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Everything You Need To Know About Homeowner’s Insurance Policy

Rajbir Achoriwala

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Everything You Need To Know About Home Insurance Policy

With so many home insurance policies available, it can intimidate choosing the right cover for your home. 

At a basic level buildings insurance covers the cost of replacing the bricks and mortar and rebuilding your home, but most people also cover their contents too.

What is Home Insurance?

Home insurance is also known as a homeowner’s insurance, is a property insurance that covers a private residence.

It is an insurance policy that combines various personal insurance protections, which includes losses occurring to one’s home, its contents, loss of use, or loss of other personal possessions of the homeowner, and liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

Home insurance also provides financial protection against disasters.

It ensures the home itself along with the things kept inside.

What does a Home Insurance cover?

1) Main structure: A designated amount of money in this category will pay to repair or replace the structure.

Insurance companies are recommending additional coverage through riders to ensure sufficient replacement value insurance exists when labor and material costs exceed the base policy.

2) Additional structures: Outbuildings, decks, and other structures fall into this category. It must add new structures to the policy to cover the following loss.

3) Contents: Personal belongings inside the home will fall under this component. Standard policies do not cover expensive belongings, such as jewelry and collectibles.

Homeowners list expensive belongings under insurance riders to provide coverage and reduce the premium.

4) Liability: Damage sustained to someone else’s property is covered here up to the stated policy limits.

5) Loss of use: A home which is beyond repair will require another dwelling for the family while they make repairs. It reimburses the homeowner for this component.

General Home Insurance Claim Process.

  • In case of an accident, ensure your safety and the safety of the home first. If you can, take all the steps to avert the damage.
  • Contact your insurance provider through the helpline number, fax or mail and explain the damage caused.
  • If possible, take snaps of the damaged parts of your property. Also, ensure that you keep the bills and receipts of the services you have availed after the accident.
  • Depending on the nature of accident and extent of damage, your insurer will ask for supporting documents. Make sure you submit all necessary documents along with filled claims form.
  • The insurer may appoint a surveyor to assess the damage.
  • After they validate the claim, they will offer you a suitable reimbursement by the insurer.

Things To Keep in Mind While Opting for Home Insurance

  • The policy should only be for an adequate sum because under home insurance it limits the claim payment to the cost of construction.
  • Always take a home insurance policy for the long term, so that it can minimize the premium.
  • Opt for add-on covers like earthquake/terrorism.
  • In order to hedge the inflationary impact on construction price, always opt for the escalation method of insurance.
  • Make sure to carefully go through the policy document, before selecting any insurance.

 

ALSO READ: How To Buy Your Dream Home

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