Protect your haven with a suitable insurance cover?

Posted by sanjay on March 22nd, 2017

Owning a dream home will costs lot of money. The mortgage loan itself will eat up a big chunk of your finances towards monthly installment. Besides property taxes, furnishing etc. would erode your monthly finances further. However, imagine that there is a terrible earthquake and your house falls down like a pack of cards, else burglar breaks in and steal the valuable from your house. For a moment you will be shocked. Secondly, you will be worried about arranging additional finances to rebuild your house or migrate to other city and re-build your home. Therefore, it would be a wise decision to buy home insurance that will protect you against financial hardships and give you a sense of security in your minds during such unfortunate incidences.

House insurance policy covers the cost of rebuilding your house structure if the damage falls under the scope of the policy. The amount of cover on the policy will determine how much money the insurer will pay for rebuilding your dream home. At the time of purchase insurers should calculate the amount of necessary coverage for you.

Although, premium costs might vary from person to person, but the requirement of home insurance cannot be ignored. Here are some basic points to consider that can provide you with a better cover.

Evaluate risks

Risk that your home faces depends on your pattern of living and location. Do you travel for long period? Do you live in area that has safe and security for housing complex? Do you live in a city prone to floods or earthquakes?  These are some of the answers that companies will evaluate to decide the coverage amount and a suitable premium incurred on your home insurance policy.

Check risks covered

Once you have listed down the kind of protection your house will require, evaluate which policy will provide the most comprehensive protection for your specific risks. Will your policy give the options of covering the structure, content or both? A disaster prone area will make no sense for policy purchase. The premium will vary according to the extent and type of cover you want.

Clearly define the valid amount for house insurance policy life structure cover for fire and allied perils, loss of valuable assets like gold, jewellery, electronic goods, furniture and interiors, etc.

There is burglary cover as well to save your home from theft. It gives a crystal clear picture of what comes under protection with the exact cover amount your insurer will offer you. If there is fire, how much cover will it take to replace all the electronics, costly interiors, furniture to repair the house? If there is a robbery, how much would it take to replace your jewelry? In case of floods, or storms what will it take to rebuild your housing structure? These are some of the things that have to be analyzed before your policy purchase.

There are lots of online sites that let your compare policy apple-to-apple and decide the one which is the best home insurance policy for you. You can compare them in terms of premium costs, benefits & features, policy terms and conditions, claim settlement ratio, discount on premium, etc.

Also, familiarize yourself with the claim process for your home insurance. Else, it would be tussle task when you need the claim in urgent scenarios. Check if insurer requires some specific or different documentation for claims or what happens in extraordinary situations. When planning to purchase a house insurance policy or any other cover, a person should provide genuine details in order to get best cover at minimum premium costs.