• Home insurance, property insurance or homeowner insurance is meant to safeguard your residence from damage. In India, it is not legally required to have a home insurance policy, although it is a necessary policy that should be obtained. Nonetheless, experts strongly advise acquiring one, as it addresses uncertainties such as natural disasters, fires, burglaries, etc. , which pose a risk to your most valuable asset.

What is Home Insurance?

• Home insurance or property insurance is based on an insurance policy that protects your home structure as well as personal belongings/content under coverage against loss from occurrences like fires, natural disasters, theft, and similar events. It also shields household members from legal liabilities. There are two types of coverage – building cover and content cover. The Bharat Griha Raksha policy offered by general insurance companies is among the most well-known home insurance plans in India.

Is it Mandatory by Law?

• At present, the Indian government has not made building insurance a compulsory requirement like motor vehicle insurance. However, banks or housing finance companies, which facilitate home loans, consistently require mandatory home insurance. According to multiple regulations from housing financing companies, home loan borrowers are frequently obliged to obtain at least a home insurance policy that matches the loan amount acquired for the house financing.

Why Should You Buy It?

Even though it is not obligatory, residents’ or property insurance is strongly recommended because, in the case of unfortunate events like floods, fires, thefts, and similar incidents that may damage your valuable asset, compensation is provided. With property insurance, it is quite simple to repair, rebuild, or replace your home at a minimal cost in such situations. It also covers a wide range of household items. However, if such incidents occur and you lack home insurance, then you will likely incur a very high expense out of your own pocket.

Conclusion

Ultimately, it can be stated that home or property insurance is not compulsory under current Indian law. Nevertheless, banks will require building insurance when you are a borrower of a home loan that is at least equivalent to the loan amount. However, it is always advisable to secure insurance for one’s valuable property even if it is not legally required, as it provides significant financial security against uncertainties related to property, as offered under the Bharat Griha Raksha policy.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.