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7 reasons why home insurance should be your top priority

Here are a few reasons as to why home insurance is a must-have thing and how it can help one to avoid a huge financial setback in the event of any mishap.

When you buy home insurance online or offline, make sure you opt for the policy offering the best cover.

A home is not merely a structure made of cement and bricks, it is a space filled with emotions. People earn for their lifetime and give everything to build a place where they could live comfortably with their family.

You gave your all to have a home of your own, but do you have any backup plan to protect the same?

There are few things which we as a human do not have control over, and to protect the ‘humble abode’ that you have instituted with the years of constant dedication and hard work, home insurance should be your top priority.

However, the irony is, people see it as an unwanted expense, but in fact, it is not. Let us check out some legitimate reasons as to why house or home insurance is a must-have thing and how it can help you avoid a huge financial setback in the event of any mishap.

1. Natural Disasters

As mentioned earlier, there are few things which are beyond our control, and natural disasters aka “Acts of God” are one of them. It can strike anytime, and anywhere. Remember the recent floods of Kerala, Uttarakhand and Mumbai that affected millions of lives with deaths, injuries, and destroyed homes. People witnessed houses and assets getting destroyed in front of their eyes and had to use their hard-earned savings to rebuild homes. It was a traumatic and emotional experience for them.

Therefore, to protect yourself and your family against “Acts of God” such as landslides, floods, earthquakes, cyclones, etc., it is important for you to buy a home insurance plan.

2. Man-made Disasters

No doubt we live in a technology dominating society where we have the latest and fanciest of safety measures, such as CCTV security and gated communities, but we cannot rely on them completely for our security, can we?

Man-made disasters such as riots, strikes, robberies, terrorism, thefts, etc., are a real risk and still prevalent. And this makes for a strong reason for you to have a proper home insurance plan. However, some insurers may not cover for the losses due to all these risks, but you can ask them for extra protection in the form of riders.

3. Protection for the Contents Within

Home insurance not just covers your house, but also the contents within. Things like electronics, furniture, jewelry, light fixtures, antique items, valuable home appliances, etc., are also covered under a home insurance policy. However, the scope of coverage might vary as per your preferences. In case of any damage or theft, you will get compensation for the same or even get them replaced with the new ones. So when choosing a home insurance plan, you can actually opt for the things that you want to get cover for along with your home insurance.

4. Not Expensive

For many, home insurance may seem like an unnecessary expense but a few know that it comes at a fairly low premium rates, which may be cost lesser than a rupee per day. And in return, home insurance buyers get significant benefits. Further, you get the flexibility to increase or decrease the premium amount as per your affordability by simply adding or removing the items to be insured under the policy.

5. Protection against Lawsuits

What if you incidentally damage someone else’s property owing to the spread of fire? You will be in a legal hassle. But, home insurance can save you from such hassles by covering the cost for the damage caused to another property due to any incident. Not only this, it also covers the cost for the medical expenses of the visitor or guest injured in your property during that event.

6. Coverage for Rent

If in case you experience a loss due to fire perils, and it makes your home inhabitable, be it owing to natural disaster or manmade circumstance, you may have to find a temporary accommodation until your home gets reconstructed. In that case, your insurer pays for your rent. So, being a responsible individual, it is always wise to be prepared for the worst, and home insurance ensures financial support in such situations.

7. Peace of Mind

You cannot deny the fact that for most people, home insurance actually sounds like a certain expense for an uncertain reason. However, the peace of mind offered by home insurance is more than anything that money can actually buy for you.

So, it does not matter whether you own a villa or an apartment, once you buy home insurance for it, you get the luxury of peace of mind because you know that you are prepared for the worse.

Buying home insurance is indeed a proactive step you take to protect your home from unforeseen dangers. It signifies what extent you can go to protect your home. Moreover, home insurance is the right policy to provide protection from uncertainties not only to homeowners but to tenants as well. However, when you buy home insurance online or offline, make sure you opt for the policy offering the best cover.

(By Subrata Mondal, Executive Vice President at IFFCO Tokio General Insurance Company )

Reference: www.financialexpress.com

Date: 18/02/2019

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New leaf, new financial habits

Do you feel in control of your financial situation, or do you muddle through and worry you’ll never be organised enough to meet your financial goals?

If you’re on top of it, well done you! It’s no mean feat.

If not, worry not.

We know it can seem like an uphill struggle and bad habits are hard to shake, but even small changes and a few good habits, could free up the money you need to fuel your financial future and those all-important goals.

You work hard enough for your money, so we’ve shortlisted three top tips to help turn the tables, take back control and make your money work for you.

1. Follow the money

Start tracking exactly where your money goes every month and scrutinise your spending. That means looking at your mortgage or rent, utilities, insurance, grocery bills, socialising, travel, debt, childcare and clothes shopping – everything right down to those pricey little indulgences.

You’ll be amazed just how much tracking what you’re spending will bring to light and it will make you a lot more mindful the next time you hit the ATM, supermarket or your favourite online store.

Allocating an allowance for the things you know you need to cover, like rent or travel to work and setting a budget for nice to haves like nights out or new clothes, will improve your money management immediately.

There’s lots of help available too. Start with your online banking services, as lots of banks now offer monthly income and expenditure breakdowns on accounts, or you could download a budgeting app that will do the math for you.

There are some great apps on the market that track spend, scan receipts and even take direct debits and bills into account, so you can get busy plugging any financial leaks.

2. Cut costs and splash out on savings

Smart changes mean more money to devote to your savings, kick-starting the pension you’ve been talking about or building up enough to invest for the longer-term.

The simple fix is often the most effective and one of the fastest ways to achieve a healthier bank balance is by prioritising your expenses.

Consider this scenario:

You spend around €5 Monday to Friday on a sandwich or something similar for lunch (and you’re no stranger to a chocolatey treat and coffee afterwards). That’s about €8 a day, five times a week. So, €40 a week on lunches you could easily make for about €10. Multiply that by four and you’ve just saved yourself €120 a month.

It’s not rocket science, but it works.

What about shopping around for the best energy, phone, internet, TV and insurance providers to shrink your bills so you can channel the difference into a saving or investment account?

It’s a good idea to question any memberships you pay on a regular basis too. Are you using your gym enough to justify the costs or could you get what you need somewhere less swanky (and expensive)?

If nights out are hammering your bank balance, maybe host friends at yours or use online deals to make socialising more affordable.

These ideas are just the tip of the iceberg and they all free up cash that can be put towards your financial goals.

3. Raise your financial IQ

Committing to increasing your knowledge on money management, saving and investing will allow you to think and act with much more savvy when it comes to your personal finances.

Following a finance blog that speaks your language, listening to podcasts on your commute or reading a chapter of a good book each day, is a great start.

The New York Times Bestsellers List is peppered with self-help and ‘How to’ titles that have helped people turn their finances around. Even scanning the business pages of the Sunday papers will keep you in the loop on money matters, without getting lost in technical commentary.

What’s the biggest lesson?

The biggest take away here is that your future belongs to you and as you grow older and take on more responsibilities, it becomes even more important to be aware of your financial situation and take control of it.

Remember, even the biggest journeys start with one step and the small changes mentioned in this blog can help you move in a much more positive direction.

Reference: www.irishlife.ie