When we build a house or buy a new apartment, we know the value of the money we have spent. So, we almost immediately take on home insurance. However, we also spend a great deal of money furnishing it and making the home more than just habitable. How often do we plan to insure these items as well? Almost never!
What would you do if you lose your precious belongings in your house? First of all, it would be a sheer waste of money. Secondly, you would have to go through buying everything again. Therefore, when you insure your home, it is important that you protect the belongings as well.
Home content insurance is a type of policy that covers damage to or loss of the things in your home that are not part of the building or structure. They enable you to repair or replace such lost items, without spending out of your own pocket.
What do Such Policies Cover?
Home content insurance usually offers cover for:
Goods Damaged due to Power Fluctuation – A power surge can damage your electrical goods and appliances, even if you have a stabilizer. And, in a country like India, voltage fluctuation is almost always a recurring condition. Expensive appliances like air conditioners, televisions and refrigerators are the ones that take the blow. It is therefore important that your home insurance plan also provides cover for these expensive items. Such appliances can also be covered against damage or loss due to a fire that is caused by a short circuit or voltage fluctuation.
Robbery and Burglary – India has one of the highest crime rates. And we hear of break-ins and burglary almost on a daily basis. Home content insurance ensures that you need not worry about the loss of goods in such situations. Items like jewellery, clothes and gadgets can be covered under such a policy. However, most policies mandate that you need to file an FIR with the police, before making a claim for the stolen goods. Burglary or theft for a servant/ house help or relative is usually not covered under the policy.
Natural Disasters – While caution can be practiced to avoid burglary and power fluctuation, we have no say against the wrath of nature.Floods, earthquakes and cyclones can cause damage to your house and its contents. However, for the effect of insurance to take place, local authorities must declare it as a natural calamity. Some policies also cover damage caused by man-made structures or things like an uprooted tree.