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Home Insurance Policies The Best Way To Secure Your Abode

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Why home insurance policy?

Your home is your abode, a place that provides you security and stability. The best way to secure your abode is to purchase a home insurance policy. Home insurance policy insures your property from damage caused to your house because of various reasons. You may think that home is an immovable asset and hence most secure, so why should I waste money on home insurance. But have you ever paid heed to what may happen if your house is turned to debris in a minute because of earthquake, what if sudden fire outbreak turns your house into ashes, what if all your valuables are stolen when you are enjoying a vacation with your family in lap of nature. This is where home insurance cover comes into picture and protects your home and you from the sudden expenditure incurred in case some contingency occurs!

What all is covered under House Insurance policy?

If you have a pucca house then you can avail home insurance policy provided you are you using your residence purely for housing purpose and not any commercial use. The coverage is extended towards the following events:

a.Damage caused due to natural disasters
Earthquake
Lightning
Lanslides
Cyclone
Storms
Floods
Bush fires

b. Damage caused due to man-made eventualities
Fire outbreak
Riots
Aircraft damage
Missile testing operations
Fire

c. Loss of any content/valuables if you have opted for comprehensive home insurance cover

Would home insurance policy provide the cost of reconstruction of house in case of any eventuality?

Your home insurance policy will provide for the reconstruction cost to the extent of the sum insured. On submitting the bills the reconstruction expenses are reimbursed. The fees of professionals like architects, surveyors or engineers are also covered upto a certain extent.

How is the premium determined for home insurance policies?

The premium is calculated on the estimate of construction cost of the house. The area of the house multiplied by the construction cost per square feet determines your premium. For example, if the area of your house is 1000 sq feet and the cost of construction is Rs 1200 per square feet, then the sum insured would be 1000 *1200. That would amount to Rs 12,00,000.

The cost of land is not a factor while determining the reconstruction cost of a house and premium of the home insurance policy as construction has nothing to do with the cost of land.

In short, home insurance safeguards you from many natural and man-made perils. Get home insurance before becoming a victim of any eventuality.
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