Insurance Advice Guide

Homeowner�s insurance or home insurance is a kind if insurance that covers one�s private homes. This is very important, because it covers the home in case of natural calamities, theft, burglary etc. We invest lakhs and crores in our homes, hence it is essential to insure our property against all these disasters.

Home insurance can be taken for a particular item in a home, for all items, for the whole home, or for a particular portion of the home.. A standard home insurance policy covers structure of the home, protection for personal belongings, liability protection and additional living expenses that one has to incur due to living in temporary accommodation. Most of the home insurance policies do not cover damages due to the two most important natural calamities � flood and earthquake. The home owner has to buy two extra policies to get cover against these.



Some of the disasters that are covered in a standard home insurance policy are fire, lightning, winstorm, hail, explosion, riot or civil commotion, damage caused by aircraft, damage caused by vehicles, smoke, malicious mischief, theft, lava eruption, falling objects, heavy ice, snow, overflow of water etc.

Homeowners insurance is almost mandatory when the home is brought on a loan. The lender would definitely insist for a home insurance policy to be taken, because it is beneficial in more than one way. Even otherwise, risk of loss is higher if there is no homeowners insurance irrespective of the fact whether the home is bought with a loan or not. Homeowners insurance is catching up in the US market v

Renter�s insurance is also possible under this policy. Renter�s insurance provides cover to the personal possessions of the people who have actually occupied the building on rent. In most cases, the landlord�s policy alone is not enough to cover these, hence this arrangement at a rapid pace, due to the immense benefits offered. The only disadvantage in this, is that, it does not cover floods and earthquakes. However, the insured should exercise some prudence and opt for cover against floods and earthquakes through a separate policy, to get the best out of this policy.