Discover the Facts About Home Insurance: Expert Advice and Insights

Homeowners purchase insurance to safeguard their investment, comply with mortgage lender requirements, and gain peace of mind. This coverage can be customized based on the structure, contents, and geographical location of the property.

Importance – Why home insurance matters today

In 2025, home insurance is more important than ever due to:

• Climate change and natural disasters: Increased risks of floods, storms, and earthquakes have made insurance essential.

• Rising real estate costs: Repairing or rebuilding homes has become significantly more expensive.

• Increased theft and vandalism: Urban and suburban areas are facing more property crimes.

• Mortgage lender requirements: Many banks require home insurance as part of home loan agreements.

• Remote work lifestyle: More people are working from home, making their home both an asset and a workplace.

Who it affects:

• Homeowners

• Tenants (for renters’ insurance)

• Landlords and property managers

• Real estate investors

• First-time homebuyers

Recent Updates – What's new in home insurance (2024–2025)

The home insurance sector has seen several updates in the past year:

• Parametric insurance trends: In 2024, insurers began offering parametric insurance for flood and earthquake coverage, where claims are triggered by a specific event (e.g., rainfall over 200mm).

• Inclusion of smart home systems: Some insurers now offer discounts for homes equipped with smart security or leak detection systems.

• Digital documentation acceptance: Policies and claim documents can now be stored and submitted through government platforms like DigiLocker.

• Bundled policies for housing societies: Several providers introduced group housing insurance plans for apartment complexes and gated communities.

• Climate risk assessment tools: Tools integrated with insurance platforms help assess risk for properties in high-risk zones before purchasing a policy.

Laws or Policies – Home insurance regulations and legal backing

While home insurance is not legally mandatory in India, several legal and regulatory elements influence it:

• IRDAI Guidelines: The Insurance Regulatory and Development Authority of India governs all home insurance policies, ensuring transparency, claim settlement norms, and consumer protection.

• Banking norms: Housing finance companies and banks may require fire and structure insurance as part of their loan terms.

• Housing society rules: In some states, cooperative housing societies are required to insure common areas and society-owned property.

• Disaster management schemes: Government schemes such as the Pradhan Mantri Awas Yojana (PMAY) encourage structural protection, although not mandatory, through recommended insurance.

Tools and Resources – Helpful digital platforms and services

Several platforms help users compare, buy, and manage home insurance:

Calculators & Checklists

• Premium calculator tools: Available on insurer websites to estimate costs.

• Home inventory checklist: Helps you list items and estimate content insurance value.

Online Portals

• Policybazaar.com – Home insurance comparison across providers

• Coverfox.com – Easy interface for purchasing and claim tracking

• Digit Insurance – Customizable home insurance plans

Apps

• ACKO app: Digital-first insurance management with claim assistance

• HDFC ERGO App: Submit claims, track status, and download policy documents

• DigiLocker: For storing official copies of your home insurance policy

FAQs – Common questions about home insurance

Q1. What does a standard home insurance policy cover?
A typical policy covers the building structure and optionally the contents against fire, theft, natural disasters, and certain accidents. Liability coverage may also be included.

Q2. Is home insurance mandatory in India?
No, it is not legally required, but most lenders insist on it when granting a home loan.

Q3. How is the premium calculated?
Premium is based on factors like the sum insured (structure and contents), location, property age, construction type, and additional coverage opted for.

Q4. What is not covered under a typical home insurance policy?
Exclusions often include damage due to war, wear and tear, intentional damage, or lack of maintenance.

Q5. Can I insure rented property?
Yes, tenants can insure the contents they own, and landlords can insure the structure.

Final thoughts

Home insurance offers a crucial financial safeguard in times of crisis. With the rising value of homes and increasing environmental risks, having a policy in place is both a smart and responsible choice.

Before buying:

• Assess the full value of your home and contents

• Use digital tools to compare multiple policies

• Read policy documents to understand inclusions and exclusions

• Store your policy digitally for quick access

• Consider add-ons like earthquake cover, burglary protection, or rent loss coverage

Whether you own or rent, protecting your home is one of the most important decisions for long-term security.