Home insurance is an insurance that you purchase to protect your property. It can be bought for a private residence, one where you live or one that you own. A home insurance policy is an insurance policy that protects your house from any unseen events. There are several home insurance plans available with IFFCO Tokio and depending on what you opt for, can cover the loss of one’s home, the loss of the contents in the home, as well as the loss of any personal belongings.
Proper home insurance plans by IFFCO Tokio also cover accidents in the home that can lead to liabilities for the owner. A home insurance policy is important, because it helps protect the home owner from a number of financial losses. A standard home insurance policy by IFFCO Tokio has a lot to offer home owners.
What Is Home Insurance?
Home or house insurance is an insurance product that helps protect your house and property. When you choose to get house insurance quotes from IFFCO Tokio, you are also given the option to buy home insurance online.
A home insurance in India is a product that is highly recommended, because it helps protect any financial losses that may occur due to damage to the property. What all is covered in the home insurance plans will depend from one policy to the other, but most of the home insurance plans protect the house from burglary, fire, or damage caused due to weather conditions.
The best home insurance plans by IFFCO Tokio will protect your home as well as the belongings that are kept inside. This best home insurance coverage can be availed as a package, based on what your requirements are.
The basic things that the best home insurance plans cover are:
- Covers your property in case it gets damaged in the event of a theft or a fire
- Covers any liability exposure, like a third party getting injured on the property
Thus, for example, in case of a burglary, the home insurance policy by IFFCO Tokio will pay for the losses that the owner has incurred. The IFFCO Tokio home insurance policy will also provide liability coverage in the case of an accident. You need to choose what kind of policy you want and what all coverage you need.
The Importance of Having Insurance for Your House
It is indeed a good investment to have your own home and it is sure to pay off in the long run. However, it cannot be denied that the whole process of searching, buying, and paying EMI’s is seriously stressful. And on top of that, if you are asked to pay extra for house insurance, then that can seem a bit troublesome. But, you should stop and think of the importance of buying a house insurance policy from IFFCO Tokio before you think it to be futile.
Buying or not buying a home insurance policy is optional. However, in many cases, banks ask you to buy house insurance plans before they give you loan for your house purchase. In such cases, the best home insurance coverage that would satisfy the requirements is based on the terms of the bank.
There are some areas where the risk level is high and thus, the house insurance policy coverage by IFFCO Tokio also needs to be high. If the home that you have brought is in an area where earthquakes are frequent then you should buy an IFFCO Tokio house insurance that covers earthquake damage to property. What extra coverage you need is again based on which location you stay in and also depends on your individual needs.
You, as the homeowner, should also be aware of what calamities could affect the house and then take an informed decision. Like, if the area that you stay in is prone to floods, you should take an insurance policy that covers flooding.
What exactly would be the best home insurance coverage for you is dependent on a lot of factors, like the location of your house as well as the condition of staying in the area where you have purchased the house.
You also need to understand whether you are underinsured and then make the necessary changes to your home insurance policy. Sit and analyse whether your house and its belongings need any additional coverage. If yes, then you will have to cover this gap and buy home insurance online that suits your needs.
Research, value the assets of your house carefully, and plan out the cost as to what you will have to spend in case you want to replace them, and buy home insurance from IFFCO Tokio, accordingly.
Regardless of Whether You Live in an Apartment or Villa, You Need Insurance!
Whether you are staying in an apartment that has been rented or you are staying in your own home, it is highly recommended that you get your house insured. Your rented house is also exposed to theft and damage because of fire and thus, it is highly recommended that you get the best home insurance coverage from IFFCO Tokio to protect your personal belongings.
Everything in Your House Has Some Value Attached To It
Every item that you have in your house has a value attached to it. The house and its construction as well as the contents that you keep in your house are worth some money. This also includes all your domestic appliances as well that come at quite a high price. You may also be having some items in your house with which you have some sentimental value attached. This could be a piece of art or family jewellery.This is another reason why you need to make sure that you get the best home insurance cover from IFFCO Tokio and riders (if required) to cover your personal belongings as well.
What Does The Best Home Insurance Cover?
Home insurance plans by IFFCO Tokio cover any damage that happens to your house in case there is a fire or theft in your house. It also covers your property from any natural disasters. The area where you stay could be high risk and the best home insurance plans will cover that risk as well.
The home insurance policy by IFFCO Tokio is there to help you save huge amounts of money in the case of an eventuality. Imagine you have paid for your home and all of a sudden there is an earthquake and your house suffers a lot of damage. The financial loss that you go through is immense and during that time you might regret not taking a home insurance policy that could cover your financial loss.
A home is more than a place where people live. It is the place where you unite as a family, where you feel secure and comfortable, and it is also the most expensive investment that you would have made in your life.
