Why You Must Invest In A Home Insurance Policy
Protecting your home does not necessarily mean you spend more on advanced cement and paint that claims to “never come off” after a horrible storm, or by using an anti-inflammable cooking range or even locking your doors each time you leave. Your home should be safeguarded against structural damage and theft. You should be worry free in the place you call home. Your home is your personal belonging, which you have worked so hard on building. The amount of time and money you have spent building your home should be your first motivation to educate yourself about home insurance. If any damage does occur, you should be focusing on getting back to your daily schedule. The last thing you want to be worrying about is how much money it will cost you to get your home back to the way it was.
Homeowners should understand the importance of having insurance for the following reasons.
Most home insurance plans cover two broad categories: structural damages, and value of contents in a house.
Structural damages include:
- fire
- lightning
- explosion
- implosion
- storm
- flood
- impact damage
- earthquake
- volcanic eruptions
The second part of home insurance covers the value of the contents of your home in case of burglary or an attempted burglary. Insurance will cover a certain percentage of loss of jewelry, that is if they were locked or any damage done to the contents of home.
Things to remember when buying a Home insurance
A common and understandable exclusion is that no policy covers willful damage (Photo credits: wikimedia.org)
Depending on which home insurance company you apply, their coverage and exclusions differ in specifications. Be clear on the kind of premium requirements you need. Some insurance policies have exclusions that others may not. For instance, HDFC covers both loss and destruction caused by theft or burglary. Comparatively, ICICI, another leading private bank, only covers losses caused by burglary. Other exclusions include cash, stocks, bonds, any antique items or property documents. A common and understandable exclusion is that no policy covers willful damage (damage inflicted by the owner on purpose).
An important action that you must remember is to file a claim before a particular situation gets worse. Your insurance company will refuse to address the destruction if it is reported too late. For instance, if your house has developed a leak due to an earthquake and your insurance covers such damages, it would be prudent to report the situation immediately. If you wait for a month and the situation becomes more problematic, your insurance will not address it. The insurance company will refuse your claim as this issue could have been resolved but waiting a month to take action has caused more damage.
Do not hesitate to file a claim immediately when you notice a problem in your home that comes under your insurance cover. Also remember, home insurance will not fix all your day to day problems.
Most premiums allow coverage for the reconstruction of damaged structure and the furnishing of your home caused by damage (or loss in case of burglary). They are covered by replacing the cost incurred in the repairing of your home. Secondly, home insurance can cover the actual market value of the property, in case you plan to sell your property instead of maintenance. This value is fixed by taking an average of how much someone would be willing to pay for your home and the accompanied land. It is suggested to have a premium that will cover your damages and destruction rather than selling your home. If you choose to sell your home, the insurance company will not sell it at the market price if the market value of your home is higher than the calculated average. Thus, the owner will not receive the difference.
Securing your home with insurance is important. Making this investment for your home is advisable because you keep the best interest of everyone and everything you love at heart.
Buyers propguide