What are the Characteristics of a Best Home Insurance Cover?
In India, we have several home insurance companies selling different types of plans according to the need and preferences of the customer. A home insurance policy is divided into two categories based on the kind of cover they offer- whether it is for damages or for liabilities. Let's find out about them in detail-
Cover for Damages
The primary component of any insurance policy is to provide cover for damages. It offers a shield for the house, personal property, and other structures. It also offers alternate accommodation arrangements if needed. Below we have discussed the several damages covered in a home insurance policy-
1. Cover for the Structure
It protects against damage to the physical structure of the house or building. It also gives cover to the building from damages due to heating, electrical apparatus, air-conditioning, plumbing, etc. However, the land where the house has been laid up is never a part of the home insurance cover.
2. Coverage for Additional Structures
Additional structures refer to the surrounding structures which are not attached to the house. Some additional structures are- garages, a backyard shed, swimming pools, a driveway or ramp, a mailbox, etc. All these are also covered in your home insurance cover.
3. Cover for Personal Property
Your home insurance policy also gives protection to the personal possessions or the contents of your house from various risks. It includes a refrigerator, television, personal computer, AC, washing machine, toaster, microwave, etc.
Moreover, you can also add upholstery like- curtains, rugs, tablecloths, carpets, mats, cushions, etc. However, generally, home insurance companies exclude jewellery from this list. We suggest you read the policy inclusions first and then buy a cover.
4. Cover for Additional Accommodation Expenses
Another important coverage given by a home insurance policy is the additional accommodation expenses. In this, you will receive all the living expenses if the insured house is damaged by any external forces.
The expenses include rent of the accommodating house, travelling expenses, food bills, and other living expenses. Also, make sure you have all the receipts of the expenses incurred during this time for insurance purposes.
Cover for Liabilities
Your home insurance policy offers you coverage for any liability which may arise and cause harm to the third party. Below we have discussed all the types of liabilities that may arise. Also, it includes those liabilities that are outside the home structure.
1. Cover for the Liabilities
Liability cover is one of the main characteristics of any insurance policy. Similarly, your home insurance policy covers you from any legal liabilities that may cause harm to a third-party person on your premises.
Let's understand this with the help of an example. If a tree from your garden that is located on your premises falls on the neighbour's house and damages its fence. In such a situation, your neighbour can ask for your compensation.
Now here, your home insurance cover will rescue you and pay for the damages & repairs with legal charges, if any.
2. Cover for the Medical Payments to the Others
It is the feature of a home insurance policy in which the homeowner is liable to pay medical expenses for the treatment to the third party in case of an accident. The cover is designed to pay for the expenses of minor injuries. Some of them are mentioned below-
1. In case, when your kid physically hurt neighbour's kid while playing in your garden.
2. When your guest slips on the stairs at your house and gets injured.
3. In case, your neighbour slips on the ramp of your driveway and gets their foot fractured.
Tips for Choosing the Best Home Insurance Policy
Now you must have understood that a standard home insurance policy covers all the risks to your home and its belongings. Also, it covers liabilities to third-party. Buying a home insurance policy is an absolute investment in your life.
Below are some top tips that can be of great use while choosing a home insurance cover-
1. Firstly, understand the type of insurance cover you need. To choose the right plan, you have to understand your need first and then buy the plan & the coverage.
2. Choose and compare multiple plans online. Start with reputed insurance providers and create a list of them along with their coverages and premium. Also, you must check and compare their cover, add-on availability, inclusions, exclusions, deductibles, and claim settlement ratios.
3. While entering your details, give accurate information about the value of the home and its content. Do not miss anything because it can lead to claims getting turned down.
4. While buying the policy, look for riders also. Riders refer to add-on covers that can be purchased with a standard policy to enhance their coverage and give you extra protection.
Summing It Up
If you are planning to buy a house, understand how a home insurance cover helps you and how important it is for your home to be safe. To make your buying home insurance policy process simple, we have given all the characteristics of a policy and tips for choosing the right plan.
Written By: PolicyBazaar - Updated: 26 April 2022