Home insurance cover against theft and damage

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Do you own a house? Ever thought about insuring it? Home insurance, sometimes also referred as homeowners insurance, provides a cover for house property against hazards. Typically, covered elements include losses to your home, its contents, or loss of other personal possessions of the homeowner. Usually, the policy does not cover damages owing to natural calamities. To get an insight into what is actually covered and what needs additional fees, the applicant must meticulously go through the terms and conditions of the lengthy contract.

Homeowner’s insurance is slightly differently from home loan insurance. You must be aware of this difference before going out in quest of a good umbrella of insurance. Ram owns a two bedroom house in the heart of the city. He makes an EMI payment of Rs 20,000 a month towards his home loan. He is the only earning member of the house.

He is worried about what would happen in case something unfortunate happens to him. Home loan insurance cover is a plan that protects a home loan in case any unforeseen event happens to the borrower. For those burdened with such worries, this cover provides the much-needed assurance and peace of mind.

The dependent family will have the support of the insurance cover to pay for the outstanding home loan, without being burdened by the monthly EMIs. The latter is the protection for the home loan. Here, in case of death, permanent disability or accident, the insurance company will clear the loan. The former covers the house and its precious little contents.

Customers are offered the option to buy insurance for only the building structure or opt for a cover only for the contents or both. Usually, fire, malicious damage, earthquake, explosion, storm, cyclone, landslides, rock slides and burglary are covered. In case of theft, the contents of the home are also covered including loss of jewelry, silver articles and precious stones kept under lock and key. There will also be a limit for compensation that will be given. Are you paying a higher premium? The home insurance policy is usually a term contract that stays in effect for a fixed period of time. Premium is the amount the insured pays to the insurer.

If the insurer perceives that it is less probable that the house will suffer damage, than you will be charged a lesser premium. However, if you live in an earthquake zone for example, you premium is very likely to shoot up. An applicant must thoroughly go through the terms of contract and insurance agreement details. Homeowner’s cover can make up, if not fully at least partially, in case of any damage or destruction to your property and its content.

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