Home / Money / Personal Finance /  Know the types of home insurance plans you can choose from

Home insurance coverage helps protect your house from various possible threats, including damage from fire, theft and even floods. Here is what you should know about the various home insurance policies available in the market.

Comprehensive policy: It protects the building’s structure, contents, and occupants., said Naval Goel, founder and CEO of PolicyX.com, “The policy also covers any liabilities arising out of natural calamities, theft, burglary, etc., at your premises. However, it excludes any damage done willingly, pre-existing damages inhibited by the property at the time of policy purchase, manufacturing defect and any damage to the structure having a collapsible framework."

Home content insurance: In the event of loss or damage to things kept in the house, the policy reimburses the policyholder for the amount based on the market value—for instance, jewellery, electronics, etc.

Structure insurance: It guards the house against losses from structural damages. It also protects against robberies, thefts, terrorist attacks, and covers any damage to the roof or ceiling, kitchen and bathroom fittings, etc. The policy also offers riders that guard additional structures like backyards and garages.

Landlord’s insurance: Such a cover is beneficial for house owners as it entitles them to be insured against loss of rent in particular. It will also provide cover for public liability in the event of any damage to a third party due to untoward incidents.

Tenant insurance: Tenants can purchase this policy to insure personal belongings like jewellery, furniture, electronic appliances, and clothes kept in a rented place.

Besides these, several liability insurance policies are available based on your work and requirements. Some common forms of liability insurance are fire insurance, public liability cover and burglary and theft insurance.

Fire insurance: It safeguards your home from accidental fires and short circuits that can lead to massive destruction.

Public liability insurance: It compensates for expenses incurred due to unexpected accidents, such as tree falls or losses caused to third parties or guests.

Burglary and theft insurance: This policy reimburses the cost of valuables stolen from your home.

What you should know: One should compare different policies to understand various features, and discounts on premiums offered, said Tarun Mathur, chief business officer -general insurance at Policybazaar.com.

“Purchase a policy with a high sum insured. It would help when you consider the reinstatement value, which is the built-up area and the total cost for construction. This cover will ensure that you are well-protected in unforeseen events, such as the cost of rebuilding your home."

ABOUT THE AUTHOR

Navneet Dubey

Navneet Dubey is a personal finance writer and artist. Over the past decade, he has written feature stories on insurance, financial planning, lending and borrowing.
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