A home insurance policy is not a luxury but a necessity for homeowners, landlords, and tenants. It protects your home against the damage and loss caused by natural/human-made calamities like floods, fire, storms, earthquakes, thefts, robbery, etc. Adding to this, nearly all mortgage companies require the borrowers to have a full purchase price insurance of the residential that needs to be financed. Banks or lenders do not proceed with the real estate transaction without giving the proof.
Usually, landlords or homeowners insure the structure of a house against perils like floods, fires, etc. to secure it against damage cost. But the tenants should also get house insurance as it covers your contents against such perils. Even if your landlord doesn’t make it compulsory, it is a smart decision to buy a renter’s house insurance. This will not just secure your household contents against the damage cost but also strengthen your relationship with the landlord as there will be no clash on the recovery of losses in times of destruction.
What does the home insurance policy in India provide?
Home insuranceIndia can be personalized, depending on the riders or add-ons. Below are some of the coverage benefits of the policy.
Damage to the structure of the house – When a calamity like a hurricane, fire, lightning, or flood strikes, it can harm your entire house structure. At times, theft or robbery vandalizes your property, leaving it in an awful state. Hence, opting for house insurance can save you against the damage cost of repairing or rebuilding both the interior and exterior of the house. You can also seek an add-one cover for destructions caused due to floods and earthquakes in the same policy. Also, free-standing garage, sheds, and other such attached or part of the structure can be covered by taking additional riders.
Personal liability damage – A liability coverage protects you from any type of lawsuit filed by a guest if he/she suffers a physical injury at your residence. A home is a place where you invite your friends and family, on an off chance, if a calamity takes place causing injury to guest at your home and damage caused to your homes, this coverage will help you pay for their treatment.
Hotel or hose rent till the house is being repaired
Sometimes calamities leave your home completely damaged, which requires rebuilding or repairing the entire house. This may compel you to look for temporary accommodation at a different place. This component of a home insurance policy is known as additional living expenses. This type of cover reimburses the cost of rent you pay at a hotel room or other accommodation until your damaged residence is repaired.
Step by step guide to buying home insurance as a tenant
- Know your requirements for purchasing a home insurance
- Determine the amount of coverage
- Filter your search based on your requirements
- Shortlist the plans and compare them
- Choose a plan and read the details
- Fill and submit the required documentation
- Make online payment