InvestorQ : Who should buy home insurance in India?
Monali Shah made post

Who should buy home insurance in India?

Answer
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Swapnil Sarang answered.
2 years ago


The most common answer to your question would be anyone and everyone who owns a home should buy home insurance in India. Yes, this is true. But it is not completely true. A home insurance is meant for any person residing in a house. You don’t necessarily have to own a home to be able to get a home insurance.

Thus, home insurance is meant for anyone who has a home, irrespective of whether the home is rented on not.

A distant relative of mine had shifted to Bangalore from Hyderabad. He rented a lavish three-bedroom apartment in a posh society. Three months after he shifted, a catastrophic fire gutted furniture and other appliances worth Rs. 10 lakh. Now Rs. 10 lakh is no small amount. But thankfully, he had a home insurance policy and he managed to settle back to normal life again easily, without any financial stress.

Thus, it is an absolute misconception that only house owners should buy a home insurance. The house you reside in might belong to your landlord, but the fridge, sofa, LCD TV set, etc might belong to you. So, irrespective of the fact whether you are a tenant or owner, buying home insurance should be your top priority, too.

Ensure, however, that you don’t fall in the discount trap that insurance companies lay for you. In order to boost their sales, insurance companies offer you discount on your next insurance policy if you’ve already purchased say four insurance covers already. If, for example, you are the landlord then avoid buying a policy to cover contents of the house. That should be the tenant’s look out, not yours.

Companies also tend to offer discounts if you buy a home insurance for a long duration. You can insure the house for up to 10 years, which will not only give you peace of mind for the long term but will also help you get discounts over your insurance policy.