What is your most precious and costly asset? Undoubtedly, it must be, your house. In case your house gets damaged or destroyed, the emotional and financial pain of rebuilding a house or reinstalling its contents is painful, difficult and tedious. Home insurance is crucial in protecting you and your house from such unforeseen circumstances. Without it, restoration could be an expensive and financially stressful affair.


Home insurance covers the house and its contents against loss or damage caused by natural disasters (flood, storm, cyclone, etc.) and man-made calamities (theft, burglary, fire, etc.).

As with most insurance products, the value of a home insurance policy can only truly be appreciated when misfortune strikes. Therefore, it’s always better to be safe than sorry. Some house insurance policies charge an additional premium for coverage caused due to natural calamities like earthquakes or floods.


Here are four attractive features of home insurance:
  1. Home Insurance provides protection for the structure of your house. It equips you financially to recover from the loss caused by any calamity and rebuild your house.
  2. It covers temporary living expenses. This policy covers the rent expenses or hotel expenses until the house is rebuilt/repaired.
  3. Content Insurance i.e. insurance covers your personal belongings including jewellery, clothing, appliances, furniture, and other valuables
  4. Protects against liability for personal injuries or property damage to others for which you or your family members may be legally responsible.


It is important to note that home insurance policies do not cover any willful destruction of property, damages from wear and tear, money in the form of cash, antiques and collectibles and damages incurred due to war.

Let us tell you a case of Mr.Nikhar and how having a home insurance policy saved him during a crisis. Two months after Mr. Nikhar moved to a rented apartment in Mumbai, a catastrophic fire engulfed furniture and other appliances worth Rs 8 lakh. Thankfully, he had a home insurance policy and he easily settled back into his life without any financial stress.

You need to consider two factors when calculating the right home insurance cover. First, is the amount required to reconstruct your house from the ground up in case of a loss or damage. You can arrive at this by multiplying the built-up area of the property with the construction rate per square feet. Second, you must assess the value of contents and jewellery.

The age-old saying, “Home is where the heart is” stands true, especially when that home is the result of your hard-earned money. Your home needs to be safeguarded as much as anything else in your life.

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