Buying a home is often the largest investment in our lives, yet many homeowners overlook protecting it. While life insurance is widely recognized and purchased, home insurance is still a relatively new concept in India. However, securing your property against unforeseen events has become increasingly important.
A typical home insurance policy is not very expensive, usually costing around Rs 800–1,000 per ₹10 lakh of property value. It offers peace of mind by protecting your investment against damages caused by accidents or natural disasters.
Types of Home Insurance
Home insurance policies are generally divided into two categories:
- Building Structure Insurance
- Covers the structure of your home, including permanent fixtures and fittings.
- Only the cost of construction is covered, not the total market value of the property.
- Contents Insurance
- Covers items inside the home, such as furniture, jewelry, electronics, and appliances.
- Claims are paid based on the current market value of the items, minus depreciation.
Events Covered Under Home Insurance
Most home insurance policies provide coverage for:
- Fire and lightning
- Storms, floods, and natural disasters like earthquakes
- Bursting or leakage of water tanks and pipelines
- Terrorist attacks or explosions
Exclusions:
- Damage due to natural wear and tear
- Self-destruction or intentional damage
- Properties used for commercial purposes, plotted developments, or “kutcha” constructions
Who Can Take Home Insurance?
- Apartments or independent houses used for residential purposes
- Properties under construction or already constructed can both be insured
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