Not to mention, you’ll require a thorough R&D before buying home insurance, especially to solve those questions you may encounter in your mind. So, in this article, we are going to tell you a few important things to ask or consider when buying a home insurance policy.
Things to Consider while Insuring Your Home
Let’s discuss a few things to consider while buying home insurance. Here you go:
- Assessing Property Value
The first and foremost thing you should know before purchasing a home insurance policy is the true value of your home. Whether you’ve built it recently or it is several years old, you should enquire about the circle rate of that particular plot from the development authority of that city.
Once you know the true value of your home, you’ll need to ask your insurer about the policy if you could get a policy at an affordable rate so that you won’t have to pay much from your pocket but get a better coverage.
- Contents of the Home
The contents of the home are as important as the home itself. Every content of your home, from a television’s remote to your mobile phones, tablets or valuable jewelries, they are valuable as you have put your money into buying those items.
Don’t forget to ask your insurer before buying a home insurance policy, whether the plan you’re opting for covers all this or not.
- Exclusions in the Policy
Apart from the things included in the coverage of a particular home insurance policy, you should ask your insurer about the things it does not cover. There is a limit to the list of perils your insurance policy covers. There are some exclusions to be applied in a home insurance plan and they are as follows:
- War or Nuclear damages etc.
- Flooding or sewer drainage.
- Any loss or damage due to any movement of bike, car, aircraft etc. or any recreational motor vehicle with an engine capacity exceeding 50 Horsepower.
- Any automobile, business property etc.
- In case of Burglary
You never know what is going to happen in the next hour of your life. Burglary is something that happens all of a sudden and you should ask the insurer about the documentation required for the burglary claim.
The documents required for the burglary claim are as follows:
- First information report (FIR)
- Duly filled claim form
- The original bill of the items stolen
- Cost of repair/replacement of the stolen items
- Factors Affecting the Premium
There are several factors that can affect the premium on your home insurance plan. Do consider the following factors:
- Claim History: If you have an adverse claim history, you’ll have to pay a higher premium.
- Risk-prone Areas: The location of your home can also affect your premium rates. If your home is located in a flood-prone, storm-prone area or in a region experiencing earthquakes frequently, the possibility of paying a higher premium is greater or vice versa.
- Personal Factors: Factors like your credit history and your lifestyle are directly proportional to the insurance premium rates.
- Protective Devices: Protective devices like CCTV, Fire alarm, Smoke detector can help bring the premium amount to all time low as these devices already protect your home from an unwanted peril.
- Terms on Premium Payment
Regular payment of premium is important in terms of availing policy benefits uninterruptedly. So, making all your doubts clear regarding premium is important. Remember that, in case you are not able to pay the premiums for a few months, the company is authorised enough to cancel your insurance policy but they can do it with an explanation within the specified time period. You can also challenge this decision if you’re not satisfied with their explanation or you have a genuine reason behind not being able to pay the premiums.
- What Happens When a Policy in Not Renewed?
The non-renewal of a policy leads to zero coverage. Once it is confirmed, the insured is no longer covered by the company’s policy. So, if you don’t renew your home insurance policy, you’ll not be covered by the home insurance company. Moreover, the policy also can be cancelled by the company in case you have made some serious misrepresentations or committed serious fraud while filling your application forms.
These are the few questions you should ask the insurer when buying a home Insurance policy. So, buy home insurance today and secure your pricey asset for tomorrow.