The word Home not only describes a place but also a feeling when its said. The safe haven, it is one of the most precious possessions of a man. But how many of us do really think of safeguarding it in the truest sense.
In today’s age, where natural calamities and man-made destructions are becoming common, the one resort that everyone should opt for is home insurance.
An insurance policy compensates you against the financial impact that can arise following loss, damage or destruction of your property or your health or life.
It puts you in the same financial position after a loss or accident that you enjoyed before the loss. The same goes with a Home Insurance.
A Home Insurance can cover losses to the structure and contents of one’s home from any natural or man-made calamity. The disasters that can be insured against are fire, earthquakes, storms, cyclones, tempests, tornadoes, hurricanes, floods or inundation, lightning strike, explosion, landslides, impact by vehicles or aircraft, and bursting or overflowing of water tanks and pipes. However, care needs to be taken that only the cost of structure is insured and not the cost of land.
The two types of home insurance policies available are:
Building Insurance
Insuring the building or building structure is important since it protects the policy holder against inevitable losses in case the insured building is destroyed or debilitated in any natural or man-made calamities.
Content Insurance
Contents insurance under home insurance plans includes protection to movable goods, possessions or contents in the house; anything that is not a fixed part of the home, for example appliances, electronic goods, furniture and clothing etc.