Natural calamities, crisis-like situations, burglary, or theft can cause a huge amount of destruction to your property and put you at a loss. By protecting your investment with a Home Insurance, you can save yourself from an enormous financial setback.
Your home is more than just a roof over your head. It’s the place where you relish, rejoice, unwind, and make memories of a lifetime. No place in the world can ever replace the comfort of being at home. Most of us put in our whole life savings to build a home of our own. This is why it is most important to protect your life’s valuable asset with the right home insurance policy.
Home Insurance is a necessity to protect your home and possessions against any kind of damage, be it natural or man-made. While you are planning to invest in a Home Insurance, let us help you answer some basic questions related to it.
What are the Benefits of Home Insurance?
A Home Insurance Policy gives you financial security. Moreover, you can rebuild your damaged home or replace the contents of your home with the compensation paid by the home insurance policy.
What does it Cover?
Your Home Insurance Policy can provide you coverage on the damages caused in the following instances
- Fire, Bush Fire
- Riots or other Malicious Acts
- Natural Disasters – Lightning, Floods, Cyclones, Earthquakes, Storms, Landslides
- Missile Testing Operations
- Terrorist Acts
- Burglary and Theft
- Explosion or implosion
- Water Tank Bursting, Overflowing of Pipes
What are the Different Types of Home Insurance?
Structure Insurance – The policy covers the roof, floor, walls from damages caused by fire, and other natural or man-made calamities. It is also known as Standard Fire and Special Perils Policy.
Contents Insurance – This policy covers the house against damages of loss. It covers your home belongings which include jewelry, furniture, appliances, and other contents of the house.
Comprehensive Insurance – If you are looking for complete coverage, Comprehensive Insurance is suitable for you. This covers both the structure of the house and contents against damage and loss.
Public Liability Insurance – If individuals get injured when they are on your property or if your property causes damage to another individual’s property. In such cases, the third party might raise a financial liability on you. This policy covers such liability.
Tenant’s Insurance – It’s not important for you to own a home to need insurance. People living in rented accommodation can opt for this insurance. This policy covers all belongings of the tenants in their rented house.
How to Choose a Home Insurance Policy?
The following tips can provide you great help in choosing the right home insurance policy.
Buy the Policy You Need – It’s advised to choose the policy according to your needs. You should be aware of the coverage you need. For instance, if you’re a home-owner, the comprehensive policy is the best for you. However, Contents Insurance works best for tenants.
Always Do a Comparison Before Buying – Choose. Compare and Buy! While buying, do not forget to compare the different plans, coverage features, and premium rates.
Choose the Required Add-Ons – A Home Insurance Coverage can be further enhanced with the required add-ons. If you are a landlord, you can choose “loss of rent” add-on as you can lose rent in case of any damage to the house. On the other hand, homeowners can choose an add-on that covers the rent for alternate accommodation.
Also, Compare the Claim Settlement Ratio of the Company – Determine the probability of claim settlements by comparing the claim settlement ratios of different companies. The higher the ratio, the higher would be your chances of claim settlement.
Check for Premium Discounts, if any – You can lower your premiums by checking for premium discounts.
If you are a tenant and planning to skip investing in Home Insurance, we must tell you that – buying a Home Insurance should be your absolute priority whether you are a tenant or a homeowner. As a tenant, you can opt for a policy covering the contents of the property.
It requires a great deal of money, years’ time to construct a property, and then transform it into a home, so isn’t it imperative to secure your world with the right Home Insurance Cover? If you haven’t decided yet, we suggest you should not think any further and plan to invest in a Home Insurance today.
