Your home is the most precious thing you will own – yet we insure our cars but not our homes. Many people think, what’s the worst that could happen? Well, government records show India has over 20,000 fire accidents annually. Over 1 lakh burglaries are recorded each year. We live in the most flood-prone country in the world. 48 lakh Indians suffer losses in disasters each year, worth ₹64,000 crore in total. Much of India is vulnerable to devastating earthquakes, putting 200 million people in over 100 cities at risk.

Home insurance can save you from financial ruin of losing your biggest asset for as little as five rupees a day. Read about some of the situations in which it can help you:

Repairing or rebuilding a damaged home

Basic home insurance will help you repair or rebuild a house damaged by fire, riots, lightning, storms, floods etc. Depending on the premium, the sum insured will be either the reinstatement value (i.e. construction cost of the house excluding the value of the land), agreed value (total price of your house) or indemnity value (construction cost minus depreciated value).

Repairing or replacing damaged appliances

Comprehensive home insurance also covers the contents of a house against burglary and mechanical/electrical damage. For this, you must correctly declare the valuation of all insured items and keep all bills and invoices. Depending on the premium, the sum insured will factor depreciation or simply reimburse you the reinstatement value (price as new) of the goods.

Temporary relocation and rental

If your property is severely damaged, temporary living expenses insurance will cover the rent and relocation costs for a temporary home until the reconstruction is complete.

Protection against liabilities

House insurance policies provide liability coverage which covers you against personal injuries, property damage to visitors and other third parties which they might have incurred while on your premises.

Home loans

When considering giving a home loan, banks tend to favour customers who have home insurance (it’s often compulsory) to ensure financial stability in the event of a loss.

Loss of rent

If your property becomes uninhabitable until it’s repaired or rebuilt, loss of rent insurance will cover the income you’ve lost due to tenants no longer paying you rent.

Accidents and disability

Under some home insurance packages, you can also make a claim for personal accident, for payment compensation for disability due to an accident suffered in the home. But make sure you're not using your home for commercial purposes as it might then require a merchant’s policy.