Home is a most valuable emotional and financial asset; securing it with a home insurance policy is also very important. While we take every possible measure to keep our home and belongings safe, disasters such as fire, theft, natural calamities, man-made activities (riots and terrorism) and other unforeseen events can cause significant damage to our property. Considering the possible uncertainty, having a home insurance policy can provide financial protection and peace of mind.
Types of Home Insurance Policy?
1. Structure Policy:
This policy covers damages to the structure of the home and any attached fixtures, such as walls, roofs, floors, ceilings, etc. It typically includes coverage for damages due to fire, theft and other perils as specified in the policy.
2. Contents Policy:
This policy covers damages or loss of personal belongings inside the home, including furniture, appliances, jewellery and other valuable items. It typically includes coverage for theft, fire and other specified perils.
3. Structure and Contents Policy:
This type of policy covers the structure and its content. It is advised to go for this type of policy as it provides comprehensive coverage.
How do you choose the right home insurance policy?
Here are some tips for choosing the right home insurance policy:
1. Coverage/Sum Insured:
The coverage amount should be sufficient to cover the cost of rebuilding a home and replacing its belongings in case of a complete loss.
2. Deductibles:
Check for deductibles carefully. Deductibles are the out-of-pocket amount/expenses before the insurance kicks in.
3. Exclusions:
These are the situations and events that are not covered under the policy. Be aware of the exclusions in the policy. Ensure you understand the circumstances under which the policy will not provide coverage.
4. Premium:
Compare premiums and benefits from different insurance providers to choose the best policy.
5. Reputation of the insurer:
Choose an insurer with a good reputation in the market. Research the company’s history and read customer reviews to ensure you choose a reliable insurer.
Benefits of Home Insurance Policy?
1. Financial protection against damages to your property and possessions.
2. It protects against natural calamities like floods, earthquakes, and storms.
3. Coverage for damages due to theft, fire, vandalism and other unforeseen events.
4. Peace of mind knowing that you have financial protection in an emergency.
5. Customizable policies with options to add coverage for specific items or risks.
6. Assistance and support from the insurance company in the claim process and restoration of your property.
Final Words:
Home insurance protects your property and possessions against unforeseen events. Choosing the right policy, coverage amount, deductibles, exclusions and premiums can help you secure your home and provide peace of mind. Consult with the financial planner and select the right policy that suits your needs and budget.