Home Insurance - Necessary?

[Omarion]

In the current harsh weather conditions, it has become necessary for every home owner to have home insurance. Special the homes located at the sea shore , area of volcanic activity and are with volatile weather. Similarly when you have bought your home , then you have to get home insurance as you are ignorant of building material.

[LouBekhira]

Last year my father had bought home insurance from ICICI which covers everything from structure, fire, earthquake, personal belongings....for 15years. I think it was around Rs 25,000 (one time payment). They will provide door step service.

[HarlinMiller]

I think it is wrongly termed as home insurance...It is called as Fire insurance.

House insurance is reffered when you also insure household articles (furniture , electronic items etc).

Surprisingly, Fire Insurance is not considered in financial planning. This covers ones home from all sort of perils including the acts of god (Earthquake, Tsunami etc). The premium for say 35-50 lakhs would hardly cost 1000 per year. If you take insurance for say 10 years at one shot then premium would still come down.

I had taken Fire insurance for my home and as a goodwill gesture informed some of my Collegues. Nobody took the insurance for the following reasons:

1. There is NO discount offered by agent (unlike LIC agents who offer discounts in the first premium which is actually illegal)
2. There is NO 80C Benefits so doesnt help Tax planning
3. There is NO "return on investment"

I did not bother to explain them the necessity and had no choice but to smile at their stupidity. One is open to pay 1000 bucks for a weekend movie which ultimately goes to actors/producers of that movie but when it comes to spending money worth for themselves, people seem to be uninterested.

It is hard to imagine the loss if you lose your home...You will still need to pay the EMIs..at the same time you will need to search for another home!

Any thoughts?

Note: I have taken Fire Insurance from United India Assurance. Basically you can go for any general insurance company like National/Oriental etc. But most of the time you will need to get the things yourself. This is because agents are not keen to sell this as these policies do not fetch them good commission.

[viktor07]

It's better to have home insurance as it is really important in our times. Home insurance provides you with assurance and you know that the house you have bought is greatly protected.

[dantino]

Is this Home Insurance have a connection on FOREX?? I mean is this possible on FOREX company? what insurance will you get on Forex Company? did anyone know?

[nickolay]

Think, that this thread is in the wrong section. As for the home insurance, I think it is really necessary nowadays. This will provide you with more assurance and will cover the costs if the house you buy is damaged.