Diwali, the festival of lights is celebrated by all as the occasion of homecoming of Lord Rama. Hence culturally it has been deemed auspicious to purchase a house at Diwali. A home is not just a structure, but also includes contents diligently acquired by the homeowner over the years.
As exciting as it all sounds though, homeownership is a major landmark in anyone’s life and like any item of good value, it also deserves proper protection. Given the times we live in, all the care and precautions we take to protect our home may not be enough to take care of unforeseen circumstances. It is therefore imperative for all homeowners to be aware of the risks and to mitigate them.
Let’s understand how in addition to the ownership of home giving yourself the gift of home insurance is one of the most sensible rewards for your long term financial security.
The risk vs benefit analysis of home-ownership
For homeowners, the risks can often and suddenly far-outweigh the gains if cautionary steps are not taken. For example, Diwali celebrations are often associated with bursting of crackers and lighting of diyas which can lead to untoward fire incidence and loss to a house.
The home insurance coverage also includes burglaries, theft, loss or breakdown of appliances etc. Which is why if there is a case of robbery/theft of your recently purchased Dhanteras jewellery, damages to home appliances like washing machine, refrigerator over the course of a fun party, or an unforeseeable short-circuit causing damage to appliances, a comprehensive package covers your losses best.
Most people purchase a home on mortgage wherein they save on the rent by staying in their own home but if some such unfortunate incidence of fire, flood makes the home uninhabitable, not only will they continue to repay their loan but at the same time they will also have to shift to an alternate accommodation on rent. This could place the homeowner in a difficult financial situation. To avoid such a situation, one can also specifically opt for rent for alternate accommodation cover following an insurable loss under the policy. This puts the owner in a financial position similar to that before the happening of such incidence.
