The recent earthquakes in Nepal and the northern parts of India has led to the loss of thousands of lives. It has flattened homes, shops and offices. Similarly, the earthquake in Gujarat in 2001 had destroyed and damaged millions of structures in Kutch and Bhuj. Natural calamities, such as these, are a grim reminder of the fact that we need to take steps to secure our immovable property. When the dust has settled on the torn down concrete and mangled metal parts of the earthquake-hit regions, people will soon realize how difficult it would be to get back on their feet without the backup of insurance, especially while rebuilding their homes.
According to Mr. Sasikumar Adidamu, chief technical officer – non-motor insurance, Bajaj Allianz General Insurance Co. Ltd, “In India, in general the awareness as well as the penetration levels of insurance is very low. If we look at the insurance market, the penetration levels of home insurance is less than two per cent, this implies that the awareness amongst the general public on the availability of an insurance cover against earthquake is minimal as well.”
Most people consider home insurance an unnecessary expense, instead concentrating more on spending on décor and appliances for their homes. But, it is in aftermath of such tragic events that the importance of home insurance is understood. In this article, we list the key things that you must keep in mind when securing your home with insurance.
3 Key Home Insurance Benefits
Get Cover for the Home’s Structure and Contents
Home insurance is divided into structural insurance and contents insurance. While structural insurance covers the home’s structure, contents insurance covers the belongings within. If you own a home, it is best to buy a comprehensive policy that provides both. It should cover fire, burglary and natural calamities, and other risks. For example the Bajaj Allianz My Home policy provides complete protection for property and contents.
Most people avoid buying insurance for the fear of shelling out huge premiums. This, however, is not true. According to Mr. Tapan Singhel, MD and CEO of Bajaj Allianz General Insurance Co. Ltd., “The premium for a standard fire and perils cover, which includes natural and man-made calamities, is as low as Rs60 per Rs1 lakh. However, less than 1% of the people who can afford it have home insurance.” Compared to the amount you have invested in building and buying the house, this seems a pretty affordable solution for securing your home.
Select the Covers You Need
With home insurance, you get coverage for your home, jewelry and valuables as well as portable equipment. In addition, home insurance policies can be customized with add-on policies such as keys and lock replacement cover, loss of rent, temporary resettlement cover, etc. to suit your needs. Your home is the largest investment that you will ever make. With a home insurance policy, you can get peace of mind. Although it won’t prevent the acts of nature such as earthquakes from wrecking your home, it does put a safety net between you and the losses caused by the catastrophe.
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