Home Insurance Buying Guide - Secure Your Home with Best Home Insurance Plan - Infographic by Royal Sundaram
Home Insurance Buying Guide - Secure Your Home with Best Home Insurance Plan
Purchasing a home is one of the biggest thing in life. Apart from utilizing most of the savings, you may have to avail a home loan to purchase it. To avoid the financial impact of damages caused to your home due to unexpected perils, a home insurance policy is recommended.
A home insurance plan offers financial cushioning to cover the cost of damages caused due to natural calamities such as flood, fire, storms, etc. and man-made issues such as theft, riots, and others. So to avail the best possible protection for your home, here is the step wise guide to buy the right home insurance policy to suit your requirements:-
1. Understand the types:
- Home insurance can be classified into two types:-
- Building insurance: - Under a building insurance policy, the structure of your home as well as compound wall & landscaping, if any, will be covered.
- Content insurance: - Content insurance covers the belongings such as furniture, clothes and electrical appliances.
As a home owner, it is important to obtain both building and content coverage. Some companies also offer discounts on purchasing both from the same company.
2. Enquire about the risks covered: -
As coverage varies from insurer to insurer, it is important to be covered for risks that are important according to you. For e.g. certain companies do not cover damage by earthquake. If you live in an earthquake prone area, such a policy may not be worthwhile for you. Hence it is important to be aware of the risks covered before you purchase a policy. Most home insurance policies cover risks such as:-
- Damage caused due to natural calamities such as floods, hurricanes etc.
- Accidents such as fire breakouts, damage from falling tress etc.
- Damage due to vandalism
3. Determine the required coverage: -
It is essential to know from the very beginning about how much insurance coverage is required. Find the true value of your home content by doing an assessment of the value of items currently in your home. The building reconstruction value can be arrived at by multiplying your actual built up area in square feet by the present day cost of construction per square feet, which is @ Rs2,500/- per sq ft today.