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Understanding Home Insurance Terms: Inclusions & Exclusions

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If you recently bought a home or owned a residential property, an insurance agent might have tried to get you to sign up for a home insurance policy. The much-needed security is yours with an insurance policy for home. Knowing that your dream home, your most valuable possession, is securely safeguarded during a crisis gives you some mental peace.

Here are some advantages and inclusions of home insurance:

1. Guards against financial losses brought on by natural disasters

By paying home insurance premium, you can protect your home against a variety of natural calamities, including floods, earthquakes, cyclones, and more.

2. Safeguards your home from man-made damages

In addition to natural disasters, your home may also sustain damage from human-caused events such as theft, rioting, terrorism, fire, and more. By choosing riders (add-ons) for your home insurance policy, you can shield your house against these damages.

3. Protects your valuables

An insurance policy for home covers structural damage to your house and your valuable possessions, including pricey items like your television, refrigerator, air conditioner, washing machine, furniture, and more.

4. Temporary relocation allowance

You may need to temporarily move to another property if a natural disaster damages your home while it is being repaired. Most home insurance policies include a temporary relocation allowance that pays your temporary housing rent while your house is restored.

5. Long-term strategy

The fact that home insurance policies are long-term accessible is one of their most significant advantages. You can acquire it for a longer period, like five or ten years, instead of renewing it annually.

6. Liability coverage

Imagine the following scenario: A guest at your house is hurt while they are on your property. The injured are provided with liability coverage through a house insurance policy. When harm or injuries are sustained by individuals or property close to your house, the liability coverage is also expanded.

7. Increases eligibility for home loans

Most lenders require you to have current insurance coverage for your house to apply for a mortgage. You can improve your chances of getting a home loan by submitting an application for a house insurance policy.

Exclusions: In general, none of the following is covered by home insurance policies:

Damages that result from improper use of a home appliance, wear and tear, war, nuclear assaults, invasions from other countries, and damage to antiques and priceless jewellery that wasn’t stated on the policy proposal form.

More minor damages, including wall fractures, paint scrapes, termite infestations, and cash theft during a house invasion.

Earth movement – Situations of damage caused by erosion or volcanic activity are typically not covered by the insurance policy. A separate rider can be purchased and added to the policy. Use a home insurance India premium calculator to understand the extra premium you would have to pay for this add-on.

If you neglect to maintain your property properly and it suffers damage. The policy may not pay for the damage if it occurs.

The insurance company would not pay for any willful losses, such as when a policyholder damages his property.

The equipment of a small business that operates out of your house is likewise not covered by your homeowner’s insurance policy.

Endnote

Purchasing a home entails a lot of responsibility, and you must always take precautions to keep it safe. It is advised to look online for policies, compare those offered by various home insurance providers, and select the one that is suitable for your needs.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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