The homeowner needs to get insurance for their house. It is as important as getting insurance for oneself. Any damage that could be caused to your house could drain you both emotionally as well as financially. You thus need to get home insurance quotes to get that security and finding the right home insurance quotes can actually keep you secured.
1. An Unexpected Natural Disaster Could Happen At Any Time
An earthquake or a landslide can damage your house. It could take away your dream and the house that you have always loved and built and maintained with so much care. Rebuilding your home without any home insurance coverage can be a huge financial turmoil. While the natural calamities and the destruction that they can cause are not in your hands, but you can definitely protect your property and your finances by investing in the best home insurance coverage. The best home insurance policy will not only give you financial stability, but also cover your house and its belongings and give you peace of mind.
Finding and buying the best home insurance is not a very popular option still in India. People end up spending so much on their homes and in designing the interiors, but when it comes to buying the best home insurance policy to protect what they have built, they find it to be a waste of money.
It is important to understand that the best home insurance policy protects what you have made. Buying and decorating a house costs a lot and without insuring it, imagine the amount of financial trouble that you would have to go to if something happens to the property.
The best home insurance plans protect the house even from the ‘acts of God’ so that you are always stress free that the most important and the most expensive investment of your life is safe.
2. Risks Created By Men
There are a number of safety gadgets today that can be placed in all corners of your home in order to protect your house form burglary or a strike. However, to say that they are fool proof would be wrong. There are many ways in which thieves can still manage to steal from the house even with security devices installed. This is again the case where the best home insurance plans could come to your rescue.
You should get home insurance quotes for plans to protect your house from any interior damage as well as any theft. Though not all the home insurance quotes would offer this coverage their basic plan, you can still add this coverage by taking a rider.
3. Legal Accountability
There are many home insurance quotes that also protect you in case of any damage or bodily injury incurred by someone else staying in your house. If you have guests who are staying at your home and in case any injury happens to them, you will be compensated for any legal expense that you would have to bear for the loss or injury.
The home insurance policy could also cover any damage that could happen in your garage or where your domestic help stays on the premises.
4. Temporary Relocation Costs
In case of an eventuality, you may have to stay in an alternate place while your house is being repaired. Some home insurance quotes for policies also include funding for these expenses as well. You can take a home on rent to stay when your damaged home is being repaired.
Extended Coverage for Your Home Insurance in India
A house insurance policy by IFFCO Tokio is there to protect not just your house. It can offer more coverage than that.
Take any house insurance policy by IFFCO Tokio that offers basic coverage and you will see that it gives protection to your home.
- A house insurance plan can offer coverage and give protection to your garage or in case of any damage caused to other parts of your house
- The house insurance policy can pay for the replacement of structures that could have got destroyed like the garage or the shed
- The house insurance plan can also protect your personal belongings, like electronics or jewellery
- The liability coverage in the house insurance plan protects you from any third party liability, like legal fees or any medical expenses
- In case of any damage to your property and where you need a temporary place to stay, the best home insurance plans can pay for that too
Look For Riders If the Standard Limits Are Very Basic
If your home insurance policy has some limitations then you can discuss this with your provider and ask for home insurance quotes that offer more coverage. You could also buy riders to add extra coverage to your home insurance.
There could be many limitations in your home insurance plans and thus, it is always recommended that you take time and read through the fine print. A discussion is recommended so that you know what your home insurance policy covers and what it does not.
Cover the Contents of Your House
The best house insurance policies let you take coverage for the contents of your house as well. Make sure that you disclose the correct valuation of the items that you want to get insured. Some home insurance companies could also ask you for photographs of the belongings, but in most cases they may not ask anything beyond a list of things that you want to get insured.
The location of your home is also very important. Some companies offer added benefits if your house is located close to a fire station or police station. You could let your home insurance provider know about the same and see if you could get some discounts.
Who Should Buy Home Insurance Plans
To get a home insurance policy you need to meet certain criteria. This is different for different companies. However, most companies will have some requirements on the basis of which they sell home insurance plans.
Not only can the owners of the property, but tenants can also get a home insurance policy for the house that they stay in. This will cover any losses that could happen. The belongings are also covered in the case of a theft. When you buy home insurance and if you are a tenant, then take care to read the fine print.
The home insurance policy can be purchased either by individuals or by companies. The individual could be the owner or the tenant of the property.
The home insurance policy can be purchased by residential societies as well. This policy can be purchased by a member of the society and the policy will be in the society’s name. This covers areas that are common for the society.
How to Buy the Best Home Insurance Plans
Before you apply for a home insurance policy, make sure that you go through the following tips, which will help you pick the best home insurance coverage for you:
Do not take the first home insurance policy that you see. In fact, take time and get at least four to five house insurance quotes from companies. There are many insurers who will offer different house insurance quotes and it makes sense to go through each one of them.
There are companies that let you buy home insurance online and thus, save you from paying the middleman. This is highly beneficial, because it helps you to save on some costs. Some of the insurance companies would offer discounts as well.
