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11 Benefits Perks of having building insurance

Posted by Royal Sundaram on 20 Apr 2018

11-Benefits-Perks-of-having-building-insurance

The recent fire at Kamala Mills in Mumbai is but a reminder of what havoc fire can cause. And that is just one of the many deadly perils threatening our homes. Following government mandated safety guidelines is a must and so is buying a building insurance policy—it offers financial safety and useful benefits. Here are 11 of them.

  1. 1. You get Extensive Coverage

A proper insurance for your building offers protection against a range of perils. The covers include natural as well as man-made scenarios. It is comprehensive, to say the least. Check out some of them:

  • Fire, lightning.
  • Riot, malicious damage.
  • Strom, tornado, flood.
  • Bursting/Overflowing of water tanks, pipes.
  • Burglary.
  • Missile testing operations.
  • Loss or destruction caused by leakage from automatic sprinkler installations.
  1. 2. Independent Houses are Covered Too

For the ones who stay in independent homes, a building insurance will provide coverage for the compound walls and the landscaping as well. You can set a separate sum insured for these along with the regular insurance for your building.

  1. 3. Choose a long-term tenure

An insurance plan which offers a long-term tenure option is beneficial. You have to complete the paperwork once and sit back and relax. With this plan, the tenure options range from one year to three years for contents insurance and up to 20 years for the building cover. Always choose the latter.

  1. 4. Increase your protection each year

The sum insured you choose is based on the reconstruction cost of the building. However, this sum chosen three to four years ago may not match today’s inflation. That is why this plan increases the sum insured by 10% every year. This is to ensure that any reconstruction claim can match the current levels of inflation.

  1. 5. Protection against Burglars

This plan provides coverages against many man-made scenarios.  A building insurance will pay for covers that prevent future losses arising out of a burglary. These include installation of security doors and CCTV cameras and repairs to doors, walls, or windows.

  1. 6. Avail Discounts on Tenure

This is an insurance policy that keeps on giving. If you choose not to utilise the escalation benefit (point 4), you can then make use of a tenure discount. Make sure to refer the policy document for the information of the discounts.

  1. 7. Household items Are Protected

With a home insurance plan, it is not just the building but the contents within as well that can be protected. While buying the plan, you can check the household items that can be covered under the plan. Here are some of the ones that can be covered:

  • Household items such as clothing, furniture, safe, utensils.
  • Household appliances such as TV, refrigerator, geyser, music system.
  • Jewellery and valuables.
  1. 8. Household Staff Cover via Personal Accident

An important and beneficial feature. If the household staff suffers a disability or passes away within 12 months of an incident which is covered under the policy, the insurance firm will pay a sum insured basis the limits mentioned in the policy document.

  1. 9. Helps with Compensation

The insurance company will assist with compensation to the household staff employed by the insured. This in the event of the household staff member(s) suffer physical injury or passes away in the course of employment.

  1. 10. Smart add-ons to choose

What is an insurance policy without smart add-ons? With building insurance, you get to choose add-ons that provide six months of rent for alternative accommodation in case the insured property is destroyed or damaged. Another add-on reimburses the insured for loss of rent if he/she sublets the insured property and it suffers damage or is destroyed.

  1. 11. You can buy it Online

Buying property insurance online is a simple affair. Visit the website, fill in the required details, choose the plan that suits your requirements, and pay using one of the many options available and your home is insured. It is simple and smart.

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