If something is missing before you sign your insurance policy, you may not receive adequate compensation, in case of an error or you may need to pay higher premiums.
VAn increasing number of individuals have finally begun to realize that their dream homes and contents need to be protected from catastrophic events like natural disasters and other threats.
Gradually, householder's insurance – otherwise called home insurance – has begun causing a ripple effect, especially after the destruction brought about by the Mumbai floods and Gujarat earthquake. More in light of the fact that an increasing number of individuals have at long last begun understanding the need to shield their fantasy homes and substance from cataclysmic events and other threats.
However, by choosing this cover that is responsible for the most valuable possession of your life, if you want to ensure your peace of mind, then you ought to make a thorough check. When you forget anything, before signing it you may not receive adequate compensation or you may need to pay higher premiums.
Therefore, 10 things that should be taken into account when purchasing a home insurance policy are discussed here:
- 1. Sum Insured (building and contents): The sum insured should be equal to the reinstatement value for buildings and permanent furniture, fittings and fixtures. The reinstatement interest is the asset replacement value for any damage or loss. "The market value is the basis for insured amounts of household products outside the scope of this scheme, other than mechanical, electrical and electronic electronic machinery. The market value of household goods means, in the event of damage or loss, a less sufficient depreciation, the purchasing value of goods of the same or like sources. The insured building and the contents must be properly fixed in order to avoid deductions from the insurance average when the claim is made, "said Rajiv Kumar, MD&CO of Sompo Universal Insurance.
- 2. First loss Base: If you feel that no adverse events can damage or cause loss of all of your content, you should purchase an initial loss-insured first loss base home insurance policy. In the event of an insurance claim, the insurer will not penalize you here. For example, Sampoorna Grih Suraksha provides Universal Sompo General Insurance on the basis of the first loss. You will save money by first-time risk policies.
- 3. Mandatory and optional coverage: There is a wide range of coverage areas available and you should choose the best coverage. Fires and associated perils, theft and burglary, all risk (watches and jewels), plates of glass, failure of home appliances, electronic equipment, personal injuries, covering of luggage, workers ' compensation, public liability, extra charges for alternative housing rental, loss of property, repair costs and so forth are some of the significant coverages under the Home Insurance Policy.
- 4. Price: Choose a home insurance plan that offers maximum protection at the lowest premium coverage. “Opt out of superfluous covers you don't consider important. This flexibility must be offered by your home insurance product to select coverage based on your needs and affordability. If your house has less glass fittings, for example, then opt out of plate glass coverage. "Kumar explains.
- 5. Exclusions: Pay heed, in order to avoid ambiguity and deny a claim, to all exclusions under a home insurance policy. A list of things that are excluded under your policy will be available in each covered section. Exclusions from the section All Risks (Jewellery and Valuables), in particular, should be sought as to cover damage other than the specifically excluded ones. Pay attention also to general exclusions such as war and nuclear risk, catastrophic damages, intentional fraud, pollution etc.
- 6. Deductibles: Sections of a home insurance policy generally have a deductible you must bear from your own pocket before your insurer pays your claim. "This is to avoid small claims. You must check that deductibles are not very high and choose from the deductible list a product that is affordable, "Kumar reports.
- 7. Declaration: Make sure you state your occupancy, other companies on-site, address, etc. under your home insurance policy. Such formalities form the basis of the contract and any further argument, and in the event of non-disclosure or misrepresentation the agreement may become null and void.
- 8. General Conditions: Do not forget to check the general conditions of verification of claims, necessary documentation, risk modification, and more. Check that there is any guarantee that you must meet during the entire policy term. As in the case of a burglary claim, an FIR must be filed with the police in time. Knowing all the conditions clearly will help you in the time of trouble.
- 9. Easy Purchasing and Service: virtually all insurers have online policies available. These are easy to buy and have no trouble selling. "In the event of any confusion, always call your insurer's customer care and check the insurer's service parameters. Look always for an insurance company ready to offer excellent service, and fulfill its pledge, "said Kumar.
- 10. Claim Settlement Record: The insurer should look at the claim settlement record. For that reason, you pay the premium and should be satisfied that your claims will be paid on time by the insurance company.