Most of the companies today let you buy the home insurance policy online and there are also companies that offer cheap home insurance with good coverage.
Look at the services and reputation of the insurance company. Even if the company is giving you the best discounts, but its claim settlement ratio is very low, it might be wise to go for some other provider. You could check for the company’s ratings and you may also ask the representative about the turnaround time.
Finding cheap home insurance isn’t the only criterion; the company’s financial ratings are very important and should be seen. This can help you decide whether the company will be able to settle your claim or not.
How To Find A Home Insurance Plan That Is Affordable?
Many think that buying a home insurance policy will protect their house and belongings from everything, but one needs to understand that the home insurance is designed with some exclusion as well. Some of the things that people should keep in mind when they go to buy home insurance are:
If the house gets damaged to such an extent that it cannot be repaired soon enough, then the insurance provider may give you a temporary accommodation till the time your house gets repaired. Read the policy document carefully to understand if this cover is offered to you by the insurance provider.
The cost to repair or restore property is taken by many as something that the home insurance policy will cover. You may think that an old appliance at home will get replaced in the case of damage if there was a fire at your home. But many insurance schemes will not have this option available and the cost would be based on what the machine was worth when it got damaged. You will then have to settle for the depreciated value of the machine which will be way too less for the cost of buying a new machine.
Assessment of loss – The home insurance policy provider will send an assessor to see the extent of damage that happen to your property. The evaluator will give you a quotation, but it is important that you keep your bills, because this will help you with further negotiations.
Get all your doubts resolved before you purchase a home insurance policy. You should take care to read the fine print. The home insurance plans will not cover all that you may need. It is thus your duty to go through the plan before you buy one. This way, you save yourself from any nasty surprises.
What Do You Need to Know before You Buy the Best Home Insurance
Ensure that you follow these steps before you buy the best home insurance plan:
It is crucial that you evaluate the location where your property is located. You need to know how prone to risk your house is. If the area that you live in is secured and is not prone to many natural disasters, then you could opt for a basic plan. However, if you stay in areas where the chances of earthquakes or floods are high, you need to buy the best home insurance plan that offers extra coverage. Considering these aspects will help you to buy the best policy as per your needs.
The sum insured should be correct. The best home insurance policy will offer coverage for situations that are out of your control. You thus need to take care to buy home insurance that gives you maximum benefits. Make sure that the best home insurance policy offers protection for the components of your house as well.
The best home insurance plan covers the complete house. You should consider the built up area and the total cost for construction. This is the reinstatement value.
In short, you need to make sure that the sum insured is sufficient to cover the cost of rebuilding your house in the case of any unexpected event.
Based on Your Individual Needs
You need home insurance based on what your individual needs are. The home insurance company will also have some exclusion on what they cover, so you need to consider what your insurance needs are and then choose the best home insurance cover accordingly.
It’s Not Just about the Premium
Buying a cheap home insurance plan could be a real challenge. With so many plans available in the market and with so many clauses in each one of them, it can be a real task to know which one is the best suited for you.
A common question that creeps in the mind is whether it is a good idea to compare cheap home insurance policies with and decide based simply on the premium amount. But, this is not something that is recommended. Every policyholder’s coverage could be different and should be something that works for them. Look for the best home insurance coverage and claim settlement ratio of the company and other factors to make your purchase decision.
The Home Insurance Plan Should Match Your Lifestyle
The insurance home plan that you buy may not be what your neighbour or friend would find to be perfect for them. This is because every individual’s choices are different and thus, what works for you may not work for someone else.
The insurance policy that you chose for your home should fit your requirements and your lifestyle. Ask yourself some of these basic questions to understand if the policy is right for you:
- Does the home insurance plan give the coverage that you need?
- Does the insurance policy take care of the art and content of your home?
- Does the policy cover costs of water damage?
Your family status is also important. Questions like whether you have small kids at home or if you have aged parents, all are important things that should be considered before buying a home insurance plan. If you travel a lot or if you have pets at home then you may want to buy a high worth insurance home plan policy.
Consider the Deductible
Deductible is the amount that needs to be paid when putting in home insurance claims. This amount is paid by the policy holder and only then does the insurance company pay for the rest.
The higher is the amount of deductible, the lesser will be the premium that the home owner would have to pay. However, the higher is the amount of the deductible, the more money you will have to shell out at the time of putting in home insurance claims. So, you need to weigh both sides properly before you can come to a decision about the deductible.
Understand the Home Insurance and its Coverage
To begin with, it is important to know what the home insurance policy covers. Most people do not even know that home insurance could also cover the personal belongings. Thus, it is important that you check what the home insurance plan coves for you. Every home insurance policy that you buy will be different and you will not come to know what is covered and what the policy does not cover if you do not read it fully.
Take time and meet brokers to understand what the home insurance plan covers. You want to look for the policy that suits you as an individual and also gives you the best value for money. Look for a home insurance plan that suits your requirements. At the end, you want to be insured and have the peace of mind.
