InvestorQ : What are the benefits of taking a home insurance?
Deepali Khupte made post

What are the benefits of taking a home insurance?

Samita Patil answered.
3 years ago
The benefit of taking a home insurance is pretty much the same as the benefit of taking a life, health, or auto insurance- it gives you peace of mind. Although peace of mind is intangible, it dictates how we live and the kind of life we create around ourselves.

However, there are other benefits one can reap of after taking a home insurance:

Protection from natural and man-made calamities: This is one of the most important aspect of a home insurance. A home insurance covers your house against losses and damages caused by natural calamities (such as earthquakes, floods, lightning, storms, typhoons, etc.) as well as man-made threats and anti-social activities (such as riots, vandalism, thefts, strikes, etc.) By taking a home insurance, you can recover from the loss caused and rebuild your home.

Protects not just your home

A home insurance policy covers all the parts of your compound like your garage, shed, deck and even your fence.

Protection from lawsuitsA home insurance policy can also protect you against personal injuries, property damage to guests or others (say employees) that might have been caused while staying in the insured house. This insurance provides protection to you and your house from any possible legal problems if anyone residing in your house choses to sue you.

Cover for loss/damage caused to your assets and personal belongingsHome insurance policies cover contents that are in your insured house against loss/damage The contents can include various valuable, expensive, and important belongings such as important documents, personal belongings including jewellery pieces, clothing, appliances, furniture, etc.

Getting a home loan becomes easierA few banks state home insurance as one of the major eligibility criteria for getting a home loan. Thus, banks would prefer lending to an individual who has a home insurance vis-à-vis one who doesn’t.

Cheaper premium rates Home insurance premiums often tend to be lower than other insurance policies. For an insured amount of Rs. 40 lakh of the building, you can get a home insurance policy worth just Rs. 2,000 per year. Additionally, the most comprehensive policy, which covers even the contents of the house, can be bought at an approximate value of just Rs. 5,000 per year.

Timely payoutsIn the unfortunate case of your house getting damaged, you and your family will get timely insurance payouts which will help you get on your feet and rebuild your house quickly.