Why Get Home Insurance| North Loop Official Blog
North Loop Logo
North Loop
08 Oct 2020

Why Get Home Insurance

thumbnail for Why Get Home Insurance
Credit: North Loop

What is home insurance?

Home insurance is a type of property insurance that provides a cover against losses to your home due to natural or man-made events.

Why take home insurance?

If you are confused about which home insurance policy to go for or why take home insurance at all, then you should read the main reasons to have a home insurance policy that is listed below.

Coverage against fire - A fire can cause severe damage to both life and property. It is one of the most unfortunate and sudden causes of property damages that can happen due to a variety of reasons such as short circuit, burdened power points, decorative lights etc. A home insurance policy offers extensive coverage against damages caused by such unprecedented events.

Coverage against natural and other disasters - Natural calamities occur without any warning and can cause catastrophic damages. A comprehensive home insurance policy offers protection against damages caused by most natural disasters such as earthquakes, floods, cyclones and even man-made ones like thefts, vandalism, burglary and other malicious activities.

Coverage against damage to precious possessions - Extensive home insurance policy covers not just the structure of your house but also all the contents or articles present in it such as furniture, jewellery, electronics and other valuable home appliances.

Coverage of temporary living expenditure - If due to some unfortunate incident or unforeseen circumstance your house gets damaged to the point of becoming uninhabitable, the rent spent by you on living in another house/apartment gets covered by your home insurance policy. That reduces an enormous burden as you can then focus primarily on renovating or rebuilding your house with the insurance company taking care of your rents.

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

What is a home loan, and what does home loan cover?

Unlike home insurance, a home loan is a financing solution that you can avail to buy a house effortlessly. But other than purchasing a house property, what does home loan cover? A home loan can get taken not just for buying a house but also for its renovation, repair or construction.

Is home insurance mandatory?

If you have decided to buy home insurance for all the benefits it offers but are still wondering 'is home insurance mandatory', then let us tell you that it is not compulsory. This question also often comes up when you are considering applying for a home loan to purchase a new house. However, it is not mandatory to buy a home loan protection plan as there is no such regulation prescribed by the RBI or IRDAI. Purchasing an insurance plan is a personal choice. However, even though it is not compulsory, it is highly recommended because it provides several benefits to homeowners as we have listed in the points above.

Home insurance claim -

To apply for a home insurance claim, you should follow these steps -
Contact your insurance provider.
Arrange bills and receipts of services availed after an accident.
Provide supporting documents based on the nature of accident and extent of the damage along with duly filled claim form.
Wait for the surveyor to assess the damage.
Receive your reimbursement after the claim is validated.

Exclusions under a Home Insurance Policy -

Like all insurance policies, home insurance also has several exclusions which vary from company to company. Some of these exclusions are
Military attack
Damage due to nuclear activity/radiation
Act of terrorism
Civil war or insurgence
Intentional damage
Minor damages such as termite infestation, wall-cracks etc.

How to buy home insurance online?

You can buy home insurance online by following the steps below -
Explore and compare the different home insurance plans available online.
Find the home insurance policy that is best suited to you.
Choose an online platform where you can buy the policy.
Apply for the policy and pay premiums.

At North Loop, we understand the emotional and financial pain of reconstructing your house or reinstalling its contents after a calamity or an unforeseen event. That is the reason we ensure that we provide you with a hassle-free experience for both purchase and claim of a home insurance policy. The process is 100% digital, seamless and quick.
Click here to sign up and apply for home insurance now.

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.