Ready to buy home insurance? Here are all the things you must know before you buy it

We often get disheartened to learn that the insurance bought to cover a particular thing, doesn’t really cover that one thing! Though sounds stupid, it’s something that happens with many. Especially, while making haste in buying a particular policy, we often jump over the terms and conditions and ultimately land from the sky with great shocks!

The same might happen for your home sweet home, if you do the same while getting it covered. Keep your worries aside, we are here to help you get rid of the troubles that are likely to follow you if proper precautions are not taken.

Start digging to know more about your policy

It’s quite obvious that you don’t have to literally dig in the ground. Instead, all you have to do is get more aware of the T&Cs associated with the policy you are opting for. To get hold of your claim, you first need to understand the actual promises made by your insurance issuer.

Generally, a typical home insurance policy consists of around ten sections including covers on numerous risks ranging from fire and allied perils , floods to loss of baggage, earthquake etc. Fire related accidents are quite frequent, so there’s no need to take further risks.

Almost all the householder policies cater fire perils coverage. So, the more covers you require, the more holistic your policy becomes. You can now even get your home burglary or housebreaking covered, even if the theft operation was carried out by your maid. But, here’s the catch – you won’t get all the covers unless you opt for.

Special attention please!

If you are purchasing a policy cover for your flat, you need to know something beforehand. Sometimes, the society takes care of it through comprehensive insurance for all the buildings in the compound. Likewise, if you are an owner of your own house and wish to claim for both your house and land beneath, that’s practically not possible. Home insurance policy covers the cost of your house and not the land.

So even if you are on the tenth floor, your premium and cover would be the same regardless of your floor. You will only get the cost of construction of your house, arrived at, by multiplying the carpet area of the flat/home with the cost of construction in the city you are residing at.

Compare and buy – don’t say yes on the first instance

It’s indispensable that you compare several policies and then nod your head staring at one. Proper home insurance comparison is the first step to ascertain which particular policy caters you more. Going through the estimates of the policies and their respective covers, knowing the deductibles, gives you an edge over your requirements.

There’s an inversely proportional relationship between your premium and the deductibles. Higher the premium you pay, lower the cost of deductibles you need to deposit to claim your case. But, if your home is in a location prone to earthquakes or floods, you may have to pay an additional deductible to get your claim.

The reason why you should definitely compare between several policies is the fact that you even compare between the prices of various ice creams of the same flavor to decide which one to buy. You buy the one which is giving you more discounts. The same goes here – some companies provide a wide range of policies to choose from. But, you certainly would go for the one with lesser premiums, lesser deductibles and obviously more coverage.

Other factors concerning the case

Apart from premium, cover, deductibles, there’s more to analyse. Some home insurance policies offer exciting discounts if the house is semi-resilient. For instance, if your house has metal roof installation for better protection or security systems like a burglar alarm or a smoke detector installed, you get great savings on your premium. Do press the insurer to clarify on the availability of such smart savings options.

Again, who cares about the old furniture that you were to replace with new polished ones before this Christmas? You have to revisit your policy checklist and reduce the unwanted coverages like that on your old rusty belongings, and thereby save great deals. Consider all factors to not get cheated by your insurer.

Were you attentive enough while buying your home? If so, you could have bought a home nearer to a fire station or a police station. Surprise, you get more discounts on your premium! Many insurer companies believe that a fire station or police station nearby reduces the probability of risk of damage or theft at the property concerned.

The final remarks are very simple – do get your home sweet home covered. But on the same page, don’t forget to make your insurer sweat heavily to get your right deals. Now, enjoy your tea from your balcony ‘tense-free’!