Everything You Need To Know About Home Insurance!

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No one can predict what’s going to happen next so getting your assets insured is a must. Buying a house is one of the most significant investments you will make in your life so it is imperative to get a home insurance first. But most people are not aware about home insurance and other factors that are attached with it.

Basically, home insurance is meant to cover losses to the contents and structure of your house from any man made or natural calamity. With home insurance you can protect your home from unforeseen and unwanted causes due to which damage can occur such as lightening, fire, storms, explosions, burglary, hooliganism, riots etc.

home insurance

Assessment

The first question that you need an answer to is how the value of your home and all its content is assessed before getting it insured. Well, the value of your home is determined by multiplying the area of your home by the rate of construction per square feet on the date on which you are taking the policy. For example, if your house is about 2,000 square feet and the rate of construction per square feet is Rs 1000, then the amount insured for your home is Rs 2,000,000.

The value of the contents is assessed based on the current market value of the items concerned. If you lose a certain item, the claim will be paid on how much the same item would cost after deducting the depreciation for usage.

Why Get Insurance?

First of all you can safeguard your home and all your valuables against all sorts of unexpected losses. You can claim the amount you have lost due to accidents or calamities. Moreover the cost of the premium is quite low and you get protection against everything from terrorism to water tank break downs. If there is some situation where you are forced to take a property for rent due to an insured peril, the insurance company will also pay the entire cost of the rent.

Things To Look Out For!

You need to be very careful and look out for your own interests while dealing with insurance companies. The insurance company is not liable to make a payment in these exceptional instances:

If the damage or loss is due to the involvement of the insured person or their domestic staff.

If the damage or loss is on account of motor vehicles, livestock, money, stamp, securities for money bullion, bonds, bills of exchange, share or stock certificates, manuscripts, business books, documents of all kinds, credit cards or debit cards are not covered unless and until they have been previously specifically declared.

Damage or loss of illegally acquired property.

Points To Keep In Mind!

Make sure that your coverage that is being offered by the company is automatically adjusted against inflation.

If you make any new property acquisitions and they are not covered by your policy, then you should purchase extended coverage so as to get them insured.

Do your research properly and find a cheap as well as good home insurance policy. You should be very careful while selecting one from so many available options in the insurance market.