Have a home but not insurance? Alert! Get it now, here is why

There is no place like home in the entire world! Obviously, it takes a lifetime's worth of work and virtually a fortune to build one. Most Indians also believe that owning a house is a sign of wealth and prosperity. This is why unlike in the West, most families prefer to buy their own house, instead of living in a rented home, even though it may put a hole in their pocket. According to the Household Survey on India’s Citizen Environment & Consumer Economy (ICE 360° survey) conducted in 2016, 97 per cent households belonging to the bottom-income quintile (or the bottom 20% of India’s income distribution) live in their own homes.

While most of these families put their life's savings into buying or constructing a home, they are often ignorant towards its protection. Sushil Jain, Best Fin Consultants LLP, told Zee Business TV that most Indians think a security guard is enough to protect their house and that they don't need extra protection. However, there have been numerous cases in the past where even the guards have failed to stop a burglary.

And, what about the loss that occurs during a fire, earthquake or any other natural disaster? The guards are definitely not stopping this. In this case, the best and only possible option is to opt for a home insurance which provides you financial protection against all these unexpected things, 

"Home insurance is a service that not only gives you the security but also takes care of the expenses in case there is a loss. This is why people should consider this. It will allow you to go out of home more freely," Jain explained. 

Watch Zee Business TV show here -

What is covered under home insurance?

Jain said that home insurance provides you financial cover against theft, fire, earthquake etc. "In case you opt for home insurance, the financial loss in these cases is taken care of by the insurance companies. The smart way is to get the content of your home insured too. This covers the cost of products kept in your house as well," he said. 

Jain advised people to check the offerings of the policy before purchasing it. 

"Most policies offer you protection against natural disasters as well. But, you should check that before buying. For example, if live in the coastal area, you should opt for a policy that offers protection against floods. Similarly, if you live in an earthquake-prone area, you should take a cover for it," he said. 

"While opting for the insurance, you need to provide a list of contents kept in the house. In this list, you need to mention the estimated cost of contents. So, even if you are not at home, you will get paid for the loss," Jain added.