apt; the cover provided should meet your requirements; the fine print should be analysed carefully, and content cover should address your unique needs.
The instances described above could happen to any homeowner. It is, therefore, critical to get home insurance. It is best to consider home insurance as a long-term investment rather than an immediate expense. After all, your home is priceless to you and your family. Click To Tweet
This article was originally published on www.thehindu.com
