Home insurance is important for anyone who owns a house. It ensures financial safeguard of the property in case of an unexpected event. Knowing how to buy home insurance saves time and helps with better planning.
This blog discusses tips on how to select home insurance that matches your needs.
What is a home loan?
A home loan helps you buy a house by borrowing money from a bank or lender. The loan gives you the funds needed to buy, build, or fix a home. You repay the amount in monthly payments, which include interest. The property works as security for the loan. Once you repay, the house is fully yours.
Types of home insurance coverage plans
Here is the list of different types of home insurance coverage plans that you can check before buying:
- Standard fire and special perils policy: This type covers damage caused by fire, explosions, riots, natural disasters or even intentional harm to your property.
- Home structure/building insurance: This covers the actual structure of your home, including walls, roof, built-in fixtures and any attached areas like garages or locked extensions.
- Public liability coverage: Offers protection if a third party is injured or property is damaged within your premises.
- Personal accident cover: Provides a lump sum in case of permanent disability or death of the insured due to an accident.
- Burglary and theft insurance: Pays for valuables or contents stolen from your property.
- Contents insurance: Covers belongings like documents, electronics and appliances in your home.
- Tenants’ insurance: Ideal for renters, this covers personal assets within a rented house.
- Landlords’ insurance: Supports landlords for loss of rent or liability claims related to their rental property.
Inclusions and exclusions of home insurance
Home insurance covers your house and belongings from damages like fire, theft and natural disasters. Numerous plans include protection for valuables such as jewellery and artwork. But it’s important to be aware of what’s not covered. Claims that are related to false information, missing details or existing damage are usually excluded. Going through the policy carefully helps you see what is actually covered. In some cases, you can pay extra to have these exclusions covered. So, it is important to check the terms and conditions before buying.
Things to check before getting home insurance
Here is a quick checklist to help you choose the right home insurance:
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Checklist
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Details
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Type of cover needed
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Decide if you want to cover the building, contents or both. Tenants may only need contents cover.
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Correct value estimate
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Check the rebuilding cost and value of your belongings to avoid being underinsured.
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Area risks
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Find out if your policy covers local risks like floods or earthquakes.
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Policy features
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Look for standard cover, extra add-ons and liability protection.
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Policy exclusions
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Check what is not covered in the policy documents.
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Claim and insurer reputation
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See the claim settlement ratio and customer reviews.
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Policy terms and price
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Compare policy terms, premiums and deductibles before deciding.
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Online comparison
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Use online tools to compare options for coverage and price.
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Tips for choosing home insurance
Here are some useful tips for picking the right home insurance:
- Understand what home insurance covers before you buy.
- Think about your needs and assess which type of property insurance works best.
- Compare different options.
- Look into the insurer’s background and claim history.
- Always fill out your application with the correct details.
- Consider optional add-ons to enhance your cover.
Use these home insurance tips to get the best value for your money.
Conclusion
Choosing the right home insurance matters, whether you own your property or rent it. Before you buy insurance, take time to compare available plans and read the fine print to avoid any surprises later. Check your requirements and use a home insurance guide to help you decide on a policy. Also, researching different home insurance options online enables you to find a plan that fits your needs.
FAQs
1. Can I buy home insurance if I live in a rented house?
Yes, you can buy home insurance just for your belongings, even if you are a tenant. The landlord insures the building.
2. How to choose home insurance that fits my needs?
Assess what you want to cover, compare different property insurance plans, then pick one that matches your risks and budget.
3. What does a typical home insurance guide recommend checking?
A good home insurance guide suggests checking policy inclusions, exclusions, the claim process and the insurer’s reputation.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.