Getting home insurance estimates and rates is not that hard, given the many options to buy home insurance online. You should know what the cost to rebuild your home might be and also what the costs of replacing the contents of your home are. This is the way how you will be able to place a value to your home insurance policy and you will thus be able to narrow down the choices.
The costs to re-build will increase and so will the home insurance rates, on a yearly basis. Make sure to keep an eye on these. You could always ask your insurer to give you any further details that you may need.
Ask IFFCO Tokio for any additional cover that you think is required. Home insurance can cover things that you may not be aware of, so it is always best to ask.
Get a true valuation of the contents of your home. When you have an up to date valuation of your house contents, it could save you from many surprises when you need to make claims.
If You Sell Your Home
This is a common question that creeps into the mind when buying home insurance plans. If you sell the house, then let the insurance company know. You will be able to cancel the policy.
Ask questions to your insurance home plan company and this is how you will be able to get the best home insurance deal that meets your lifestyle and your requirements. Understand what the insurance cover is and also check out if the standard plan is sufficient for you or if you need to buy a rider.
It is advised that you compare different house insurance quotes by IFFCO Tokio for your and ask questions to see which home insurance plans give you the best advantage.
Take time, research well, and be very clear on what your requirements are.
Know the Claim Ratio of the Insurance Company
It is a big mistake if you go ahead and just buy a cheap home insurance that offers you a discounted premium rate. That should not be the only criteria based on which you purchase a house insurance policy. An important thing to look at is the claim settlement ratio of the company.
There is a lot of formality that is involved when it comes to property insurance and thus, it is your duty to do your homework well when looking at house insurance quotes. You could do an internet search for feedbacks on a company. It is also important that you look for good discounts on the premium, but it is also important to look at other factors before settling on a particular house insurance policy.
The Fine Print Should Not Be Missed
The house insurance policies are pretty much the same. Make sure to check the terms and conditions of the policy. There could be some hidden clauses which you should be aware of. If you find that there is any error then let your insurance company know and also ask them to make the amendments.
Some Key Points that You Need to Know Are:
- Know what the special limits of the home insurance policy are
- How are the different home insurance plans tailored and how do they meet the demand of different lifestyles
- What features should you look for and what clauses should you pay attention to
- How do you make home insurance claims
- Understand the liability cover
Knowing the basics of what your insurance policy covers is crucial. This includes the insurance value of your property. Read through the policy details.
Every policy that you buy offers coverage and has limits. The limits include the maximum amount that the home insurance policy will pay to cover losses incurred. You need to make sure that the policy covers the rebuilding cost of the home or to replace your belongings in case they are damaged or they get destroyed.
Insurance to Value Ratio for Home Insurance
It is important to be notice if the home insurance value is too low. When the home insurance to value ratio is low, it means that you may have to face some costs that are exceptionally high when you file home insurance claims. This means that you are not covered adequately by your home insurance policy.
Comparing Home Insurance Policies
It takes lots of patience to understand which home insurance policy is right for you. Most people do not look beyond the annual premium of the plan and buy cheap home insurance without considering the coverage. But that is not the way you should shop for a home insurance plan.
There could be a significant drop in the premium amount when you choose less coverage. But this is sure to create problems when your home insurance claims get denied or do not offer a sufficient amount as claim in case of an unexpected event.
You need to compare everything when you buy home insurance online. Cheap home insurance is not always bad either. You should compare policies and check for the coverage, the premium charges, claim settlement ratio, as well as customer service feedback for the insurance company. All these are important factors that should be considered and should not be overlooked.
How to Get Best Home Insurance
- Shop around a bit to get the best home insurance coverage
- Give an actual value to your belongings and this will ensure that you get the optimal coverage
- Know the coverage - Most people go ahead and look for combined policies; one that will cover the contents of the house as well as the building. However, this is not a thumb rule and at times you may end up saving more when you take the coverage separately.
- Be clear about how much cover you need. You should be honest to yourself and also about what extras you need in order to save money. Like, suppose you stay on the ground floor, then you need extra coverage for your garden. But, those staying on the top floor do not need that.
- Choose to make annual payments, because when you pay monthly, you end up paying more.
- Take benefit of the no claims bonus. If you do not make any claim during a policy term, then you can enjoy no claim bonus when you renew your policy. If you however, have made claims, your insurance premium may be higher.
Buy Home Insurance Online to Save On Costs
When you buy home insurance online, take care to go through these points to understand how you can save on the policy:
IFFCO Tokio offers different home insurance coverage in different policies. So, you need to go through the policy and the home insurance estimates thoroughly to understand what would suit your needs best.
