To buy a luxurious home can be a lifelong dream for most of us. As this is an expensive asset, necessarily you will protect your house against the potential threat. You can achieve this by getting a comprehensive home insurance, which protects against any damage to the house and valuables in it. Home insurance is an insurance policy that covers both damages to your property, liabilities or legal responsibility for any injuries and members of your family cause to other people. It combines various personal insurance protections, including losses occurring to one’s home and contents.
A basic home insurance property covers fire damage, storm, and floods.
A wider policy protects your home from earthquakes, fires or electrical breakdown.
If your house is in a flood or earthquake-prone area, you should not mind taking the complete package to cover the risk.
A home insurance covers damage aroused due to both man-made and natural disasters, so it is mandatory to buy a cover which provides subsequently risk-free. The premium is determined by property valuation, city, location, also the square feet in which house in contained in. Always take a wise idea to cover everything possible within the package.
The sum insured varies for structural insurance and contents insurance. For structural insurance, the sum insured includes the cost of rebuilding the property rather than the market value while for the contents of the house; the depreciated value of the items is used. If your home has 1,200 square feet carpet area and the construction rate is Rs 500 per square foot, then the total would be Rs. 6, 00,000.
Benefits of Home Insurance
- Offers Full coverage against financial liabilities due to damage or loss of your house
- Man-made accidents are also included in it such as Burglary and Theft Cover, etc.
- In the event environmental calamities, this proves to be a lucky for you as there would be full reimbursement of your property by Government.
- Reduces your fear of losing the house due to unavoidable calamities, thus having a calm and composed life.
Tricks to Look for Right Home Insurance
- Check the coverage and the premium
Take into consideration all the risks in your home before choosing a policy. In case you have a lot of valuables at home, you should make sure your policy covers them all. It is also a wise idea to check if the premium fits within your budget. Just browse through policy comparison websites to get the best quote price and then go for it.
- Check the Claim Settlement Ratio
Track past records of an insurance company whether it settles the claim quickly or not. A good company always pays their claims quickly. So make sure you check the claim settlement history before deciding your home insurer.
- Do Check listings while filing Claims
1) Always prepare evidence of damages caused to your home
2) The insurance company should inspect your home before accepting the claim form.
3) The level of damage may also exceed the sum insured.
While filing a claim makes certain important documents such as policy number, insurance papers, the extent of loss calculated along with date and time of the incident and claim form are in place.