Essentials of Home Insurance Policy that You must Know About
According to the AON Benfield Catastrophe Recap Report, November 2015 the economic losses incurred after the December-January floods in Chennai surpassed Rs. 20,000 crores but the home insurance claims were barely around Rs. 2,000 crores which is extremely shocking. There were a lot of motor insurance claims but very less number of home insurance. This was really startling that people are ready to invest crores for their dream house but are not willing to spend a few thousands on home insurance. Why home insurance is important? As per the industry experts, home insurance is poorly sold in India. It accounts for less than 1% of industry premium in terms of sales. Either they are not aware or they don't see any risk to their property- be it fire, natural calamity , burglary or an act of terrorism. Any of these unfortunate events can create a big hole in the pocket as you run pillar to post for the repair work or replace the stolen or destroyed items. What are the different type of home insurance policy? To cater to the different needs of every individual, home insurance companies and banks in India offer a wide range of home insurance policies. Customers can go for a particular policy as per their requirements. The basic policy provides protection against natural calamities such as fires, floods, earthquakes, storms, lightening's and so on. It also covers the man-made causes such as explosions, riots, strikes, terrorist acts, etc. The premium of the policy is dependent on two factors- location of the insured property and the tenure of insurance. As a matter of fact, home insurance can have a tenure for minimum of three years to a maximum of 30 years.