BackPlanning to buy home insurance? Check these things before going for it
In its simplest version, home insurance policy covers the building along with its contents against the act of nature, fire, burglary, etc. The house owners should be careful about exclusions and inclusions in the policy papers.
PremiumIf health and term top the insurance priority list, securing your home is equally important.
"Home is one of the most significant financial and emotional investment in our lives. And any kind of damages, like a natural calamity to theft, can lead to huge losses and burn a big hole in the pocket," said Amar Joshi, Chief Business Officer, SBI General Insurance.
Hence, it's wise to buy comprehensive home insurance that can insure the home building structure as well as belongings and valuables.
Today, most insurance companies offer comprehensive home insurance, but what do such plans include?
Covering home with a comprehensive home insurance policy can safeguard us from a number of perils including fire, lightening, earthquake, storm, riot, landslide, flood and inundation. Coverage for terrorism, breakdown of domestic appliance and portable equipment, theft and burglary, safe deposits in bank, accidental coverage for family, compensation for domestic help, coverage for pet dog are some of the covers that can be opted from a wide list of add-on covers, informed Dr. Shreeraj Deshpande, Chief Operating Officer, Future Generali India Insurance.
He added, even cover for loss of rent or cost of alternative accommodation incurred because of loss are available. This will enable you to be independent and recover without stressing about the expenses."
Echoing similar thoughts, Rakesh Jain, CEO, Reliance General Insurance Company Limited, "A comprehensive home insurance policy can mitigate the risks that individuals face with such disasters and cover costs related to such increasingly common shocks. It also gives you peace of mind."
Now, as much as buying home insurance is extremely essential, there are a few things that you need to be mindful of before making a purchase.
Renu Maheshwari, CEO and principal adviser, Finscholarz Wealth Managers said, in its simplest version, the householder's policy covers the building along with its contents against the act of nature, fire, burglary, etc. But, in most cases, there are exclusions such as war or nuclear explosion. The house owners should be careful about exclusions and inclusions in the policy.
Moreover, Maheshwari points out, for a household insurance policy in India, the options differ from one insurance provider to another. You should choose the options that are relevant to you and can also add more.
Although the policy protects against burglary, few insurance providers exclude cash. Also, jewelry claims need proof of purchase or any other proof. Care should be taken to take a cover for replacement value rather than the market value of the asset.
For example, the value of an apartment will include the value of UDS (undivided share of land ) and the construction cost. Insurance is needed for construction alone. "The insured value should be the replacement cost rather than the market value because that is the money that will be needed to rebuild the property. Also, look for appropriate optional covers such as temporary living expenses," Maheswari said.
Make sure that you do not suppress any material facts and understand all the clauses well.
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