Things To Know Before Buying Home Insurance
Buying a house means significant investment, and with it comes the responsibility to safeguard your asset in an appropriate manner. And the best way to keep your asset secure is by purchasing house insurance. A disaster can strike uninformed, and you wouldn’t want your biggest investment getting damaged, leaving you financially strained. That’s exactly why protecting your house with a home insurance policy is extremely important.
Home insurance is a general insurance policy that can be purchased to safeguard your home and its contents against any unforeseen events of loss and/or damage. A standard home insurance policy covers your home and its belongings, and also any third-party liability.
Although, buying home insurance isn’t mandatory by law, but it is pragmatic to secure your biggest investment against any unforeseen event. In this blog, we will discuss everything about a home insurance policy to ensure that you make an informed choice when buying one.
Why Buy Home Insurance?
Your home, without a doubt, is one of your biggest financial investments. Such is the nature of this asset that it remains vulnerable to natural calamities, burglary, vandalism, and third-party liabilities that your home is exposed to. Hence, it is important to secure your home from all these perils with a house insurance policy.
Home insurance - Inclusions & Exclusions
In order to ensure that you purchase the right cover for your home, it is important to understand the inclusions and exclusions pertaining to homeowners insurance by IFFCO Tokio.
A standard home insurance policy by IFFCO Tokio safeguards your property in the following ways: -
1. Damage to the Structure
It secures damages to the structure of your property and other things attached to the structure against the listed perils. In addition to the structure, the policy will cover any damage to fittings, such as plumbing, wiring, heating, etc. In the event of damage or loss due to the covered perils such as fire, lightning, theft, vandalism, etc. you will be reimbursed for the repairs or for rebuilding your house.
2. Loss or Damage to Contents
Home insurance policy also covers any loss or damage to the contents of the house, including furniture, appliances, etc. that are secured against the listed perils. On payment of additional premium, you can get cover for precious items like jewelry, cash, important papers, etc.
3. Third-Party Liability
Homeowners insurance also offers third-party liability cover which includes the financial loss suffered for injuries or damages to third-party on your property.
4. Accommodation Expenses when Property is Getting Rebuilt or Repaired
If your house has suffered total loss or is under repair, your home insurance policy will pay for the cost of your accommodation till your house is fully repaired or constructed.
Common conditions which our home insurance policy does not offer cover are as follows: -
Any loss or damage caused due to -
1. Depreciation as an outcome of age or negligence or due to willful means
2. Human activities, like war activities, invasions, hostilities, act of foreign enemy, etc.
3. Consequential loss of any kind
4. Nuclear war
5. Contamination and pollution
6. Over-usage or too much pressure on any electronic equipment
7. Loss of cash, jewelry, and other precious items, unless specifically declared
Tips for choosing home insurance
Before you purchase home insurance online at IFFCO Tokio, read these tips to make your purchase a successful one-
1. Understand Insurance
In order to choose the right policy as per your requirements, you need to understand the policy, its inclusions, exclusions and other clauses. Only when you understand the policy well, will you be in a position to assess your requirements and negotiate for better terms.
2. Shop Around
Shopping around is a term that’s well associated with insurance. Compare different policies for home insurance online on various aspects such as cover, limits, deductibles, exclusions and inclusions and premium.
3.Choose a Financially Stable Insurer
Always choose a reputed and financially stable insurer to ensure that your insurance claim settlement is smooth and hassle-free.
4. Check Claim Data
It is important to check the claim data of the insurer before making a purchase. Incurred claim ratio and claim settlement ratio, will give you an idea of the efficiency of the claim process of an insurer.
5. Fill in the Correct Details
Answer all the questions in the insurance application form accurately. Giving inaccurate information will do no good as it may ultimately lead to the claims being turned down.
6. Choose Riders
You can buy add-on cover or riders to extend the cover of a standard insurance policy at an additional cost. Look for the riders that are offered with your insurance and buy the ones that you feel will give you an extended coverage.
Be completely informed before you purchase a home insurance policy as it will help you make an informed decision, and also save you from any unwelcome surprises at the time of claim initiation.
**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**