How important is home insurance in India?

How important is home insurance in India?

How important is home insurance in India?

What is it that you like the most about your home: the sun-filled kitchen, the shiny marble floors, the entertaining lounge or the comfortable bedrooms? Either way, a home is adorned with so many memories that often people want to preserve the interiors from any calamity or mishap. The quality of real estate properties in India is improving by the day. Overall, with quite a few norms and laws, the real estate industry is using better quality products for the construction of the properties. The returns on these properties are also highly beneficial. Therefore, the number of investors from all over the world has been consistently growing and enjoying the benefits of real estate in India.

Although, the Indian government and the legal system provides support to the NRIs investing in India, the NRIs wish to secure their homes by the means of home insurance. But is the facility regarded as important in India? Makaan.com asked the home owners in India as to how important is home insurance in India. Most of the homebuyers are of the view that the home insurance in India can be ignored. As quite a number of the homebuyers are of the view that home insurance is important and should be considered, following are few details regarding home insurance in India:

Leading financial institutes and insurance companies offer home insurance schemes under which the structure and/or contents of the home are protected as per the preference of the owner. The home insurance policy covers damage done by natural calamities as well as humans. To elaborate, the policy insures the damages done from fire, burglary (covers theft of jewellery, silver articles and precious stones), riots, terrorism (Optional cover), earthquakes, flood, aircraft damage, hurricane, bursting of pipes, damage done by road vehicles, lightning, landslides and explosion of hazardous material.

The sum insured under the home insurance policy is for structure of the home; however, it is calculated according to the reconstruction value of the home i.e. the cost incurred after the damage and not according to the market value of the home. The reconstruction value is based on the material and labour used in the home. Similarly, while setting the value of the contents of the home, the future depreciation value is calculated.

Buying a home is one of the most significant financial investments that one ever makes; therefore, it is only advisable to do a proper market research and survey prior to finalizing anything. For more of such poll reports and to cast your vote in a poll, visit MakaanIQ.

Last Updated: Tue Aug 06 2013

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