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What does home insurance cover?


 What does home insurance cover?
Home insurance covers a whole lot of things, including re-building your house to removal of debris, should there be a fire, earthquake, lightning explosion, aircraft damage etc.

Covering the house/home itself


Home insurance can cover your house itself, should an eventuality occur. A separate cover can be taken to cover the valuables inside your house.

But, a pure home insurance would cover the following.

Reconstruction Costs

Insurance companies would reimburse the complete costs of reconstructing your house, to the maximum extent of the sum insured. This would include the boundary wall as well. It's important to note that should you provide less cover, you would stand to lose, therefore it's imperative that the cover for your home be adequate to cover all aspects of re-construction and consultancy.

Professional fees for reconstruction

Of course, your home would need to be re-built and this would involve a whole lot of professional fees including professionals like architects consulting engineers, surveyors, etc. So, professional fees are covered by insurance companies, sometimes to the tune of 3 per cent of the claim amount.

Debris Removal

Insurance companies will also cover the cost of removing the debris from around your house. Here again there is a cap on the amount allowed for removing the debris. Most companies allow just 1 per cent of the claim towards debris remova.

Why you should take a home insurance?

Life brings with a lot of uncertainties, particularly related to fire hazards and acts of God like earthquakes. An adequate home insurance can cover a whole lot of things and prevent a financial disaster. Home is one's abode for happiness and security, which largely involves a life time of savings. It's hence advisable to cover your home adequately with a home insurance that would cover several costs during times of eventuality.

Read more about: home insurance
Story first published: Thursday, May 9, 2013, 8:54 [IST]
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