Your home is probably your biggest investment, yet many Indians never insure it. Home insurance protects your house structure and contents from damage that could otherwise cost lakhs.
What Does Home Insurance Cover?
- Structure: Building damage from fire, flood, earthquake, storm, explosion or riots
- Contents: Furniture, appliances, electronics, jewellery and valuables
- Theft and burglary: Loss of household items
- Additional living expenses: Rent for temporary stay if your home becomes unlivable, in some plans
Who Should Buy It?
Homeowners with or without a home loan, tenants who want to protect their belongings, and people living in areas prone to floods or earthquakes.
What Is Not Covered?
Wear and tear, deliberate damage, war and nuclear risks, and losses due to poor maintenance are usually excluded. Always check the exclusion list.
How Much Cover Should You Take?
The sum insured for the building should be based on the reconstruction cost, not the market value of the land. For contents, add up the value of your belongings. Under-insurance can reduce your claim.
Cost of Home Insurance
Premiums are generally low compared with the protection, and depend on the sum insured, location, age of the building and add-ons. Many plans cost only a few thousand rupees a year.
How to Buy
- Calculate the value of the structure and contents.
- Compare plans from different insurers.
- Check add-ons such as jewellery cover or electronics protection.
- Buy online and keep a copy of the policy.
Tip
Maintain an inventory list with photos and bills of your valuables. It makes claims faster and easier.
Frequently Asked Questions
Is home insurance mandatory with a home loan?
Banks often require fire insurance on the property, but a full home policy gives wider cover.
Can tenants buy home insurance?
Yes, for their belongings and sometimes for liability.
Does home insurance cover natural disasters?
Most plans cover floods, earthquakes and storms, but check the policy terms.
