Answers to Some Common Questions About Home Insurance Policies

Answers to Some Common Questions About Home Insurance Policies

A home is undoubtedly the most precious investment. You not only are heavily invested financially, but also bear and emotional attachment with it. Hence, a protective cover is essential to prevent the financial loss that may arise. These losses can be due to calamities that often come unannounced and end up causing a substantial damage. Damages of these kinds can disrupt your finances. Thus, it is essential to insure against such unforeseen events using a home insurance cover. Here are some of the commonly encountered questions that help you in buying the right home cover.

What is a home insurance policy?

A home insurance plan, just like a motor or health insurance policy, works on the principle of indemnifying losses. The losses may be either due to a natural disaster or other forms of man-made risk. They are significant in terms of the extent of damage as well as the financial loss they cause. Using a home insurance cover, not only the structure of your home, but also the contents within it can be insured against these perils. However, the policy’s scope depends on the coverage of your insurance plan. Lightning, fire, typhoon, storm, flood, earthquake, etc. are some of the natural perils that are covered whereas explosions, aircraft damage, riots, terrorism, and the like are the man-made perils that are covered. * Standard T&C Apply

What are the eligibility criteria to purchase a home insurance policy?

There are no eligibility criteria defining who can purchase a home insurance policy. All individuals, who are owners, or a tenant of a property can buy a home insurance cover. However, a policy that spans for more than one year may not be available to purchase for tenant buyers.

What are the types of home insurance plans offered?

Home insurance plans can be purchased for covering the structure as well as the content of the home. With a structure insurance cover, the damages to the construction are covered by the insurer by way of reimbursement. It is the most basic coverage that every homeowner must invest in. If you wish you protect the contents too, a content insurance coverage can be opted for alongside the structure cover. The insurance company provides for the value of declared content when you make a claim.

How are home insurance quotes calculated?

Home insurance quotes are computed considering the valuation of your assets:

  • The total built-up area of the house.
  • Construction cost of per square footage.
  • Value of contents declared at time of purchasing the plan.

When buying a home insurance plan, you can make use of a home insurance calculator. This calculator enables you to determine the premium based on the coverage opted for, structure-only cover or along with coverage for the contents. It is a nifty tool that decides on factors like owned or rented accommodation along with the basis for determining coverage to arrive at a premium amount.

Is home insurance expensive?

Unlike the common belief that insuring an expensive asset like home might be costly, it is in fact easy on your wallet. Moreover, the benefit it offers in the long run is far-fetched that the cost of buying one. Hence, you must not skip if you want to have a hassle-free life not worrying for the unfortunate events that might damage your home.

These are some of the questions surrounding home insurance that can help you make a wise decision in buying and insurance for your house. However, when buying, please note insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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