What comes to mind when you think of buying a new house? Home Loan? EMIs? Long loan tenure? What about Home Insurance? Here’s everything you need to know.
What comes to mind when you think about buying a new house? Home Loan? EMIs? Long loan tenure? You got all that right. But are you thinking of securing your home? Heard of Home Insurance? Confused much? Let’s tell you everything about insuring your home.
What is Home Insurance?
Let’s give you a scenario to explain Home Insurance better. Say your town was ravaged by floods. Your car was damaged. The Car Insurance took care of that. You needed medical aid. Your Health Insurance came to your rescue.
Your home was damaged by the floods. What covered that damage? That’s where Home Insurance plays an important role. You get the idea.
A few exceptions to the rule
You must remember that Home Insurance is an expensive safety net for your home and it doesn’t cover all types of damage. Various types of Home Insurance policies provide cover for different types of damage. It is important to do your homework thoroughly before choosing a Home Insurance plan. Select a plan that is suitable, considering your lifestyle and geographic location.
Additional Reading: How Much Home Insurance Do You Need?
Should you get Home Insurance?
Yes. Yes. Yes. You most definitely must get Home Insurance for your property. Like any other insurance, it will make sure that you’re safeguarded from unfortunate events. There’s nothing quite as nice as having peace of mind, knowing that your home is secure.
What does the Home Insurance premium depend on?
The premium that you pay on a Home Insurance plan depends on several factors. These include the size of the property, the age of the property, the cost of reconstruction, the cost of electrical appliances, furniture, and valuables.
Make Home Insurance affordable
- Before getting a policy, make a complete comparison between the different policies that are available.
- If your home has burglar alarms or smoke detectors installed, many insurance providers will give you a good discount on the insurance premium. What’s more, your home is safer.
- Remember to choose an insurance policy that gives you cover for any disasters that your home may actually be at risk for. For example, if you are in a flood or earthquake-prone area, make sure that your policy specifically covers damage from events like these.
What you need to know before getting Home Insurance
Types of Home Insurance
When you are looking for Home Insurance, you have two options to choose from:
- A basic building policy
This covers disasters such as fires and storms, among others.
- A wider policy
This policy includes cover for damage to your home due to human involvement like a break-in.
You might find that some policies require an additional fee to provide protection against a wider range of calamities.
Comprehensive insurance policies
Home Insurance providers may also offer comprehensive insurance policies that will extend the cover to household items. Now, isn’t that a useful cover to have?
Here’s a tip: Read the insurance documents and note the exclusions carefully before finalising on a policy.
Claims Process
Filing claims for Home Insurance is no easy task but it must be done.
- You will need to give evidence of damages to your home.
- Your home will be inspected before your insurance claim is approved by your insurer.
- In case your insurance policy also covers household goods, there will be certain items that are not included under claims.
- Sometimes, the level of damage to your home may exceed the insurance cover you are eligible for. You must be prepared for this possibility.
Don’t be in a hurry to choose a policy
Get as many insurance quotes as you can and make a thorough comparison of the features offered.
You should remember to be careful while selecting Home Insurance because a wrong choice of policy could result in financial losses, while the right policy will offer you a safety cushion in case of damage to your home.
Now that you have been introduced to how Home Insurance works, are you ready for that Home Loan?
Additional Reading: Insurance Protection For Home Loans