Raise the Deductible
The deductible is basically the amount that you will have to pay upfront before your home insurance claims are processed. The higher the deductible, the more is the amount that you have to pay yourself. And the higher is the amount of deductible, the higher is the amount that you can save on the premium. Also, if the area that you stay in is a disaster prone area, then you may need a separate deductible.
The rebuilding cost and the amount that you paid for the house are different
Remember that your house is built on a land and the land is not prone to risks. So, that would not be included in your home insurance policy.
The same insurance company
Some companies, like IFFCO Tokio, sell other insurance products as well and many times, you can get multiple policy discounts when you buy more than one policy from the same company. This is an option that is definitely worth exploring.
Your home should be disaster resistant
You could consult your agent or IFFCO Tokio to understand what can be done to make the home resistant to most natural disasters. This could help you to save on premium too.
Improve the security of your house
If you have a smoke detector or a burglar alarm installed, then this could let you enjoy some more discounts. However, there may be some requirements as to the exact equipment or company that you need to opt for to be eligible for the discount. Take care to find out if the system that you install actually makes you eligible for the discount. Find out what the insurer recommends and how much you would be paying for the device. It is also important to know how much ultimately you would be saving on the premium.
Look out for other discounts
There are many other kinds of discounts that are available in the market. For example, there might be better discounts if you have retired.
Have a good credit score
Having a good credit score helps. It helps cut on the cost of insurance. The credit information of every individual is watched very closely by insurance companies to decide whether one is liable for discounts. If your credit score is bad, the insurance company could charge you higher home insurance rates. To avoid such a scenario, pay your bills on time and make sure that your credit score is strong. This works wonders and sometimes even lets you grab some discounts.
Review your limits and the asset at least once a year
You need to ensure that the policy that you buy covers any major additions that you have made in the year. Also, you do not want the policy to give you coverage that you do not need. You may also want to reduce the coverage of some of the belongings at home. Thus, it is important that you keep revaluing your belongings and home.
How close the house is to the major services
If you have a fire station or a police station located close to your home, then you may get a discount through the insurance company. This is because companies feel that having a fire station or police station reduces the risk of damage or theft at the property.
Before you go shopping for an insurance policy, make a list of things that could let you enjoy some discounts. You may then ask the company representative if there are any additional discounts that you are eligible for. You need to be sure that you get all the coverage that you need, but at the same time you do not want to be paying unnecessarily extra premium.
Owner’s Home Insurance
It is a dream for many to own their own home. There are a lot of emotions and sentiments attached to it. You have your dreams linked to that home and the last thing that you would want is to see your house in shatters. Imagine a fire or a theft at your home. This could shatter your dreams completely and also pinch your pocket. It is thus, advised that you get the best home insurance coverage from IFFCO Tokio for your home, so that it is safe in the case of any crisis.
However, not every house insurance policy that is available in the market can actually help you out. You need to take extra care to ensure that the home insurance policy that you buy gives you the required coverage and is also not priced very high. You want to be assured that the house insurance policy protects your house and your belongings, and keeps you secure financially. The house insurance plan should secure your home and protect you in the case of any unexpected crisis.
There are house insurance policies that compensate you in the case of an accident or in the case of a theft. The house insurance policies could also pay for any repairs in your house and also in cases of renovation. Your house insurance policy would also pay or any temporary accommodation that you may need in at the time your home is being repaired.
In the case where there is a fire breakout in your house, then the house insurance policy can cover the cost of valuables as well as for any repair that you would have to do to your house. Thus, it is crucial that you choose the right house insurance plan. There are a number of plans available at IFFCO Tokio and one plan does not fit all. Every individual has different needs and thus, it is important that you shop for a house insurance policy with care.
Why Do You Need an Adequate House Insurance Coverage?
Financial disaster is not uncommon, even in today’s life. This is because most people are not well prepared and don’t save enough for their future. It is important that when you are buying a house insurance policy, you take care to value all the stuff you have at home. Yes, you will be saving on the premium if you opt for less coverage, but in the case of any unforeseen event, this could be really impact your finances.
You will end up in financial loss if you do not take a proper house insurance coverage. In the case of any unexpected event, if your property or belongings get damaged, it could impact you financially.
Landlord Home Insurance Policy
The landlord’s home insurance is a kind of policy that gives protection to the home owner in the case of any financial loss at the property that they have rented.
The property is an asset and the value of the property goes up with time. This is why many choose to buy property to make smart investments. Renting the property has become common now, because of the high returns. But, the problem here is that the tenant may not really care for your house very well.
When you purchase landlord home insurance, you can relax, because the policy covers the risks that are associated with renting out property.
The landlord insurance gives protection against:
- Damage to property which includes the building structure and to personal property.
- If the property cannot be stayed in because of damage incurred due to a cause covered by your home insurance policy, then the policy will cover you for the loss of rental income too. The reimbursement gives you time to repair your house.
- The liability insurance will cover the expenses and the claims in case of any bodily injury to a third party that could happen at your property.
