Home insurance types and economical benefits in Bangladesh

 Home insurance type and economical benefits in Bangladesh

In Bangladesh, home insurance is not mandatory, but it is highly recommended to protect your property from unforeseen events such as fire, natural disasters, theft, and other damages. There are two types of home insurance policies available in Bangladesh:

Standard Fire and Special Perils Insurance (SFSP): This policy covers damage caused by fire, lightning, explosion, aircraft damage, riots, strikes, malicious damage, earthquake, storm, cyclone, flood, inundation, subsidence, and landslides.

Householder's Comprehensive Insurance (HCI): This policy covers the same risks as the SFSP policy and also provides coverage for loss or damage to household goods, personal belongings, and electronic appliances.

The cost of home insurance in Bangladesh varies depending on the location, the value of the property, and the type of policy you choose. Generally, the premium is calculated based on the sum insured, which is the maximum amount the insurer will pay in the event of a claim.

The economic benefits of having home insurance in Bangladesh are numerous. Here are some of them:

Protection against financial losses: Home insurance can help you recover from financial losses that may occur due to unexpected events such as fire or natural disasters.

Peace of mind: Having home insurance can give you peace of mind knowing that your property and belongings are protected.

Affordable premium rates: Home insurance in Bangladesh is relatively affordable, and the premium rates are generally lower compared to other countries.

Tax benefits: Home insurance premiums are eligible for tax deductions under section 16 of the Income Tax Ordinance, 1984.

Easy claims process: Insurance companies in Bangladesh have a streamlined claims process, making it easy for policyholders to file claims and receive compensation.

In conclusion, home insurance is highly recommended in Bangladesh to protect your property and belongings from unforeseen events. The cost of home insurance is relatively affordable, and it provides numerous economic benefits such as financial protection, peace of mind, tax benefits, and an easy claims process.