The valuable asset of life certainly is our family and home. Your contentment is bounded to your home. This ever-changing world demands you to preserve those sources of happiness. Accidents, disasters or theft- anything can directly affect your home. Thank god we have a unique solution. A solution which helps you to rebuild your dream from dust. We call it home insurance.
What is home insurance
Home insurance or homeowners insurance is a property insurance which is not a mandatory choice. Means you can choose whether you need to insure your home or not. There is no legal obligation that demands you to take insurance. Remember, when you buy an automobile it is already insured, right? So like said before, home insurance is a personal choice and a multilayer policy. Insuring your home simply means the whole of your property is financially protected. It is a backup for unprecedented expenses caused by sudden misfortunate. Your home insurance in a wide sense includes both property and liability coverage. Here liability means when a third party is affected by any property in your home, he/ she got covered under the policy.
Types of insurance
Understanding the content of your policy is essential. Before buying a policy for home, work on it. Know if your policy is actual value or replacement cost policy. As the name indicates actual value means the full payback of your coverage. But whatever your loss is, the claim is predefined. Literally nothing more or less. So homeowners usually go with the replacement policy. Under this, your insurance company will pay the full price for replacing a damaged item in your home. For example, if your furnishing is destroyed but insured, you will get the same kind again. But care must be taken in the specifications of policy. Remember, only specified belongings of your home will get the coverage.
When you rent a home, the replacement policy is advised. Here building policy is not your concern. If you are sharing your room with another, then damage to your property is a probability. In such case content insurance is beneficial. But if you’re the landlord, complete property need to be insured rather than contents.
Which is best for you?
Insurance and its benefit are determined by your choice. Preplan your needs before buying insurance. Consider the geographical condition. If you foresee any risk such as flood or earthquake never hesitate to take high coverage insurance. When you buy a home or villa in a busy city like Calicut, the policy must include protection from unprecedented damages. Because in the city, the mistakes of others is a big concern. Most times, coverage limit comes under the mortgage you yield. Otherwise, the insuring company will recommend a coverage limit based on the local construction rate. The size and structure of the home is a factor when calculating the insurance limit. Insurance agency evaluates your building materials, rooms, special features of home etcetera before making a final agreement. It means any structure you built after signing the policy might not come under the insurance protection. Remember to add an inflation guard in policy. That will help to maintain the insurance limit with the increased building cost.
Where to get
There are numerous agencies and banks around you to provide home insurance. Besides, there are plenty of online insurance plans. Responsible decision is recommended here. Private insurance companies come with much more colorful offers than public banks. In that case, study the legitimacy of that organization before striking a deal. Or deal with state-owned insurance group like LIC.
Legal procedures
Insuring process is purely a documented process. The coverage, premium, terms, condition, and everything is defined under the well-crafted document. Home is considered an investment. Unlike a vehicle, its value increases in future perspective. The main part of an insurance deal is claiming the amount at the time. If any damage occurred to your home as specified in the policy, contact your insurance agency via helpline, mail or message. Don’t forget to document the damage by clicking some photos of the situation if possible. Ensure you have all supporting documents safe in your hand. Because that is the first thing your insurer asks you after such incidents. You may need to submit the first investigative report, hospital bills, or any expenditure bill related to the accident. It is recommended to read the whole document before such things happen. Otherwise, your insurer may remind you the exclusions of policy at the exact time of claiming.
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