What does home insurance cover

Home InsuranceWith the gradual change in our lifestyles owing to heightened stress in day-to-day affairs, our dependence on machines and household goods has risen significantly.

Every Indian household today is unimaginable without an A.C., T.V., washing machine, microwave, music system, refrigerator, or dishwasher among a host of other appliances.

However, when you purchase an appliance, you have to keep in mind the wear and tear that machines go through and the maintenance costs associated with them.

Mostly, all appliances come with a manufacturer warranty period of at least one year, during which it takes care of the damages, subject to certain conditions. However, after a year, how do you plan to pay for the upkeep and maintenance of your appliances?

Should you simply extend your warranty? Or should you buy a householder’s policy or home appliance insurance policy?

Is choosing an extended warranty worth it?

An extended warranty is one option that you can opt for once your typical 1-year warranty period comes to an end. Your retailer might push you towards it, but it can often turn out to quiet an expensive affair.

Also, you must give a thought to the number of appliances you need to extend your warranty on as you have to do so individually on each good, which can turn out to be mighty expensive.

Do your household goods need coverage?

Depending on the nature of your home insurance policy, you can choose the cover for your products. To attract more buyers, retailers are selling insurance policies along with the appliances to reduce the hassles for consumers.

There can be several reasons that can lead to the damage of your household goods, whether it is owing to mechanical breakdowns or damages due to power fluctuations or physical damages, all of which are unforeseen and can lead to unprecedented expenses.

Also, there may be cases of theft or natural disasters, against which you can claim compensation if your home insurance policy covers it.

If you are looking for a tailor-made policy, which will hedge your household appliances against damages, you should weigh the insurance options and read the fine print carefully before you take the plunge.

Buying a home insurance policy

Home Insurance Policy is the best option for you if you have a host of household goods that you are looking to safeguard against damages, as individual warranty might be expensive.

The householder’s policy comes in a package, which will definitely reduce hassle of choosing separate policies. This policy will include a vast coverage, some of which include:

  • Jewelry and your valuables
  • Domestic appliances
  • Protection against damage by fire
  • T.V., DVD player, music system
  • Theft and burglary
  • Coverage of the building
  • Baggage Insurance
  • Insurance against personal accidents

Before you zero in on the policy you want to buy, make sure you assess your property and the extent of coverage you will need.

If you do not own too many appliances, or live in a rented apartment, there is no point in taking a vast coverage, as you will only incur extra costs.

Read the offer documents carefully to understand the nature of coverage. Alongside, different companies have different policies, so you must study before you buy one.

Claim for your home insurance policy

In case of damage to your house or household goods, you need to make a valid claim. Any damage due to personal carelessness is not covered by insurance.

In case there has been physical or mechanical damage to your household goods or damage by fire or even theft, you can claim your compensation.

In relation to damage to goods like your refrigerator or music system, you can make claims for reimbursement of the cost of repairing or seek compensation, in case there is complete damage of goods.

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