Mighty earthquakes have rattled our entire nation. Videos of massive buildings crumbling like a house of cards are going viral on social media by the minute. Schools in Ghaziabad and Noida have been shut down for 2 days after tremors threatened to cause destruction on Sunday as well. Therefore it is of paramount importance to safeguard oneself and loved ones against this natural mayhem. But what one doesn’t realize is the fact that one can insure one’s dream house as well for a very nominal cost.
A house which has been absolutely destroyed by the wrath of an earthquake can be easily rebuilt at an immensely nominal cost of Rs 6 to 12 per day. This nominal amount is the cost of procuring a home insurance policy. A major chunk of people consider home insurance a burden, an expense which they can avoid. But priorities need to be reworked for sure post the wreckage caused by earthquakes in Nepal and several parts of India.
Most people who own a house can easily afford to shell out the requisite premium for home insurance. But in India, less than 1% of such people actually possess a home insurance policy. A no frills and standard perils and fire cover, covers a slew of manmade and natural calamities. But people still steer clear of home insurance till date.
Home insurance doesn’t cover the value of the property but only the costs involved in rebuilding the destroyed structure. Costs of reconstruction varies anywhere in between 1800 to 3500 per sq.ft depending on the quality and type of structure. Thus a big 2000 sq.ft home can be easily insured for a whopping 35 to 70 Lakhs for a meager premium of 2100 to 4200 per year.
The costs of home insurance can be significantly lowered even further by purchasing a policy for a longer tenure, for instance 1 to 15 years. The contents of the house can be insured as well. The costs of construction are rising by the minute. So consider a scenario where your home is destroyed and you have to rebuild it from scratch all over again. Can you bear the exaggerating financial costs involved for the second time in your life? Most people can’t. Compare this to a situation where your home insurance policy covers every rupee involved in rebuilding the home of your dreams. Home insurance is the way to go any day of the week.
We Indians have a tendency to feel that we are immortals and nothing can cause harm to us. If recent tragedies are to go by then that is definitely not the case. It is always better to be safe than sorry. Plus buying a house is the biggest financial transaction one undertakes in his or her entire lifetime, so why not safeguard your biggest asset.
So be prudent and agile. Insure your home against earthquake and varied other calamities today and ensure a bright future for you and your family.