- You are also given coverage against a natural disaster or manmade risks.
Renter’s Home Insurance
Renter’s insurance is something that is still not very popular in India and this is mostly because rental homes are temporary. However, it is important to understand that you have valuables at home and a theft can make you lose them all. Thus, it is highly advisable that you get your home insurance even if you are staying as a renter.
There are plans that let you cover any loss to belongings in the case of an act of God or a manmade act. This saves your belongings and valuables that you have at home.
The renter’s home insurance policy offers coverage in many cases:
- In case of a fire at home or a theft, the insurance will cover your belongings. The insurance purchased by your owner would probably only cover the outer structure of the house.
- The insurance policy will let you replace the belongings that you have lost. This could include the costly electrical appliances and things of everyday use.
- Any third party injury that happens on your rented property can also be covered when you take the renter’s home insurance.
- Any damage that happens to the property also gets covered under this plan.
Renter’s Insurance and All That It Covers
The renter’s home insurance covers many unforeseen circumstance, like a fire or a catastrophe. It also covers the tenant in case of a fire.
Many renters do not understand the importance of buying a home insurance plan. But it would be very shocking to know that a single calamity can actually wash away all your valuables in no time, leaving you in major financial problems. The cost to replace valuables at home can be really expensive.
You should not just consider the large items at your rented home, like your TV, iPhone, etc., but smaller items too are equally prone to get stolen and thus, it makes sense to cover them as well.
Common Inclusions in Home Insurance Policies
The common inclusions in most of the home insurance policies are for damages caused by:
- aircraft damage
- missile testing operations
- earthquake cover
- theft – The contents including silver items, precious stones, and jewellery, provided that all these are kept locked in your home
Exclusions In The Home Insurance Policy
The exclusions in most of the home insurance policies are:
- Wear and tear or loss because of depreciation
- cash loss
- act of any foreign country or a war
- nuclear war
- loss of an electronic because of over-use
Some of the unexpected hassles could end up costing you a lot when it comes to your home. Some other common exclusion in most home insurance plans:
- Movement of the earth –cases of damage by erosion or volcanic action are in most cases excluded from the insurance plan. You may buy a separate rider to add to the plan.
- If you do not maintain your property well and then the property gets damaged. If that happens, then the policy will not cover for the damage.
- Any intentional loss, like if the policyholder damages his property himself, the damages will not be covered by the insurance company.
- Any pre-existing damage like any wear and tear or any defects
- There could be damage because of rodents at home and most of the standard insurance policies will not cover this.
War and nuclear accidents will not be covered.
- If you have a small business running at your home, then its equipment is also not covered under the home insurance plan.
The homeowner should take care to understand what their policy excludes. They can check the policy wordings for their home insurance online.
What Are The Parameters That Decide The Home Insurance Coverage?
The following parameters are looked at when deciding the home insurance coverage.
Type of plan
The home insurance plan that you take from IFFCO Tokio will depend on whether you want to insure only the building or the content in the house as well. The home structure will be factored if you select the building only. If you opt to insure the content as well, then the personal belongings and other expensive content will be considered for coverage. You could also opt for a comprehensive cover that covers both.
The value of the property
The value of the building is calculated as per the cost of reconstruction. This will be lower in most cases when you compare it with the market value of the property. You need optimum coverage to take care of the cost of rebuilding the house. This is calculated based on the built-up area of the property and the construction rate which is taken for per square feet.
Value of the content at home
You need to specify the value of the content and jewellery that you have at home before you buy the insurance policy. The insurance coverage should be able to cover the costs for the same and should provide adequate coverage.
How Is The Sum Insured Calculated And How Can I Arrive At A Figure?
Before you buy a home insurance plan, it is important to understand what sum insured you need, so that you buy a plan best suited for you. The insurance company will be paying the full replacement cost, subject to the maximum of the sum insured. This will only pay for the construction cost and not the cost of the land. The structure will be according to the reinstatement value and the content of the house will be insured under the market value approach.
This is not a thumb rule and different insurance providers have different methods to value the contents of the house.
What Is The Method To Calculate The Premium For A House Insurance Policy?
The home insurance rates primarily depend on the type of policy you buy. Other than that, the premium amount is affected by various factors, like the sum insured, the cost of construction, and the built up area of the property. The cost of construction will be calculated based on the construction quality and the locality in which the property is based.
You could opt for a pure structure cover in case you so not want to spend a lot on the home insurance plan.
The pure structure plan will not cover the content of the house and will not cover any of the belongings that you have either. It is obvious that if you opt for the pure structure plan then it will be cheaper than opting for a total home insurance, in which the content of the house is also covered. Also, the possibility of the household items getting damaged or being stolen is more than that of the outer structure of the house getting damaged. So, think wisely before you opt for a home insurance plan.
Use Home Insurance Cost Calculators
To know what the premium amount you should be paying for home insurance, you can use a home insurance cost calculator.
