Getting a life, medical, or car insurance seems like a no-brainer. But turn the scene over to house insurance and there aren't many takers.
It's commendable that you've decided to purchase home insurance. The right scheme will keep both your home and its contents insured, and help ease your worries in case of any unfavorable and unforeseen circumstances.
Here, we discuss 10 important points to keep in mind before purchasing home insurance.
1. Don't Settle for Just Any Insurance Company
The market has many insurance companies vying for your attention, providing you with a wide variety of options. Then why pick the first home insurer that pitches to you?
Typically, you should shortlist three to four home insurers and then wisely choose the one with the strongest financial credibility.
2. Take the Right Call on the Coverage
You need to make sure you're covered for the right amount. Your insurance provider will typically determine how much coverage you'll need. But ultimately, you should take the call, as it will determine the sum you'll have to pay in case of a calamity.
The better the coverage, the lesser you'll have to pay.
3. Choose the Tenure of Your Coverage Wisely
You have two choices typically, annual and multi-year coverage. Opt for the annual coverage if you'd like to revisit your insured sum every year, to know if it meets your needs. A multi-year coverage, on the other hand, helps you avail great discounts.
4. Protection for Both Home and Contents
It's important for you to know that both your home and your belongings can be protected by your home insurance scheme. Ask your home insurer to provide you with the best possible scheme.
5. Home Insurance Covers a Wide Range of Incidents
The insurance can cover a wide range of incidents, including burglary, fire, floods, earthquakes, hurricanes, landslides, lightning, explosion of hazardous materials, and so on. Knowing these cases will help you understand when you can file for claims.
6. The Few That Aren't Covered
If your property is illegal, you can't file for claims. The insurance scheme becomes void if you or your domestic staff have been directly or indirectly involved in an incident causing loss or damage.
7. Your Home's Reconstruction Value Matters
The insured sum is based on the reconstruction value of your home and not the market value. Reconstruction value takes into account the cost incurred after damage. The value of your home's contents is based on the future depreciation value.
8. Quality of Insurer's Service Matters
You don't want to be chasing your insurer at a time of loss or damage to your house and belongings. The least you should expect is an understanding and friendly insurer helping you at such a time.
9. Your Home Insurance Needs a Relook Every Year
Check with your insurer every year if the sum insured is adequate. You may have remodeled your house, added a room, or opted for new insulation. These costs will finally add up and your insured sum may fall short.
10. Understand What's In Your Home Insurance Policy
You should know what's written in your home insurance policy, since it is an acknowledgment of your rights and responsibilities as an insurer. Make sure to keep it safe and easily available for whenever you'll need it in the future.
Hi I am Abishek Kumar, blog writer by profession with commonfloor.com. CommonFloor is India's leading online real estate platform that combines property search, apartment management and vendor management, thereby catering to consumers' complete residential needs. I provide tips and suggestions on property investment, real estate basics, and community living. For more property related queries, you can visit http://www.commonfloor.com
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