Buying a home is an arduous task. Right from searching, shortlisting, finalising, arranging finances and finally moving in, is worth the effort. It does not matter whether you buy a house in a metro or non-metro city, the process more or less remains the same. While one might think that your responsibility ends when you arrange the necessary finances for your house, it does not actually. It further extends to ensure that it remains well protected.
Be it a one-bedroom kitchen or a lavish multi-storied bungalow that you always wanted; it is among your most prized possessions. You invest all your life savings in a house where you finally can have a peaceful sleep. So why not insure it? There have been instances in the past that have left people homeless like the Chennai floods of 2015.
Home insurance not only protects your house but also all the appliances. Along with that, full-fledged home insurance will also provide a cover for accidents that might occur.
While it may be essential to opt for one, people prefer to defer this decision and regret later. Some of the reasons are imprudent, while others are ignorant about the availability of such an insurance policy.
Let us look at five such reasons why people ignore a home or householder policy –
Tenants do not own the property so they need not buy home insurance
A home insurance policy that is availed by the owner does not cover the belongings of a tenant. This leaves the tenants appliances and furnishings uninsured and exposed to risk. This risk, for example, maybe in the form of a fire which might cause damage to the rental unit or spread in other units too. At such times, without a home insurance policy, the cost of repairs, including other apartments, will have to be borne by the tenant.
The premiums for home insurance are very high
When you buy a house worth lakhs and at most times borderline crores, it is unreasonable to term a premium that costs a few thousands as expensive. At most times, we spend a couple of thousands in furnishing the new house just for aesthetic appeal, whereas the same can be invested in a home insurancepremium. It is an investment that will offer protection in the long run.
The claim settlement is not so easy
While this can be addressed as a problem of the yesteryears, it is not the current scenario. At present, most claim applications are made online, and the process has smoothened out to accommodate more claims swiftly. The same is the case while searching for an appropriate plan. One can make use of a home insurance premium calculator to estimate the amount of premium while checking for the various available plans and add-ons.
The rare nature of natural disasters makes it not so important to buy home insurance
This is sheer negligence that cannot be let loose. Although the occurrence of a natural disaster that has an impact of destruction to your property is not common, home insurance not only protects against natural disasters but also any accidents that might occur due to one’s mistake. Theft, burglary, domestic fires are also covered under your insurance plan.
Home insurance policies do not provide adequate coverage for high-value properties
It may not be true that the coverage is limited, but selecting the right insurance plan from the plethora of options will ensure you have adequate cover to your condo. While choosing the appropriate plan, make sure to tune it up with an add-on that offers a wholesome coverage for your upmarket property.
Now that you know the most common reasons that you might hear to put-off home insurance make sure you do not adopt one of them. Instead, insure your house for peace of mind.
Also published on Medium.