Home Insurance: To Buy or Not and What You Should Consider

Updated on: 29 Dec 2023 // 3 min read // #mmm news // Home Loans
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Did you secure your home? This question may seem baffling to many. Securing life and health with some insurance policy sounds feasible. But securing a home and its assets may seem an unwanted expenditure! Should you buy a home insurance policy or not? Do not confuse it with a home loan insurance. Both are two different covers. While the first covers the replacement cost of your house owing to possible damage by fire or other unfortunate accidents, the second covers only the outstanding loan liability.

Depending on the service provider you choose and the type of policy you buy, your home insurance policy will cover only the construction of your home, not the land or plot. Irrespective of whether you own a villa in an independent plot or a flat on the 10th floor of a building, your policy will cover the construction costs incurred. It will also cover personal belongings and other assets within the home premise provided you buy a comprehensive plan.

Why You Should Buy a Home Insurance?

News about flood causing damage to homes hits the headlines every rainy season each year. The growing rate of recurrence of natural calamities like tornadoes, wildfire, hurricanes, earthquakes, etc. is affecting many. The damage caused by such calamities may range from complete or partial destruction of the home’s structure to loss of personal belongings. Those affected face big financial setbacks. For many, it is years of savings that has led them to build or buy homes. And such destruction shatters their dream, leaving a big hole in their pockets. There can be no bigger asset than a home. What about accidental fire, burglary, theft, and other losses? Here lies the importance of buying a home insurance that covers the replacement costs of the damages caused or things lost.

If you have bought your dream home on loan, it is advisable to buy a policy to secure it. The hefty Home Loan EMI may prove to be a financial burden for the principal bread earner of the family. Families with dual incomes gain a competitive advantage of facing a lower burden. But life indeed comes with risks. An accident or sudden death of the principal bread earner may negatively impact the family income leading to the inability of repayment of the loan. With a Home Loan insurance, which covers only the outstanding loan liability, such risks can be dealt with.

What Should You Look for When You Buy Home Insurance?

If you do not read the terms and conditions or fail to make a comparative analysis before buying your policy, you will end up regretting later. Why worry when such information is available with a click of the mouse or a touch of your fingertip on your smart phone? All you need to do is visit a portal that hosts several banks and facilitates fast search and comparison analysis. Not all policies cover all sorts of damages or loss. And the cost differs too. Besides, there are two key types of policies, viz. basic and comprehensive.

Taking the right buying decision will help you gain the benefits of a home insurance policy. Lack of research and comparative analysis before buying will seem like a waste of resources!

If you want to buy a house of your dream, but falling short of funds, mymoneymantra, the leading financial services provider can help you get access to over 60+ leading banks and financial institutions to get you a perfect Home Loan. Call us toll-free at 18001034004 to get best Home Loan offers.