Home Insurance: A Shield Against
Loss/Damage
“A house is made of
walls and beams; a home is made with love and dreams.”
There is no such place
like home in the entire Universe. After all, it is a place where you and your
loved ones can rejoice, weave thousands of memories that last for a lifetime.
While we put our life’s savings into buying or constructing a home but we
rarely realize that our home needs a protection in the form of insurance too.
By investing in a good home insurance policy, also referred as homeowners
insurance, you can protect your home from threats. Situations like burglary,
fire, earthquake or destruction of house due to riots are quite common in
India.
Don’t wait for a
calamity to remind you the need of buying a home insurance, opt for it
beforehand!
Top 5 Benefits of Home Insurance
There is no denying of
the fact that house insurance is a must, however, there are other benefits and
riders to buying such a policy that will add convince you totally. Have a look
below:
·
Get comprehensive
coverage to both content and structure of your home.
·
Secure your assets
from any mis-happening.
·
Buy home insurance
policy at comparatively lower premium rates than other insurance
policies.
·
Reduce stress and
tension level for you’ll have a home insurance to fall back to, in case of
unforeseen circumstances.
·
Timely insurance
payouts allow families to go through rebuilding process quickly, helping them
to move on and get back to their normal daily lives.
Handy Tips for Choosing a Home Insurance in India
There are various home
insurance providers in India that offer different plans as per individual
needs. To ease your selection, we have listed down important points which
should be compared while choosing one home insurance company over other:
·
Check premium and coverage= Firstly, evaluate risks which your home is facing or might face
in a future. For example, if you live in a flood prone area then you should
ensure that your home insurance policy is covering these risks also. Also,
while checking coverage, it is prudent to check if the premium fits within your
budget or not. You can solicit premium quotes of individual insurers or use
comparison chart to compare premium quotes.
·
Check claim settlement ratio= A good company is judged by the turnaround time of settling
claims. The very purpose of insurance will be defeated if you do not get a
claim when it is required. So, it is worthwhile to check the claim settlement
record of companies before zeroing in on one insurer.
·
Look at company’s reputation= The first and foremost characteristics of a good company is that
it has customer friendly staff. Does your insurance company have competent
customer service representatives who are capable enough to resolve your queries
quickly? It is always important to choose a company who is well equipped to
assist you at any point of time.
Inclusions
Home insurance covers
losses to the structure and content of your home due to natural and man-made
calamities.
Fire and perils cover-
·
Aircraft damage
·
Fire
·
Lightning
·
Riot, strike
·
Storm, cyclone, flood
·
Missile testing
operations
Earthquake Cover
The policy offers
coverage against loss or damage to any of the insured property. However, many
policies do not cover flood or overflow of the sea, rivers and lakes due to
earthquake.
Burglary and Theft
Cover
The contents of home
are also covered against burglary or theft. The coverage will also be extended
to silver articles, jewellery, precious stones and other valuable items,
provided these are kept in a locked safe within your home premises.
Exclusions
·
Loss or damage caused
by wear & tear and depreciation
·
Loss of cash
·
Loss or damage caused
by war, invasion, act of foreign country
·
Loss or damage caused
by nuclear war
·
Loss, destruction or
damage caused to any electronic equipment due to over-running or excessive
pressure
Who Should Buy a Home Insurance?
Home insurance is
meant for anyone who has a home whether own or rented. There is myth that only
home-owners should buy a home insurance plan. Let us tell you case of Mr Vijay
Rao and how having a home insurance policy saved him during a crisis.
Two months after Mr
Rao moved to a rented apartment in Mumbai, a catastrophic fire engulfed
furniture and other appliances worth Rs 8 lakh. Thankfully, he had a home
insurance policy and he could manage to settle back to normal life again easily
and without any financial stress.
It’s a misconception
that only house owners should buy a home insurance. Although, house may belong
to a landlord but it has contents which belong to you. Irrespective of the fact
that whether you are a tenant or owner, buying home insurance should be your
top priority.
Even, there are
various insurance companies which provide exciting discounts to people who have
bought over 3 home insurance covers. However, don’t let discounts make you
buying those covers also which you don’t need. For instance, if you are a
landlord then avoid buying a policy to cover contents of the house. Leave that
to the tenant. Companies also offer discounts if you buy it for a long
duration. You can insure the house for up to 10 years, which not only gives
peace of mind but you also get a chance to earn lucrative discounts.
How to File for a Home Insurance Claim?
Almost every insurance
company is having its own deadline within which you have to inform about your
loss. These can vary between 7-15 days so make sure you do it as soon as
possible. Some companies even let you do with an email or SMS. Before you file
for a claim, you will have to lodge an FIR and the copy of which you need to
submit with insurance company. Apart from FIR report, the other documents which
you need to submit are-
·
Fire brigade report
·
Medical Officer’s
Certificate for death or disability
·
Investigation report
by police
·
Suppliers original
invoice for replacement
·
Invoice of owned
articles, if any
·
Repair estimates
·
Court summons
Note: This is an indicative list and you may
be asked to submit other documents at the time of claim settlement.
How to Lower Your Home insurance Premium?
Strategies that can
help in bringing your home insurance premiums down are-
·
Reduce your liability
by agreeing to share the burden of repairing. It will help in reducing your
premium.
·
There are many such
things in our house which are precious to us but there is no point in insuring
them if they are too old. For instance, your 10 years old black & white TV
might be working well, but there is no point in insuring it at a depreciated
value. Be wary while making an inventory of products to be insured.
·
Take two or more
insurance covers to become eligible to get discounts.
·
Like any other
insurance plans, if insurers are convinced that you have installed all safety
equipments at your home then you will become eligible to get discounted
premium. If you have security guards posted 24x7 in the building and fire
safety alarms installed at home, then you will get discounts in premium.
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