Dangers of Home Being Underinsured
You should make it a point to review your insurance plan periodically. This is important, so you are not underinsured. If the policyholder is underinsured, they will have to pay a lot from their pocket in case of any damage and the claim amount will be very low.
Most people do not take home insurance policies, because they feel that the probability of something happening to their house is very less. There are others, who buy a home insurance policy that offers very basic coverage and thus, they are left underinsured.
Make sure that you get coverage for the valuables that you have at home. If you have paintings or any jewellery at home, you should take coverage for them too. Get the valuables evaluated and buy insurance for them. It is also a good idea to take a photo of the jewellery, which makes it easier to put in home insurance claims if it gets stolen or lost.
Look at your home and think objectively when you go to buy home insurance policy. You could also get advice from an expert to make sure that you have noted down all details and taken adequate coverage. Do not overlook any item at home.
Underinsurance happens because most people do not do the due research while buying policies. They are ill prepared to face any eventuality. A major reason here is that people tend to look at the premium amount and then think that if nothing happens then this amount goes to a waste. They thus either drop the idea of buying home insurance plans or end up buying only basic policies that cover almost nothing.
Some Tips That Will Let You Choose the Right Home Insurance Plan
Many companies offer home insurance in India and there a number of plans available for purchase today. All you need to do is to read through the policies and see which one is the best suited for you. What may have worked for your friend may not work for you. Thus, do not follow any advice blindly, but do your own homework to select the best home insurance plans.
Be Careful Of These When You Go To Buy a House Insurance Policy
- Make sure that all your documents are in place, because this could cause a problem when you go to claim insurance
- The policy should clearly mention your property address
You need to make sure that all these are in place; else, it could cause an issue when you put in home insurance claims.
What You Should Not Do When You Go to Buy a House Insurance Policy
- When you go to fill up the proposal form, never request anyone else to do it for you.
- You should in no condition hide any details about your property when you go to buy home insurance
- Do not overstate the property value, because this will lead to disputes when you put in home insurance claims
House insurance does not protect you in the case of damage because of age; however, the house insurance policy will protect you in the case of any unexpected event, like in case of a fire or theft. Buying a house insurance policy can keep you less stressed and give you peace of mind.
Get Your Property Evaluated When You Make Any Changes or If You Add New Equipment
We all know about the insurance to value ratio and how it helps you to gauge whether the property is well insured or not. This is the amount that the house insurance policy covers your property for, as compared to what would be the replacement cost of the house. If the ratio is low, you do not have sufficient coverage.
Suppose you have a low ratio and there is a fire in your house, your belongings get destroyed and the settlement amount that you get from the house insurance policy is not sufficient to cover the costs. So what happens then? You need to pay out of your pocket. Also, suppose you have bought a policy for a low sum insured, but values keep increasing by time. If anything were to happen, you would have to pay quite a lot of money to cover that gap.
This is the reason why you need to revaluate house insurance to value ratio from time to time. Also, if you have any new equipment added at home or any additional structures built, the house insurance policy should include that in the coverage as well. If you keep the original value of the property as it is and keep adding new things into your home, then it does not offer sufficient coverage at this date.
Why You Should Buy Home Insurance Plans from IFFCO Tokio
IFFCO Tokio has been one of the most famous brand names when it comes to rolling out insurance plans for their clients. With a high claim settlement ratio and top quality customer service records, IFFCO Tokio is definitely one of the best companies offering home insurance online.
IFFCO Tokio Home Insurance Plans
IFFCO Tokio has rolled out two major plans in home insurance. It is not only affordable, but also some of the best home insurance plans available in the market these days. Let’s have a look at the home insurance plans from IFFCO Tokio.
The Home Suvidha policy from IFFCO Tokio can cover your house and protect your family from the perils of financial issues for starters. Then, it also offers coverage for your home from any kind of damage which might have been incurred due to natural or man-made causes. It is a simple policy that has a sum insured in place and helps you with different options, so that you get nothing but the best.
Depending on the requirement you have for your house, pick out the sum insured and pay premiums regularly to get the benefits of the IFFCO Tokio home insurance.
The home insurance policy protects you finically in the event of any property damage caused by an “Act of God”. This could include cyclones, floods, earthquakes, etc.
The home insurance policy protects your house from interior damage as well as in case of theft.
Home Suvidha helps you ensure the safety of your house and your things together in a combo plan. The plan offers coverage against different scenarios, such as the following:
- Natural calamities : Natural calamities can strike at anytime and anywhere. With global warming on the rise and human activities taking a toll on the earth’s physiological processes, earthquakes, floods, fires, explosions, and so on are unavoidable at times. It can get nasty and if your home is not protected against all odds, it can lead to a number of issues financially as well as practically. Getting some house insurance quotes and choosing the right plan is one of the best decisions that you can make in your entire life. It won’t stop the disasters from happening, but will offer you a safety net financially.
