Things to consider while buying home insurance to protect your property against earthquake damage - Complete guide
Earthquake: Home insurance is known by several names – house insurance, property insurance, building insurance, or homeowners insurance.
Earthquake: Several earthquakes shook India in the recent past. According to the government of India, approximately 59 per cent of our country's land area is susceptible to earthquakes of different degrees. Cities and towns in eight states and Union Territories fall under zone five, with the greatest risk of high-intensity earthquakes. There are 5 zones, which has the highest risk of fatalities, followed by zone four, three, and two, with the lowest risk.
This natural disaster can destroy homes, cars and other properties. One can always choose to consider home insurance. Home insurance is known by several names – house insurance, property insurance, building insurance, or homeowners insurance. Home insurance is essential to protect the home from natural calamities. The duration of insurance depends on the bank or company.
What is home insurance?
- Home insurance provides protection from financial loss. There are several banks and companies which provide insurance. The home insurance policy will cover following things:
- Damages caused to the interior of the house.
- Damages caused to the exterior of the house.
- Damages to items like heirloom jewellery, and antiques that have not been declared in the policy proposal form.
- Damages due to animals that you keep at home
- Damage or loss due to running electric equipment at excessive pressure or in the wrong way
- Loss of cash at home due to theft or burglary
- Temporary relocation
- Liability protection
What to consider before choosing the home insurance
- While choosing home insurance one should consider the capacity to spend each month. If the monthly income is high then one can opt for a shorter tenor. If the income is modest one can go for a longer tenor.
- The maximum loan tenor most lenders offer is around 30 years. The more is your age, the shorter your tenor will be and the higher your EMIs.
- While buying an insurance policy, it’s important to understand that you would not require everything. So, once you have an understanding of the requirements customize the home insurance plan accordingly.
- Understand the home insurance benefits, and features, and compare the quotes to have an idea of the premium that you would end up paying. Diligence plays a key role in buying insurance.
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