Buying a home involves a life-long investment and lots of emotions. What it takes to buy a property monetarily can be expressed, but not the sentimental value. Owning a home without home insurance, on the other hand, is unfathomable. Most people say it is a waste of money for an unknown event. However, recent natural disasters and manufactured tragedies have painted a rather disturbing picture.
Home insurance is essential to protect your interests in the event of property damage or destruction, much as borrowers take home loan insurance to cover future financial risks to their families.
Why is Home Insurance Important?
Owning a home is a significant financial asset that must be fully safeguarded. In addition, most people acquire houses with home loans, which makes financial protection for your home even more important.
As the proud owner of your dream home, you may secure your investments by purchasing both home loan insurance and home insurance. Both insurances take similar criteria into account when calculating the policy premium. For example, it contains the policyholder’s age, medical history, policy term, and sum insured.
Additionally, loan insurance takes the home loan interest rate into consideration during the calculation of the policy premium. Most institutions allow borrowers to convert their insurance premiums into a sum that can be credited to their home loan EMIs. As a result, you can use a house EMI calculator to do the calculations before payout.
Some benefits of taking home insurance are listed below:
- The safety isn’t just for your house
A comprehensive house insurance policy protects your building and all of the components within your compound. You can also include add-ons in the policy to safeguard your home’s belongings. This includes electronics, furniture, home appliances.
- It gives replacement to your belongings
Getting a policy provides financial security to the policyholder coupled with the benefit of replacing your insured goods. Based on the policy, you can get the replacement of your damaged goods.
- Protects against natural calamities
Many borrowers may not have the funds to cover property damage caused by natural disasters. In addition, the costs of having your home repaired and the EMIs on your home loan are too high for most people to bear. This is where your home insurance coverage comes in useful and provides you with the finances you require.
- It gives peace of mind
A home insurance policy is not expensive and can be bought at a low cost in conjunction with a home loan. While utilising a house EMI calculator to compute your repayments, a modest extra sum to secure your home from any unexpected incidence is a bargain.
Many people want to buy a house, but only a few succeed. If you have purchased a property, it is a brilliant idea to safeguard it with financial cover in the same way you financially protect your family with home loan insurance. The good news is that most financial institutions offer various home insurance policies to their consumers. It depends on the needs and propert type. They also assist them in understanding the policy and help them in selecting the best coverage for their requirements.