Saturday, 24 October 2020

Why Home Insurance and Car Insurance is Important?

Importance of home insurance in life


For the protection of property from the risks due to natural as well as unnatural calamities such as theft, damage caused due to weather and fire, property insurance is always required. Many specialized forms are included in property insurance. One of them is home insurance which is also commonly known as homeowner’s insurance or hazard insurance. It is one of the types of property insurance it is beneficial for the protection of private homes.
Why Home Insurance and Car Insurance is Important?

This insurance policy includes various protections of personal insurance such as home loss and its contents, loss of additional expenses of living, and the loss of other personal goods of the owner of the house. Somewhat, the dwelling policy is similar, but is used for the residences for reasons like vacancy or age. It is a multi-line insurance and covers property as well as the liability and for all risks, a single sum of money is paid.

The cost or charge of the insurance is based upon the cost of the house along with the additional goods and household things that need to be insured. The policy contains a contract which is quite lengthy and it includes the names of all the goods for which money will be paid or not. The cases of war, nuclear explosion, or flood are excluded from the insurance contract. In this case, there is a separate insurance policy called flood insurance.

Normally, home insurance is a contract and the terms in the contract are fixed that is, it is valid for a fixed period of time. Premium is the payment given by the insured for insurance to the insurance company. If there is a low level of risk involved, then the insured normally pays fewer premiums to the insurer. International Standardisation Organisation currently has eight standard insurance policies for home. These policies differ with the amount of goods in the house that needs to be included in the insurance contract list. It ranges from few goods to the entire house including all the household utensils.

The first homeowners’ policy was introduced in the United States in the mid-twentieth century. However, before that, there were several insurance policies regarding home in which the customer has to purchase separate insurance policies for thefts, personal loss, fire, etc. But then, there was the development of the policy forms and home insurance policy containing the insurance policy of the entire home and household utensils was introduced.

According to the survey, around eighty-three percent of house and household things are covered from the insurance policy. Presently, there are various national and foreign households’ insurance companies that have been established in the business market. These are Bajaj Allianz, HDFC, and many more. Now there is also the provision of online insurance in the market.

Why Car insurance is Important as Driving a Car?

In this era of increasing population and equally increasing traffic, having a car has become a very high risk and there is no sort of guarantee what would happen while going on the road. With the rapid growth of the number of vehicles on the road, the cases of insensible and rough driving have also increased. Hence, car insurance has become a very crucial part of maintaining a car and minimizing the risk of losing an asset such as a car.

The insurance of a car has to be purchased. Its basic use is that it gives financial protection against any physical damage or accident that occurs on the car while drive or any other means. Unfortunately, if any car goes through an accident, then the insurance companies can be claimed for providing financial support for repairing the car or buying a new one.

It is compulsory to have insurance of the car in many of the jurisdictions before the car is drove or used on road. Some jurisdictions also include insurance of the car and the driver as well. But these jurisdictions vary greatly from place to place and time to time. The insurance companies are mainly provides funds for the damages caused by the natural or man-made calamities. Be it commercial use or personal use, insurance of the car or any vehicle is a must. In India, the claims of car insurance can be accidental or also theft claims.

There are certain documents that are required to claim car or any vehicle insurance in India such as Registration Certificate copy of the vehicle, duly signed claim form, driving license, policy copy and also the First Information Report copy. There are various types of auto insurances in India such as car insurance, two wheeler insurance and commercial vehicle insurance.

The cases of mechanical and electrical breakdown or failure are not considered by the insurance companies. They also do not consider the accidents which occur outside the geographical area or if the driver was drunk.

Many foreign and Indian companies have been established in the insurance market these days. The leading car manufacturer companies have tie-ups with the insurance companies and the buyers find this more convenient. They get the provision of car insurance as soon as they purchase it. Some amount of money has to be deposited to the insurance companies by the customers annually for insurance and this amount of money usually keeps on decreasing with every year of deposition.

Presently, there are several auto insurance companies in the market such as TATA AIG, Bajaj Allianz, ICICI, Maruti Insurance, and many more. The facility of online insurance is also available now by many renowned insurance companies. Thus, the process of purchasing insurance has become easier and simpler.

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