6 Surprising Facts of Home Insurance
When buying homeowners insurance, it is important to go through the policy inclusions, such as damages caused to the insured property due to fire, natural calamities, theft, and vandalism.
Nevertheless, did you know that home insurance insures both home and its contents? Look at some more surprising facts about home insurance below-
You can cover both the home structure and home contents
While buying home insurance in India, you must be aware of the fact that you can cover both the home structure and its contents. The structure insurance covers the building against several unforeseen circumstances, such as man-made and natural disasters.
On the other hand, content insurance covers household items. However, make sure you can calculate their value in the current market price. You can choose either one or both types of cover.
Important fact-You cannot insure a building structure more than 50 years old.
Your house insurance does not cover other activities happening after terrorism
Your house insurance policy does not offer coverage for the loss or damages arising due to theft, looting, housebreaking, burglary, etc., that happens after the terrorist attack.
Loss due to willful acts remains uncovered
Some exclusions include willful acts of destruction of property, loss of your insured property during the war, and damages due to wear and tear. Moreover, you cannot cover antiques and cash under home insurance.
Home insurance and home loan insurance are two different things
Your home insurance policy pays for the loss or damages caused to the insured home structure or its content in an unfortunate incident. However, home loan insurance pays the remaining home loan amount when the insured cannot repay the loan due to any mishap.
You may also read- Difference between home insurance and home loan insurance
Home insurance is an expensive deal
It is not so true because the home insurance premium depends upon the type of plan or coverage. You can easily invest in a basic plan to safeguard your precious possession.
Other than this, your premium relies on the cost of the home structure and the current market value of the household items. If you wish to add-on covers, the premium amount automatically goes up.
Check for hidden costs
While purchasing home insurance, you must check the hidden costs associated with it. Sometimes, your insurer may not declare some hidden costs such as administrative charges or allocation fees at the outset. Therefore, you must enquire about it with your insurer before opting for the policy you want.
Depending on your preferences and selections, a home insurance policy covers you against several unforeseen risks. However, there are certain terms and conditions of the policy that you must go through carefully before buying it. You must go through the above-explained surprising facts about home insurance to find the right deal.