According to a TechSci Research report, increasing cases of property damage from natural calamities or theft are set to drive the Indian home insurance market during forecast period of 2024. The report also states that the Indian home insurance market is expected to grow at a steady CAGR during the forecast period on account of increasing concern for safety and security. The key factors listed by the report attribute rise in the tourist traffic, increasing natural calamities and rise in the occurrences of theft that are anticipated to propel the growth of home insurance market in India.

The market is further fuelled by the benefits offered under the home insurance policy subsequently encouraging more people to get their home insured. National Disaster Management Authority estimates that 60% of the Indian landmass is prone to quakes, 8% susceptible to cyclones, and at least 38 Indian cities lie in high-risk seismic zone. Further, most cities in India are highly populated and do not have best architectural layout standards. It is not always possible to measure the extent of damages that any natural calamity entails in terms of money, but by choosing the right insurance cover people can secure their financial future. However, the market is likely to get subdued due to lack of guidance and awareness regarding the insurance policies.

The Indian home insurance market can be segmented based on type, source, premium type, area of property and region. The market can be further bifurcated into banks and non-banking financial company. Out of which, banks are anticipated to hold the largest market share during the forecast period which is attributed to easy accessibility of banks coupled with new benefiting cover insurance policies. According to the report, the online segment is forecast to witness high growth over the coming years on account of smartphone penetration and increase in the number of online users. Increasing incidences of natural disasters is the key factor that is propelling the home insurance market. Moreover, damage due to burglary, fire and allied perils, electrical mechanical breakdown of electrical and robbery are all covered under a home insurance policy, which is further driving India home insurance market. Many insurers even provide cover against the acts of terrorism.

What is Home Insurance?

Home insurance is an insurance that provides coverage for a building structure or structures and its contents against natural or man-made calamities. The coverage provided by the property insurance is not fixed and often varies depending on the type of insurance taken and the needs of the consumer. A basic home insurance policy is a fire insurance cover that insures the structure of your house and its contents against fire and allied perils such as lightening, storms and floods. On the other hand, a householder’s package policy (HPP), is a fire insurance policy that packs in more options. It also insures the contents of your house against burglary, damage and mechanical or electrical breakdowns.

What Are The Types of Insurances & Benefits of Getting Your Home Insured?

  • Property insurance is like a safety net that one can fall back upon in times of damage that may occur to their property due to varied reasons. Insurance usually provides cover under two main categories- hazards and liability.
  • Hazard insurance provides a policyholder against damages that may occur due to fire, vandalism, theft and similar mishaps. It could provide a cash value of the damages or their replacement value. The replacement value provides enough payment to replace what is lost or damaged. The cash value pays the policyholder the worth of the property. It takes into account the actual value of the item and its depreciation till the time of damage and pays accordingly.
  • Liability insurance provides cover against the accidents that may happen on the property. Medical expenses that one might have to bear due to damage to life on the property; example, if someone falls or a similar mishap occurs, liability insurance will take care of it.

Factors To Keep in Mind While Choosing a Home Insurance Policy

The process of buying a home insurance is very simple.

  • First, decide the coverage and come at a valuation. Declare accurately the value of assets that are being covered for the right sum insured amount.
  • The second factor is the amount of yearly premium that the insurance demands you to pay. Choose the deductibles wisely as a higher deductible will reduce the premium but will become an out-of-pocket expense in the event of claim.
  • The third factor that you have to understand is the time taken and the ease with which you can claim the homeowner insurance and settle the procedure.
  • Lastly, you have to go through the list of events that the insurance will cover. Then compare the various policies offered by insurance companies and shortlist the one that is most suitable.

Read the terms and conditions carefully, especially what the policy includes or excludes and the claim process before finalising the policy. For instance, for most insurers claim against burglary will not be valid if the house was not occupied for over 30 days. Claims will be rejected if it is proved that household help or anyone in the family of the insured is involved in the burglary. There are different factors that one will have to bear in mind, one being the amount of insurance coverage that you are getting from a certain policy on your property. The different incidents, natural disasters etc. that will be covered by the policy has to be in sync with what the topography of your site needs. Like some regions may be more prone to floods, some others to earthquakes- ensure that your insurance provides you a backup for the same. Pick a policy that ensures maximum coverage and insures against more mishaps and misadventures while the premium is also affordable for you. Keeping in mind all these factors and understanding the importance of home insurance and how it benefits you, will help you chose the right insurance for your home.

 

Source:

  • https://www.techsciresearch.com/report/india-home-insurance-market/4238.html
  • http://theprpertytimes.in/banks-lead-india-home-insurance-market-2024-techsci-research/
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