Why buying home insurance is sensible

Buying home insurance is as important as buying life insurance or medical insurance. This is because home insurance protects the home and hearth of the insured from unforeseen natural calamities such as fire, earthquake, flood, storm, lightning, etc. as well as man-made eventualities such as riots, theft, burglary, larceny, terrorism, etc.

A home insurance policy not only covers damage to the residential property caused by the natural or man-made disasters, but it also covers any damage caused to the household items such as furniture, fixtures, television, refrigerator, air-conditioner, kitchen appliances and other items, clothing, etc. Some of the policies may also cover jewellery and other valuables such as works of art and paintings. These valuables may be covered by the base policy or may be offered as an add-on by the insurer for an additional premium.

Usually, all home insurance policies provide coverage against damages to the structure of the house and the contents therein caused by natural calamities such as an earthquake, flood, storm, lightning, fire, etc. However, in the case of man-made disasters such as riots, theft, burglary, larceny, terrorism, etc. the coverage may be in-built if it is a comprehensive policy, otherwise, the coverage may be bought separately as an add-on with the base policy.

So, depending on one’s needs and the value of the contents, one can go for a comprehensive policy or buy a base plan and then buy specific additional coverage for specific contents as add-ons. However, buying home insurance is a must to protect your home and hearth from unforeseen natural and man-made disasters.