Indian Real Estate

Importance of Home Insurance for Home-buyers


03, December 2025

Buying a luxurious home is a dream for any home-buyer. You must have researched many properties through numerous real estate websites and made inquiries about the property that fits your budget.

However, did you ever give a thought about the importance of home insurance while looking for your home?

Home insurance is an essential factor most people overlook while purchasing their home.

One in a million unforeseen events might happen around us. In contrast, a home insurance policy will come in handy while tackling unexpected expenses that might arise when any damage is caused to your new home. Home insurance policies are one of the crucial steps in securing your home.

Just locking your home doesn't guarantee your safety. There are many other factors that might go beyond your control. Some home-buyers might not realize the significance of taking up a home insurance policy.

So, if you are wondering what exactly home insurance is all about,

We will be offering you a beginner's guide about home insurance.

What is Home Insurance?

Home Insurance refers to a property insurance policy that assists you in safeguarding your rented apartment or your own home with belongings from unanticipated circumstances like fire, floods, burglaries, storms, and explosions.

Whether you own or rent your apartment, we suggest you have a home insurance policy covering all the loss caused by accidental events. A good house insurance plan will assess your home's worth, give suggestions on how to secure your home, and finally help you take precautionary measures to tackle unplanned events. The insurance policy will also save you from spending a massive amount on renovation or rebuilding your home structure from damage.

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How does a home insurance policy usually work?

You can start your home insurance policy by paying an initial premium amount to the insurance provider. You will need to pay the premium amount as per the stipulated timeframe to acquire the insurance coverage. The insurance coverage and the premium amount criteria will differ depending on your provider. You can analyze house insurance plans to discover the right insurance policy that fits your budget.

The premium amount for an old property will be higher when compared to a newly built home. Modern homes and apartments will be well-equipped with essential safety measures like security surveillance systems, fire extinguishers, etc. These mentioned safety measures will decrease the chances of electrical and environmental adversity.

Home insurance companies provide numerous house insurance policies such as content insurance, building insurance, tenant's insurance, personal accident cover, landlord's insurance, public liability coverage, etc. As a suggestion, it is preferable to initiate a conversation with a reliable home insurance professional who will tell you about these coverages and help you find the best option.

Types of Home Insurance Policies

Now, let us give you some insights about the types of home insurance policies or the items covered under a home insurance policy:

1: Dwelling Coverage:

Dwelling home insurance coverage is the foremost basic of insurance policies. The coverage protects the home structure, including walls, floors, ceilings, and built-in appliances. The policy covers uncertain events and helps to rebuild your home with adequate protection.

2: Contents Coverage:

The policy protects items that include furniture and clothing. This unique home insurance policy protects your house from damages like floods, fire, theft, and other mishaps. Some of your essential documents, like jewelry, portable equipment, documents, TV, refrigerator, etc., are covered under the contents coverage policy.

3: Standard Fire and Special Perils Policy:

It is a type of home insurance policy that a leading insurance company offers. The policy offers coverage against noteworthy perils and fire outbreaks.

Special Perils Policy and Standard Fire Policy can be purchased by home buyers or tenants who reside in a rented house. The insured sum for the policy can be calculated as Building-Cost of Reconstruction.

The Standard Fire and Special Perils Policy ensures the home is insured from losses and damage caused due to the following reasons:

(a) Natural calamities like fire, lightning, forest fire, earthquakes, storms, and floods.

(b) Damages caused by malicious intent and man-made anti-social activities like riots.

(c) Damages caused due to overflowing of water tanks, apparatus, and pipes.

4: Protection from personal accidents:

It is a property insurance policy that covers you and your family. A suitable compensation is given in the case of death or permanent disablement of the insured person due to physical or accidental injury.

5: Burglary Insurance Policy:

It is a house insurance policy provided for a house or business enterprise. The policy ensures assets like cash, valuables, or securities are stored inside a safe box. The Burglary insurance policy covers damage or loss caused to the insured property due to burglary or housebreaking.

Tips for selecting the best home insurance in India

Compare Home Insurance Policies Online

A comparison of home insurance policies will enable you to discover the best home insurance in India. You can pick and judge many home insurance based on varied features. While you compare home insurance premium policies, you can comfortably get the best coverage on your home insurance policy at an affordable price.

Check Coverage and Premium

You need to evaluate the risks your house might face in the future.

For example:

If you live in a flood-prone locality, you need to be assured that your home insurance policy will cover the risks.

Adding to the point, as mentioned earlier, it is advisable to check whether the premium meets your budget or not.

Check the Claim settlement ratio of the Home Insurance Company

Usually, an insurance company is judged based on the time the authority takes to settle a claim. The primary purpose of home insurance will not be satisfied if you do not get your claim settled within the timeframe. So, it becomes essential to ensure your claim settlement record of the home insurance company before selecting an appropriate insurer.

The reputation of the home insurance company

The foremost responsibility of a good insurance company is to ensure customer satisfaction. You need to make sure that the house insurance company provides efficient customer service representatives who are competent to offer quick solutions for your queries.

Choosing a home insurance company that assists you at any point in time is quite sensible.

Let us direct you to the main topic of discussion: the importance of home insurance.

Importance of home insurance

We will list a few essential points describing the importance of home insurance.

1. Home insurance protects the home and the contents:

The main characteristic of home insurance is to protect the home from the risk of damages caused by natural disasters or other factors.

2. Home insurance offers financial coverage against calamities:

While purchasing a new home, we suggest you consider acquiring a home insurance policy that gives you financial coverage on man-made and natural coverage that damages your home. You can initiate an insurance claim to get the financial support required to recover the loss from unforeseen events.

3. Coverage against loss of essential assets:

Home insurance will enable coverage from the damage or loss of your essential assets stored in the house. Personal assets like jewelry, gold, cash, furniture, and other appliances will be insured under a home insurance policy. So, if your house is under the threat of unforeseen events, you can claim insurance coverage.

4. The Home insurance policy offers expenses for temporary living:

If you want to stay in another house temporarily due to structural damage, you may be eligible to acquire rental expenses from a home insurance company.

According to the insurance policy you have availed, the terms and conditions may vary. So, the home insurance policy will assist you in staying in a rental house until you get your house renovated.

5. Additional Home Insurance Coverage:

Home insurance organizations offer additional benefits like extra coverage limits, exciting add-ones, and premium discount offers that ensure a flawless living experience. Many developers provide complimentary home insurance coverage for a specific timeframe to home buyers' advantage.

So, what do you feel about home insurance now?

Will you take up a home insurance policy for your brand-new home?

You need to acknowledge the terms and conditions and make sure that you check your home insurance policy every three to five years, as the prices for restructuring your home may appreciate due to the persistent increase in inflation.

If you have any questions about home insurance, drop in your comments below. We will be quite glad to help you out.

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