Checklist for home insurance policy holders

The coronavirus epidemic has highlighted vulnerabilities associated with movable property, emphasizing the importance of real estate stake dispersals like land and property. 

Checklist for home insurance policyholders


Although your homes are safe to deal with any adverse situation, they still need a cover that protects you in case something bad happens to the property. home insurance comes in importance here.


What is home insurance?

At present, there are a variety of insurance policies available in the market promise you protection from adverse conditions. an insurance cover, which promises the security of your home and property in adverse circumstances, is known as home insurance. apart from landlords, tenants can also purchase home insurance policies to protect the house and its premises from any accident. 

Here, it is important to mention that home insurance and home loan insurance are two different insurance products, they serve different objectives, and one should not be confused with the other. to better understand these two products and their differences.


Home undercover loss insurance

Home insurance policies provide home security from various unpleasant situations including nature-driven disasters such as cyclones, storms, lightning, earthquakes, floods, landslides, tsunamis, avalanches, fires, terrorist attacks, thefts, and thefts, etc. riots, etc. 

The property insurance policy will offer a cover against these disasters through reimbursement and help rebuild your property. in addition, home insurance policies are of different types, and they generally provide specific cover. 

If you want protection from a group of disasters, you have to buy a customized property insurance policy. to understand this better, we need to find popular home insurance policies, which we will discuss in the next part of this article


Disadvantages not covered under home insurance

There are many types of damages to your property that your home insurance policy does not cover. you have to be extremely careful of these losses. 

First, a home insurance policy only covers the construction cost of your home. this means it will not reimburse you the full value of your property including the cost of land. 

Property insurance cover will also not reimburse you the biological depreciation in the value of the property. 

However, home insurance policies provide relief in case of fire disasters, they will reject your claim in case of fire due to overrunning of electronic equipment. Insurance companies do not offer cover even if your property is damaged due to the ongoing war between the two countries. 

Some of the disadvantages of your property that are not included in home insurance policies are listed below:.

  • Damage caused by natural wear and tear
  • Deliberate destruction of property
  • Damage to undeclared goods
  • Damage caused by pets
  • Disadvantages of running a business from business activities
  • Damage caused by wars, nuclear attacks, invasions, acts of foreign enemies
  • Loss caused by misuse of electrical appliances
  • Damage to an under-construction property
  • Loss of collectibles, antiques, and cash during robbery and theft
  • Damage to a property that remains empty


Types of home insurance policies:

At present, there are about eight packages of policies for landlords and shopkeepers in the market. Some of them are mentioned below. 

  • Standard fire and special risk policy
  • Home structure insurance
  • Public liability coverage
  • Personal accident
  • Theft and burglary insurance
  • Material insurance
  • Tenant insurance
  • Landlord's insurance

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Home insurance policy premium

With a tremendous increase in the incidence of natural disasters, the cost of buying home insurance is increasing. the premium of your home insurance policy will vary depending on the insurance cover you have applied for. 

Generally, insurance companies reimburse the estimated amount under the policy contract, the total amount that comes after factoring in the value of the asset based on the company's major determinants. 

These include the exact location of the area, the area where the property is spread, and the quality of material used in construction and facilities.


Highlights to remember when buying home insurance

Here are some things you should have to keep in mind while buying insurance for your home: 

  • Seek security keeping in view the topographical challenges of the location. a property close to the sea always needs cover against cyclones and tsunamis. similarly, a property located in the earthquake zone will need a cover against it. 
  • Read the policy documents well. insurance companies will use any of these segments either to complexly deprive you of relief or reduce profits in times of need, no matter how cute their branding pitch may be. you should have complete information about the product. 
  • If there is a disaster in your home, inform the home insurance company without wasting time. 
  • Declare a list of all items in your house while purchasing the policy. the value of the items you forget to mention in the home insurance policy will not be reimbursed. 
  • Insure only expensive items and things that can be a problem for you. don't unnecessarily expand home insurance coverage as it will be the amount of higher premium payments.


Frequently asked questions:

Ques 1: Are home insurance and home loan insurance the same things?

Ans: No, home insurance and home loan insurance are totally two different products.


Ques 2: Which are the major home insurance providers in India?

Ans: Some of the major companies providing home insurance in India include Bharti Axa home insurance, icici Lombard home insurance, iffco Tokyo home insurance, hdfc ergo home insurance, and reliance home insurance.

 

Ques 3: Can I claim a tax cut on home insurance premiums?

Ans: No, you can't claim a  tax deduction on premiums paid on home insurance.


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