Home Insurance Essentials

After flipping through endless real estate brochures listing properties in India, negotiating deals and arranging finances, you may have finally fulfilled your dream of owning a home; but that is not the end of it.

After sowing the seed of your life’s biggest investments, you need to take care of it meticulously. And what better way of safeguarding your abode than to have it covered under a comprehensive home insurance policy? Property insurance offers you complete peace of mind, and gives you a strong backup in the event of any unforeseen and unpreventable mishaps.

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Here are a few facts you need to be familiar with before you vouch for a home insurance policy:

Type of insurance: Insurance cover on property in India can be broadly divided into two types, namely structure cover and contents cover. Structure cover assures you compensation on damages that occur on your building due to natural as well as man-made calamities. On the other hand, contents cover would safeguard the housed commodities against varying degrees of damage as well as theft. While you can take any one of them as per your needs, it is advisable to go for both if you are looking for a home insurance that comprehensively covers your home as well as belongings.

Parameters: Building cover is usually calculated on the basis of the total built-up area of your structure and the construction costs that prevail in the nearby area. Contents cover on the other hand relies on the total market worth of the commodities that are housed within the premises.

30-Day Non-Occupancy Clause: If the insured house remains unoccupied for30 consecutive days (or more), there is little chance that your damages will be covered in the event of a misfortune. Be sure to read the fine print of this clause prior to signing your policy documents.

Maintenance: This is one major aspect that most owners of property in India tend to overlook. While your home insurance policy safeguards your prized possession against destruction, it does not, however cover costs relating to wear and tear of the same.  Be wary of the slightest harm that may be caused to your home due to negligence in terms of upkeep, as any damage resulting from this may not be covered by your insurer.

What to keep handy in the event of a calamity: In case of an unforeseen event, always keep with yourself the following: your property insurance policy number, a claim form and your insurance provider’s helpline number. A copy of an FIR or equivalent proof of event would also need to be submitted along with the estimates of the claim.

Just keep these points in mind, and we are sure you will enjoy a hassle-free property insurance cover safeguarding your dream home!

For more details on home insurance, visit www.proptiger.com.