Home insurance is also called homeowner's insurance. It safeguards your bungalow/apartment/rented flat/owned house/built home against potential risks. It covers the costs of damages due to any unfortunate event.

In simple words, home insurance is an agreement between a residential property owner, i.e. you, and a home insurance provider, wherein the latter offers protection to your house from any loss or damage that may occur due to an unforeseen situation.

162 3 mins. 01 Feb 2023. Home insurance is a type of general insurance that helps individuals safeguard their properties from any natural calamities or man-made perils. With this policy, homeowners can get financial coverage for any damage or lost content of the house.

The insurance provides coverage not only for the belongings, but also for the valuables and other items within the house. Damages caused due to natural and manmade calamities, theft and loss caused due to fire are covered in it.

Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.

Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

Functions of Insurance They ensure the protection of the family. They are risk-sharing policies. They prevent the damages that can come from loss. It provides capital.

With the right homeowner insurance,you are secured against the following damages - fire,electrical breakdown,burglary,manmade hazards,natural calamities,shifting expenses in case of alternative accommodation or emergencies,and accidental damage.

Insurance coverage can be provided for medical expenses, vehicle damage, property loss/damage, etc. depending on the type of insurance. Premium, policy limit, and deductible are the main components of an insurance coverage policy. The policy buyer should check them thoroughly while buying an insurance policy.

These elements are a definable risk, a fortuitous event, an insurable interest, risk shifting, and risk distribution.

It offers financial security to the house against damage from events like theft and catastrophes. Additionally, it provides coverage on belongings and liability coverage. It provides financial protection against damage and loss to the condominium units owned by the condo homeowners.

Purpose of insurance Technically, the basic function of property/ casualty insurance is the transfer of risk. Its aim is to reduce financial uncertainty and make accidental loss manageable.

In insurance, there are 7 basic principles that should be upheld, ie Insurable interest, Utmost good faith, proximate cause, indemnity, subrogation, contribution and loss of minimization.

Benefits of Insurance Coverage

• Provides Protection. Insurance coverage does reduce the impact of loss that one bears in perilous situations.
• Provides Certainty. Insurance coverage provides a feeling of assurance to the policyholders.
• Risk Sharing.
• Value of Risk.
• Capital Generation.
• Economic Growth.
• Saving Habits.

What are the main types of life insurance policies in India?

• Term Insurance.
• Term insurance with return of premium.
• Unit Linked Insurance Plans.
• Endowment plans.
• Moneyback policy.
• Whole life insurance.
• Group life insurance.
• Child Insurance Plans.

7 Functions of Insurance

• Insurance provides certainty.
• Insurance provides protection.
• Risk-Sharing.
• Prevention of loss.
• It Provides Capital.
• It Improves Efficiency.
• It helps Economic Progress.