4 Things To Keep In Mind Before Buying Property Insurance

Posted by joshmeth on November 13th, 2017

We go to great lengths to insure our health, cars, bikes, and even the financial future of our loved ones. However, when it comes to the security of our precious homes, we still have a long way to go. Property insurance does not figure in many people’s mind, it should. It is a single policy which protects not just the structure of your home but the contents inside as well. 

It is vital that you get your home insured as soon as possible. Here is all you need to know before you buy one. 

1.    Decide The Type

When you insure your home, you’ve got two options: building structure or the contents. The first one protects the physical structure from a range of man-made and natural calamities while the latter covers valuable belongings inside the home such as furniture, mobile, laptop, jewellery, etc. It is best to buy a comprehensive plan which covers both.

2.    Get Adequate Cover

A home’s market value is calculated using the cost of land, cost of construction, demand and supply, and other factors. However, the sum insured value is decided to keep only the cost of reconstruction in mind. Get a civil contractor, calculate the reconstruction cost and then decide the sum insured you want.

3.    What Are the Exclusions?

Often people are given a rude shock when they see their claims rejected. That is because the damages they claim are not covered. Therefore, when you are reading the policy document, pay special attention to the exclusions part. You will save a lot of money.

4.    Online vs Offline

Buying home insurance online has the edge compared to buying it offline. Right from convenience to ease of making any endorsements to enjoying lower premiums; go with online purchase option whenever you wish to buy a plan.

Insuring your home is as important or in fact more important than designing and decorating it. Keep the above four points in mind when you buy a home policy.