Home Insurance: Benefits, add-ons, exclusions – Here’s all you need to know

Here are the popular add-ons of the home insurance policy;

In May 2020, West Bengal and Odisha fell prey to Cyclone Amphan, which created havoc. In July 2020, due to heavy rains, widespread disruption was caused in the states of Gujarat and Karnataka. The recent floods in Assam have also left many villages severely affected.

Thankfully, with a home insurance policy, you can protect your home and take care of financial losses, in case of such calamities. Parag Ved, Executive Vice President and Head – Consumer Lines, Tata AIG General Insurance, says, “With the recent spate of natural calamities wreaking havoc in many parts of the country, homeowners and renters should start considering home insurance as a necessity and should pay attention to its various features.”

He further adds, “There is a lack of awareness about home insurance in the country, which often leads to misconceptions, leading to people not taking the right insurance covers for safeguarding their home.” Having a comprehensive home insurance policy will protect your dwelling in case of both natural and man-made damages, and safeguard your home against multiple calamities. Additionally, while buying home insurance, it is imperative to check what all events are covered under the policy.

Almost all home insurance policies cover loss or damage to the building and contents due to fire, lightning, explosion, riot strike, flood, impact damage, earthquake, etc. In addition to these basic covers, it also offers optional coverages like additional expenses of rent for alternate accommodation, loss of rent, removal of debris, etc. with a minimal additional cost.

Ved of Tata AIG Gen says, “Along with what is covered under a home insurance policy, a policyholder can also opt for Add-ons with their policies depending on their requirement if need be.”

Here are the popular add-ons of the home insurance policy;

• Burglary and Theft cover covers damage or loss caused to the household contents and your home in the event of burglary and theft.
• Liability cover covers for any third-party liability expenses which you incur and also any medical liabilities arising out of injury to domestic help or any other third party.
• Electrical or Mechanical Breakdown cover covers for your domestic electronic and electrical appliance which will pay for any repair and service which you incur in case of breakdown of these appliances.
• Jewelry cover – All Risk cover for your Jewellery which protects it not only if a loss happens at home but also outside the home when you are wearing them.

Ved of Tata AIG Gen says, “Be prudent and safeguard your home, against most eventualities with a comprehensive coverage plan without compromising on coverage quality.” Additionally, read carefully the exclusions of the home insurance policy before purchasing.”

Here are some of the common exclusions in a Home Insurance policy that you should be aware of:

• Any existing damage which is already there prior to taking the policy
• Loss caused due to any Illegal or intentional acts by you
• Loss caused due to war or invasion, nuclear peril
• Loss due to any government order or confiscation