If you are looking for homeowners insurance but are confused about whether the insurance will give coverage for natural disasters? How much coverage do you need? will the premium fit my budget or not? what all things will the homeowners insurance cover and what homeowner insurance not cover?
No need to worry this would be your one stop solution for all the major problems that are associated with homeowner insurance. If you are not aware then let me tell you that homeowner insurance is also known as Home Insurance, and in short it is meant to give coverage to your properties.
Buying or owning a house is a lifetime achievement that require a lot of hard work and your hard earned money, a home is a place where we make most of our memories and feel the safest in the world. However, the place we praise could get disrupted because of some unfortunate events like natural calamities- Floods, earthquakes, etc, theft, and accidents. In order to protect your home from such events homeowners insurance comes into play.
It gives the policy holder and his whole family a sense of security and peace of mind that even if something unfortunate happens they will get the coverage.
What Is Home Insurance?
Homeowners insurance also known as Home insurance is the insurance policy for your property which may include your house, apartment, or bungalow.
The insurance will give financial coverage to your property in case of theft, the expenses, and damages to your home or any insured property. It’s a kind of property insurance and is one of the various kinds of general insurance policies.
The Home Insurance Policy – Coverage and Exclusions
Home insurance can also be referred to as homeowners insurance. It safeguards your owned house, bungalow, apartment or even a rented flat against any potential risks.
It will cover the cost of damage caused by any unlucky circumstance. Home insurance may be claimed for damages resulting from the following reasons:
- Natural catastrophes such as hailstorms, windstorms, or lightning
- Man-made causes of problems such as riots vandalism, theft, or property damage caused by civil disturbances
- The damage is caused by road or rail construction
- The collision of an airplane or any other vehicle (not your own)
- Smoke or explosions or fire.
Homeowners Insurance Premium Prices in India
If you looking for homeowners insurance then you may look into this table to know about some of the big home insurance companies their coverage details.
Giving precise data on homeowners insurance policy’s premium is dependent on-
- Your Property Type: A home, Apartment, Bungalow its area cover, location
- Coverage Chosen: The coverage you have chosen for you homeowner insurance policy like for fire, theft, etc
- Companies Quotes: The price for the coverage may depend from company to company
| Insurance Provider | Plan Name | Sum Insured | Annual Premium | Coverage Details |
|---|---|---|---|---|
| Digit | Bharat Griha Raksha | Rs 1 crore | Rs 2,466 | Affordable premium with an effective annual premium of Rs 247 for each Rs 1 lakh of sum insured. Over 10 years, you spend Rs 24,660 for a protection of Rs 1 crore. |
| HDFC Ergo | Home Shield Plan | – | Rs 250/year | Coverage from natural calamities, theft, fire, etc. Offers discounts up to 45% including security discount, salaried discount, intercom discount, and more. Comprehensive coverage for building structure and contents. |
| ICICI Lombard | Complete Home Protect | – | – | Comprehensive coverage for home protection. |
| New India Insurance | Griha Suvidha Plan | – | – | Offers protection against natural calamities, burglary, theft, and more. |
| Bajaj Allianz | Home Insurance | – | – | Coverage for fire & allied perils, loss of documents, home burglary, personal accident cover, loss of rent, and more. |
| Bharti AXA | Home Insurance | – | – | Coverage for fire & allied perils, loss of documents, home burglary, personal accident cover, loss of rent, and more. |
| Cholamandalam | Home Insurance | – | – | Coverage for fire & allied perils, all-risk cover for jewellery, burglary & housebreaking, personal accident cover, and more. |
| HDFC Ergo | Home Shield Plan | – | Rs 250/year | Coverage from natural calamities, theft, fire, etc. Offers discounts up to 45% including security discount, salaried discount, intercom discount, and more. Comprehensive coverage for building structure and contents. |
What Does Homeowners Insurance Cover in the Policy?
The homeowners insurance policy will cover a variety of damages. For example, the damages caused by electric wires or lines as well as water pipelines or structural damage.
It also provides coverage for broken windows/doors/floors/walls. In addition to the home, it is also for loss and damage to the contents of the home. It is divided into 4 different types of charges on the property insured they include the following:
- Interior damage costs
- Exterior damage expenses
- Damage to personal belongings or assets from a residence
- Insurance for injuries to physical that might occur on the property damaged
Home insurance policies can differ in the amount of protection they provide based on specific elements. The coverage varies based on the type of house (rented/owned) and the size of the house. Other factors such as age, location where you live, the value of replacement, and the location, as well as the price of the belongings also play a role.
The history of your claim or the crime rate in the region may also play a role. It is also dependent on the type of insurance you select. It’s up to you to decide the amount of the premium and deductible you’re willing to pay.
A deductible is what that you must pay prior to making the claim if the premium amount is less than of. When the deductible is higher then the premium is lower and vice versa.
What HomeOwners Insurance Not Cover?
Home insurance can cover human-made and natural causes however, there are some accidents that are left unaddressed.
For instance, there’s no coverage given for any kind of intentional damage or damages caused by negligence or war or ‘Acts by God’. These are considered exclusions. Here are a few below:
- Any natural calamity including earthquakes, tsunamis, floods. They are not covered by home insurance policies as they are considered under the “Act Of God”. Some insurance companies may offer additional insurance coverages for these catastrophes in certain situations or tailored policies.
- The damage is caused by the lack of or no maintenance, and carelessness of the property
- No insurance coverage for damages caused by termites rodents, rodents and birds. molds, rot
- While there is protection from smoke and fire in certain circumstances but it’s not enough to cover the smoke from agricultural or industrial operations
- If damage is caused by a member of the home’s household intentionally or in error. For instance collisions with your car will not be covered by an insurance policy for home owners.
- Any destruction of property in accordance with Ordinance of Law or court’s or court’s
- Damage resulting from nuclear dangers or war within the country
