Home is not only a shelter but a place where you find mental and emotional security. As your home protects you, you too want to protect it from any form of threats and disasters. This is because your home is very precious to you. Therefore, in order to save your house from any form of perceived or unperceived threats, you should opt for a home insurance policy. But there are some points that you must bear in mind before you finalize on any one.
Types of Home Insurance Policies:
The three components that influence the value of the insurance of your property are: Land, building or structure of the house and the content, that is, the belongings of the house. Your policy coverage will vary depending on whether you are the owner or the tenant of the house. Primarily, there are two types of insurances that are available in India. They are: Structural Policy and Content Policy.
Structural Policy covers the structural damages of your house that are caused by natural disasters like fire, earthquake, floods and terrorism. Whereas, Content Insurance Policy covers the loss of contents inside the house, like the furniture, jewellery, appliances etc. It is to be noted that the value of the land on which the property has been built is not to be taken into account.
So, if you are a tenant you would be naturally applying for content insurance. On the other hand, if you are the owner of the house, you should be looking for a comprehensive policy that covers both structure and content.
Coverage Area of the Insurance:
If you want to buy a Structure Insurance Policy, you will have to pay an amount that is equivalent to the sum of money required for reconstruction of your property. But if you want a Content Insurance, the amount you need to pay would be a summation of the cost of all the valuables of the house. Therefore, in order to get the right insurance coverage, the valuation of your house and your belongings should be precise and accurate. Otherwise, you might have to bear heavy losses.
Choosing the Right Insurer:
You must be cautious when you are selecting the insurer. Don’t go by the pricing only. Check the reputation of the insurer in terms of claim settlements. You can do this by going through the online reviews and complaints on the services provided by your selected vendor.
Timely policy Renewal:
Do not forget the date of policy expiry. Also keep renewing your policy time to time. Remember that, the value of your property will increase due to reasons like renovation, in case costlier materials have been used. In such cases, your policy needs to be upgraded.
Read the Terms and Conditions Carefully:
Before finalising on a particular insurance policy, you must go through the terms and conditions in details. You must also read the fine print with great care as it is always better to be safe than sorry.
By considering the above mentioned points you can buy the best home insurance for your precious house.