Things to keep in mind while buying home insurance

A home insurance policy ensures that you remain financially stable in the event of damage to your property or valuables inside. Hence, it is always advisable to get your home insured.

The task of choosing the right home insurance policy for home buyers can be overwhelming as there are many factors to consider. However, there are a few aspects you should be aware of before choosing one.

Understanding Home Insurance and Its Coverage

Home insurance is a type of property insurance that provides coverage against unforeseen loss or damage to the house’s structure and its contents. Landlords (for their own home) and tenants living in a rented house can buy home insurance coverage.

Rakesh Jain, CEO, Reliance General Insurance Company Ltd. said, “In India, there are two types of coverage available. Structure insurance covers damages caused by structural damage to the house from natural calamities like earthquakes, floods. and contents insurance. Covers loss or damage to contents inside the house like electronics, jewellery, furniture etc. However, the coverage you need depends on a few factors. Also, these factors affect the premium of the policy.

Home location: The location of your home makes a big difference in determining what type of coverage you need. For example, if your home is near the sea, you need protection for your electronic devices which are easily damaged due to corrosion. Similarly, a natural disaster-prone area is often affected by earthquakes, cyclones or floods. In that case, you need to make sure that structural and material damages are covered.

house type: Insurance coverage varies depending on the type of home you are insuring. Be it an apartment, a plot, a bungalow or a rental property, the coverage may vary from one to the other as there are different risk factors associated with each type of home. As such, the use of your property determines its premium because the use of the building is directly related to the kind of risk that may be involved with the building. Typically, premiums are higher for commercial buildings such as offices, factories or warehouses.

Age of property: If the building is older, the apartments in those buildings are considered more susceptible to damage and damage. In such a case, the insurer may charge a higher premium. For example, repairing damage caused by a fire in your apartment due to short-circuiting old electrical wiring can be costly, and the old building may need to be rebuilt.

Replacement Value Vs Claim Deduction: As per the replacement value cover, the insurer makes a payment that will be sufficient to replace the damaged items with new ones. However, the insurer pays in other options after deducting depreciation. Thus, the latter type home insurance policy The cost is relatively low.

Provide your insurer with the correct information: When you apply for insurance, it is imperative to provide accurate information about your property and the contents inside. For example, description of the level/floor of the property, exact construction area, building/floor plan, number of white items, description of valuables including jewelery will help the insurer to assess the correct coverage for your home insurance and provide the best protection. will allow. Providing false or misleading information may result in trouble during the claim.

Know the exclusions in your policy: It is important to know the things that your home insurance policy does not cover. Jain said many insurance policies list specific types of damage they do not cover such as intentional destruction of property, loss and damage due to war, volcanic bulges, seepage damage and contamination damage.

“If you want to have an exclusion in your home insurance policy, you should get add-on coverage,” Jain said.

Add-ons available: A comprehensive home insurance coverage with add-on covers to suit your needs is all you need to ensure that your dream home is well secured. Add-on covers will help you in areas that your standard home insurance plan may not cover. “Some of the add-on covers include loss of portable electronic equipment such as cameras, audio-visual equipment, diagnostic and medical equipment, jewelery and valuables cover, terrorism cover, rent cover. Also, you can protect your premises from theft and home vandalism with specially designed add-on covers,” said Jain. Hence, thus, keep these factors in mind while choosing a suitable home insurance policy. Keep in

Documents required for claim process: When filing a claim, it is important to remember that providing insufficient or incorrect information may result in your claims being delayed or rejected. Duly filled claim form, building plan, first information report (FIR) or fire brigade report in case of theft or loss, bills/receipts, KYC documents, canceled check to receive claim amount electronically, some such There are documents that you may need depending on the type of claim. It will also ensure a smooth claim process.

mint takeaway

Buying a home can be one of the most important investments in your life. And with increasing uncertainty, buying home insurance becomes a future investment that can help protect you from any significant financial setbacks.