When it comes owning any financial product, a home will always be one of the most prized and high-value assets for all individuals. Not only does it offer an emotional satisfaction, but it also comprises of nearly 60 to 70% of an individual’s wealth investment. Consequently, it comes as no surprise that, a home is the second most reliable investment asset.
With over 200 million plus homes in the country, India has become the second largest country in terms of home inventory. With the economy expected to grow at a healthy pace shortly and a reduction in borrowing costs due to the demonetization move, the home purchase will continue to witness an increase in the coming years.
While owning a home will always be a dream if not a priority for individuals, when it comes to home insurance, it does not feature at all on the priority list. The reasons may vary, but in today’s time, it will benefit you if you invest in a home insurance policies.
Here are some of the benefits you can enjoy through this type of insurance:
Vulnerability to natural disasters: It may come as a surprise that India is a vulnerable country to plenty of natural disasters. Research has indicated that more than 58.6% of the landmass is prone to earthquakes of moderate to high intensity. At least 12% of the land in India is prone to floods and river erosions. Even 5,700 km of the 7,516 km long coastline of India is prone to cyclones and tsunamis. Additionally, the hilly areas are also facing risks of landslides and avalanches. However, the awareness of home insurance is relatively slow. It is estimated that only a small fraction of Indian homes have some form of home insurance. This insurance will cover damages caused by these natural disasters. In the event this disaster affects your home, you do not have to bear the entire cost of reconstruction of the house.
Provides the ideal coverage for homes within your home too: Having a majority of your wealth such as your home or any of your household articles insured can put you at a risk of significant losses. This, in turn, can result in emotional setbacks. Home insurance plans will not only protect your immovable wealth from such perils and natural calamities, but it will also protect your home items. In other words, it will also offer the ideal protection against items such as jewelry, clothing, electronics and much more. The ideal home insurance policies will provide you with the ideal protection for both your and your home items.
Various options available: Just as your financial needs and habits will differ from person to person, there are plenty of home insurance plans available in the financial market. You can easily opt for one that will suit your needs while offering you the ideal protection for the right price.