When it comes to buying a house, for most people it is considered as the largest investment. It is a herculean task that involves a lot of planning, saving, and research. But saving your long term investment is in your hand or can say that your prior responsibility.
And there is a simple solution to this called home insurance. Probably, when it comes to house insurance, 50% of people think that it is a waste of money. But it is not true. Whether it is a home or a vehicle, insurance plays an important role.
Importance of Insurance
The basic role of insurance is to make you financially whole following a loss. Today by just paying a little amount to an insurance company, will bear the burden of a large but uncertain loss in the future. There are many forms of insurance including auto insurance, homeowners insurance, renter’s insurance, and flood insurance.
So are you ready to take up a little expense to avoid a huge financial setback in the future?
Let’s consider the reason behind home insurance is important for homeowners:
- Liabilities Coverage
The first and foremost reason for buying insurance property is that it is provided liability coverage. The liability coverage covers you against personal injuries, property damage to guests. Moreover, this coverage is extremely important as it protects you and your house from any possible legal problems.
- Protection is not Just for Your Home
Most people feel that house insurance is just providing protection to your home but it is not true. It is because extensive home insurance covers all the components in your compound. This includes your garage, shed, deck, and even your fence. Besides, you can also add some clauses to protect your house content including furniture, electronics, and valuable home appliances.
- Coverage against Natural and Man-made Calamities
Another biggest reason for home insurance is to provide coverage from natural and man-made calamities. The loss is covered under natural calamities such as earthquakes, floods, lightning, storms, typhoons, and other geologic processes. Besides, property insurance also covers your house from man-made hazards and anti-social activities. This includes fires, groundwater contamination, transportation accidents, etc.
- Not too Much Expensive
As mentioned above, most people think that home insurance is too expensive but they are completely wrong. In terms of insurance benefits, it insured the amount of about Rs 40Lakh of the building. And for this, you just have to pay worth Rs.2000/ year as per insurance policy. Besides, the policy covers complete house contents that can be bought to worth Rs. 5000 per year. At such affordable rates, home insurance is not considered as an expensive deal.
- It Protects from Lawsuits
Another biggest reason that a homeowner should pay for home insurance is to protect you and your family from property-related lawsuits. It may provide coverage for lawsuits you may face as a result of an accident happening, including bodily injury to others on your property. Furthermore, it also covers medical expenses.