House is something we give all our heart to and save every penny to build a dream dwelling, but saving a penny for a dream house isn’t an easy task. Those who are fortunate enough to afford their dream home can enjoy the homely warmth and the cozy feeling while having moments of love and affection with their loved ones. Of course, owning a house is a proud feeling and is perhaps the biggest investment one can ever make in his or her lifetime. Everything looks so beautiful and satisfying, but the other side of the coin is something different.
Every beautiful and auspicious thing comes with its set of risks and uncertainties. It would be more than a nightmare if your dream home gets collapsed due to any unforeseen event or calamity. Keeping all these in mind, it becomes crucial to buy a home insurance policy to ensure the property and its belongings against uncertain risks like natural disaster, fire, burglary, etc.
Home insurance policy is an agreement with the insurance company that ensures to provide coverage against any loss or damage to the house and its belongings caused from any unforeseen events. Loss or damage to the house or its content can trigger sudden and huge financial burden along with mental stress as well. In such situations, an insurance policy safeguards you from suffering financial crunch, while ensuring complete protection to the property and assets. Being secure is better than later being sorry, of course.
Before moving ahead, it is important to get some basic knowledge about the insurance plan.
Owing to different needs of individual customer, there are different types of insurance policies too, which helps customers to pen down their needs and circle the right policy based on their requirements.
Basic fire insurance: This is the most basic policy and covers damages caused by fire as well as natural disasters like landslides, cyclones, etc. A lot of homeowners choose this policy as it offers protection for many common risks.
Householder's package policy (HPP): If you want more comprehensive coverage for your home, you can choose a householder’s package policy. Apart from the risks that a fire insurance policy provides, HPP also includes missile testing, gas or water pipe explosions, landslides, terrorism, riots and more.
Natural disasters - Around 68% of India’s land is prone to drought, 60% to earthquakes, 12% and 6% to flood and cyclones, respectively. The statistics itself speak loud about the high risk incurred due to natural calamities as they are hard to predict, but one can definitely safeguard their possessions against unseen calamities.
Fire - Fire can turn manifestation of your dreams into ashes, if no safety measures are available on time. Therefore, it is important to protect your dreams from getting turn into ashes due to fire.
Burglary and theft - Despite several technologically advanced tools are launched in the market to safeguard your house and family from the risks of burglary and theft; it is not 100% secure as the thieves have solution to such advanced tools as well. They can hack your CCTV, video doorbell, and smart locks. It's distressing to even think about such happenings, hence, it is best to insure the possessions against the risk of theft or burglar with home insurance policy.
Valuable goods - A house is not just constructed with concrete and bricks, but it is furnished with other valuable goods as well. Any loss or damage to valuables including precious jewellery, sculptures, and watches, is covered under an insurance policy on the basis of the prevailing market value.
Man-made hazards - There are certain events that are out of one’s control such as strike, riots, and malicious acts; and such events can damages the assets and property.
Undoubtedly, a home is the most valuable investment and one cannot imagine any unseen event or disaster ruining their cozy abode. Well, we have already mentioned the key reasons to buy a real estate insurance policy, so now let’s move further and have a glimpse at crucial tips to buy best insurance policy in India.
Understanding insurance - It is no surprise that even after living in the digital era, most people are not aware of the importance of home insurance; and even those have the understanding of its importance, they have little or no knowledge about choosing the right insurance plan. Hence, before sealing the deal, it is important to have a thorough understanding about the insurance plan, which will give an idea about their requirements and helps them negotiate for better terms.
Shop around - Once you are able to assess your needs, the next thing to do is shop around the market. As we are in the digital era, it is easy to gather information related from pin to plane. The days are long gone when one needs to fix an appointment with an insurance agent and/or insurance companies. Online platform has made things easier from every aspect. Before buying house insurance, start shopping around to get the best deal and coverage benefits. Compare the policies online on the basis of the premium values, coverage, deductibles, exclusions, and fees & charges.
Financial strength - Another important aspect to consider is the insurer’s financial strength. It is essential to choose a plan that suits to the financial budget of the policy buyer. So, make sure to research the plan thoroughly to ensure that the policy doesn’t make any financial burden over the insurer.
Claim settlement ratio - Make sure that the entire efforts and investment being made is towards a reputed company with good claim settlement ratio. A company must have convenient and hassle-free claim settlement process, which gives a peace of mind at times of stressful situations.
Check inclusions and exclusions - Not every policy covers everything, thus it is significant to assess your requirements and check the inclusions and exclusion list of the insurance plan accordingly. Common inclusions include damage to the structure due to covered perils (lightning, fire, theft, etc.), loss or damage to belongings, third-party liability, and accommodation expenses.