Essentials of Home Insurance Policy that You must Know About
According to the AON Benfield Catastrophe Recap Report, November 2015 the economic losses incurred after the December-January floods in Chennai surpassed Rs. 20,000 crores but the home insurance claims were barely around Rs. 2,000 crores which is extremely shocking. There were a lot of motor insurance claims but very less number of home insurance. This was really startling that people are ready to invest crores for their dream house but are not willing to spend a few thousands on home insurance. Why home insurance is important? As per the industry experts, home insurance is poorly sold in India. It accounts for less than 1% of industry premium in terms of sales. Either they are not aware or they don't see any risk to their property- be it fire, natural calamity , burglary or an act of terrorism. Any of these unfortunate events can create a big hole in the pocket as you run pillar to post for the repair work or replace the stolen or destroyed items. What are the different type of home insurance policy? To cater to the different needs of every individual, home insurance companies and banks in India offer a wide range of home insurance policies. Customers can go for a particular policy as per their requirements. The basic policy provides protection against natural calamities such as fires, floods, earthquakes, storms, lightening's and so on. It also covers the man-made causes such as explosions, riots, strikes, terrorist acts, etc. The premium of the policy is dependent on two factors- location of the insured property and the tenure of insurance. As a matter of fact, home insurance can have a tenure for minimum of three years to a maximum of 30 years.
The two most common types of home insurance policies are as listed below: Home Structure/Building Insurance This type of insurance covers the structure of your house from different risks and dangers. Along with the structure of the house, this policy also covers any permanent fixtures such as bathroom and kitchen fittings, the roof/ceiling of your house. It also covers the outside structures such as garages, outdoor room/house or sheds. Content Insurance With the rising cases of burglaries, natural calamities and fire, the demand for content insurance has shot up up. In this type of insurance, along with the structure, you have also the content inside the house insured. From your clothes to books and home appliances to furniture's, everything is covered in this insurance plan. Home insurance can be bought for both content and building combined either or the two. The other different types of insurance which can be availed in India are public liability coverage, personal accident, burglary and theft, tenants insurance and landlords insurance.
Things to Keep in Mind while buying Home Insurance Policies Before buying any house insurance policy, there are certain points which you must keep in mind in order to avoid any kind of fiasco after you have got the policy. Some of these have been mentioned below: 1. Read your house insurance policies thoroughly 2. Check whether all the additional features of your home have been insured or not. These may include garages, fences, swimming pools, etc. 3. Consult with a quantity surveyor or builder 4. Make sure you went through all the exclusions in the policy. Many policies do not cover the loss due to rainfall, seepage or cash losses 5. Don't fall in the trap of under insurance 6. You must know that banks only insure the home loan amount and the fixtures are insured separately
Top Tips to Save Money on your Home Insurance Its always good to save money be it any kind of investment. Below are the simple yet effective tips as how you can save money on your home insurance. Have a look:
Compare the prices online -To sell their products, most of the insurance companies roll out lucrative plans with different sets of inclusions at competitive price rate. You can compare the prices online and then choose the one which offers the best home insurance plan.
Think Long Term - It is always good to go for long term plans. With this, will be free from the hassle of renewing the policy and it will also reduce the premium cost.
Buy Insurance Online -These days you get an option to buy home insurance online. This saves you both energy and time.