• News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

How A Home Insurance Policy Can Be Helpful Even During The Lockdown

Home insurance will cover our home and its contents against natural disasters such as floods, tsunami, earthquake, cyclone, etc.

Photo Credit :


The past few months have been challenging, and people have been coming to terms with the new normal. With the national lockdown, cash crunch and work from home, we are beginning to adapt to the new way of living. However, for people who are away from home, it would have been a relief as the government has relaxed the lockdown, and there is movement between cities. Gig workers are in a rush to go back home and be in the safety and comfort zone of their family and loved ones.

While making travel plans, it is also important that we ensure that our homes are safe in our absence. When we travel, we sometimes fail to protect our house and household things. It could be anything from a burglary to a fire to even a natural disaster. Coming back to any form of chaos or loss is not welcome. Therefore, having home insurance even for our rented house or private house, is important. For instance, when we are away and not sure when we will be able to return, we can protect our precious gadgets and appliances in the house with home insurance so that in times of any unforeseen circumstances like burglary, it comes in handy.

There are two types of insurance to protect our home.

  • Home insurance policy: It protects our home and its contents in the event of unfortunate happenings like burglary, accidents, disasters, etc. We can buy a suitable plan for home insurance, and the plan we choose can be to insure just the building or the contents of our house, or both as a comprehensive plan.
  • Renters insurance policy: It helps protect our belongings from burglaries, fires, natural disasters and more. Typically, Renters’ Insurance Policy includes liability coverage and protection for our belongings.

Let us deep-dive and understand what will be covered in home insurance.

Burglary: Most of us check the lock on the door twice before stepping out. Imagine getting back and realising someone has broken in and stolen precious gadgets or jewellery. The loss will be huge. However, home insurance that covers its contents can protect against such financial losses. Believe it or not, out of every 100,000 households, 600 are burgled every year globally. The chances of one’s property being one among the 600 may be less; however, it is not zero.

Accidents: Accidents like a fire from a diya or candle can be covered under home insurance. For instance, it is the festive weekend, and we are at home with friends and family. Just then, a firecracker or a rocket drops in from the window, starts a fire and damages our appliances. That is an accident where home insurance will cover all our losses due to the fire. Also, some policies offer a third-party add-on, which covers the belongings of guests or relatives who are visiting us.

Natural disasters: We can never guess what nature has in store for us. But we can certainly plan for its occasional fury. Home insurance will cover our home and its contents against natural disasters such as floods, tsunami, earthquake, cyclone, etc. One thing to remember before buying a cover against natural disasters is to study our location and choose the natural disasters our home is most vulnerable to.

If we do not protect our valuables, the losses that we might suffer may be heavy on the pocket. Hence, we must get home insurance – irrespective of whether we own the house or have a rented one.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

Vivek Chaturvedi

The author is Head of Marketing, Digit Insurance

More From The Author >>