We all are aware of insurance in some way or the other. Common forms of insurance are life insurance, car insurance, property insurance, and the like. Our home is one of the biggest assets of our lives and most of us are not aware of the relevance of insuring our dream house.
Insuring a home will help you cover the losses related to structure and contents in case of any man-made or natural catastrophe. It safeguards your house from unforeseen causes which may destroy it like fire, lightning, explosions, hooliganism, riots, or vindictive activities.
Few Important Tips
Here are some tips that you should keep in mind before buying a home insurance policy.
1. Assessing the value of the house
An important and valid question is to assess the value or worth of your house. It can be obtained by multiplying the area of your home by the rate of construction per sq feet, as on the date of buying the policy.
Assessment of contents is per the market value of the articles and usage.
2. Coverage
An important natural query is to find out the benefits offered by a particular insurance company. Compare the policies of few reputed companies. Review the policy for any protection being offered against inflation.
3. Extended coverage
Buying extended coverage would be a better option if the new property is not covered by the insurance policy in order to ensure new acquisitions.
4. Optional coverage
If the dwelling area is exposed to threats of earthquakes and floods, then it would be good to ask for optional coverage.
5. Less premium
Try to go through the home insurance policies of few leading insurance companies and choose the one with a smaller premium.
6. Check the insurance company
Before actually buying the policy, be sure of the financial standing and authenticity of the insurance company. The company should have creditability and accountability with regard to customer satisfaction and safety.
7. Policy exclusions
Know about the exclusions of insurance policy as there are many points which are in fine prints but actually are uncovered by the policy. It is a good practice to learn about the exclusions of the home insurance policy while buying it.
Home insurance offers you tremendous peace of mind and provides ample monetary help in times of need. So consider these tips while buying the policy and secure your dream houses.
