Should you get your house insured?

In the general insurance space, health and motor insurance have a good amount of penetration. However, even in the motor insurance space, it is the third party insurance that has a higher amount of policies sold. This is for the simple fact that it is compulsory on the part of every vehicle owner to have third-party motor insurance. In all this, home insurance is something which is usually not taken so seriously by people.

People usually argue that nothing is going to happen and if something untoward happens then we have enough to fund it. However, just give it a thought, do you really have spare funds which can be used when such a situation arises? If yes then have you sat down and calculated how much do you require as against how much you have? Even if we assume that you have money to fund such requirements, most of the time, funding for such emergencies affects your financial goals, specifically those which are really needed. Insurance helps you cover a huge amount by paying a small amount as a premium to the insurance company.

So, let’s get back to the home insurance. What is home insurance? In a literal sense, home insurance is nothing but covering you against loss or damage against your house. Home insurance covers losses with respect to the structure of the house and contents in it against natural and man-made calamities. They usually include cover against fire and perils such as damage due to aircraft crash, fire, lightning, riot or strike, storm, cyclone, flood, missile testing operation, etc. They even offer coverage for any loss or damage to your house due to an earthquake. However, the thing to note is that there are many policies around that doesn’t cover flood or overflow of the sea, rivers or lakes due to an earthquake. The contents that are present in the house are also covered against burglary or theft. It also extends to silver articles, jewellery, precious stones and other valuable items, provided these are kept in a locked safe in your house. Though there are certain things that you should know which are excluded from the cover. Loss from wear and tear and depreciation, cash, damage or loss due to war, invasion or any act of foreign country, nuclear war, or loss, destruction or damage of any electronic equipment due to over-running or excessive pressure.

Why should you get your house insured?
Undoubtedly house is one of the costliest assets that you own. Any catastrophic events can shake the entire structure of your house which may likely make it completely unlivable. House insurance plays a crucial role to protect you and your house from such unforeseen events. The emotional and financial pain of rebuilding a house or reinstalling its contents is painful, difficult and may lead to financial stress. However, a comprehensive home insurance policy at such time comes to your rescue. Getting your house insured would help you in reinstating. Though it is to be remembered that inflation is not considered in the same. So, even you may need to pay some amount from your pocket in addition to the sum assured that you would receive. But then also it is wise to put some amount from your pocket then full amount. Having home insurance would also help you reduce your financial stress as well as help you in some way to protect the provision that you have made or are making towards your financial goals.