- It protects you against man-made issues : Have you ever thought what your contingency plan would be like if there is a war that breaks out or something like a theft or robbery happens at your home? It is not only your hard earned money that is getting stolen, but it also puts your home at great risk or damage, which only makes it exposed to more issues. It could happen that thieves cause unrecoverable damage to your place in an attempt to rob you. It can lead to a great financial burden that can lead to other issues that can be traumatizing for you. So, what do you do to stay free of all such hassles? You get that home insurance done and sanctioned on time.
- Comprehensive coverage : The plan’s coverage includes your parking lot, your garden, your terrace, the foundation, a swimming pool, and everything that you built from scratch. The right home insurance plan can keep every inch of your property protected, so that you do not have to suffer in case anything bad happens to your home. With additional coverage extension, you can enjoy benefits like no other under the IFFCO Tokio Home Suvidha Plan.
- The house insurance by IFFCO Tokio eases you off of any financial burden which might add to the stress and woes in case there is an eventuality. Guarding your home is your responsibility. Hence, if need be, it should be always covered, given that anything can happen anytime.
The Home Suvidha plan is one of the most convenient plans and is a complete protector plan. It covers you comprehensively when it comes to any unexpected home related events. Being a simple policy it can help you in many stages. It is only your prerogative to choose which home insurance quote is right for you and how you want to customize that policy in general.
It Offers Coverage from Fire: Be it any situation which allows a fire to start and cause damage to the property, it is bound to be covered by your home insurance plan. You cannot control the situation or the circumstances of the events, but you can stay prepared at all times. The contents your premises should be protected. It could be a fire due to explosion, overflowing of tanks, or any allied issues, such as natural calamities like a flood, cyclone, or anything along similar lines; Home Suvidha offers coverage for all of it.
Theft: It can become troublesome given that thefts happen every single day. It would be very careless to leave it to fate every time. You might have expensive equipment, loss of which can cause severe financial damages if exposed to the threat of theft in general. Therefore, getting the Home Suvidha policy by IFFCO Tokio will help you stay covered and protected.
All Equipment: You get coverage for issues that damage your tangible property, such as the TV or the microwave or the AC. Aerial fittings that come with the equipment are also covered under the plan. If the equipment is not older than 7 years old, the entire damage is borne by the insurance company. All items that have been in the house and belong to your family members or you are covered. You need to present legitimate bills when you put forth your claims for the same. You need to protect the contents of your house. As a home owner, you should have enough insurance to protect the outside structure of your house and also the belongings at home. This could be the furniture or the electrical appliances that you have. You can also take cover to protect the jewellery that you may have at home. The items could get damaged because of water flooding or fire and this would spoil the valuables. It thus makes sense to get them covered.
Personal Accidents: Any injuries or issues caused to you on the property are also covered under the personal accident add on.
Temporary Relocation: Most insurance companies also cover alternative accommodations in case the house gets completely damaged and needs repair. This will be for a short time period only. Some insurance companies also cover the fee for the architect to redesign the house, personal accident, and cost of removing the debris. For this however, you might need to buy extra riders that will come at an additional premium amount. Make sure to go through the riders that the insurance company provides and buy those that you need.
Liability Coverage: The home insurance could also cover an accident that could lead to third party liability in the house. The home insurance policy is important because it helps protect the home owner from major financial losses. Any bodily injury that occurs has to be covered by the insurance company irrespective of the damages caused. It could be partial or complete permanent disability as well.
Kutcha Houses Policy: Damages to the house can mean anything. It could be simply replacing a component or it can also mean reconstructing the entire house. The best home insurance plan should cover the house structure. You should consider the built up area and the total cost for construction. This is the reinstatement value. The agreed value to calculate the best home insurance plan is the area of the land the house is built on and the total cost of building the house. The indemnity value of the property is the cost of construction and the property depreciation value because of the age of the property. It is possible that the house needs reconstruction and it is only natural to under-estimate the kind of cost that reconstruction takes. Therefore, there are stringent policies which are extended as part of the plan. It could be such that the policy doesn’t cover your kind of house. Therefore, it is mandatory that you go through the documents to understand if your house is the kind that is covered under the policy.
Houses which are made with imperfections, such as temporary or crude material, or makeshift material to make it work for the time being are usually excluded from the policy. Damages are covered only for permanent property which is sturdy and can stand the test of time easily. All outbuilding equipment, gates, fences, fixtures, garages and the other properties of the house should not be of kutcha quality. It should be strong, durable, and long lasting. Is your house qualified to withstand that agreement document? Read the policy documents before you sign the dotted lines.
Personal Computers: Installation of computers in the household is not news to anybody. Given that it has now qualified as one of the basic necessities of current times, it is only natural that you have to get one for your own home too and protect it. The cost of repairing it for damage caused due to natural causes and the likes are borne by the insurance company. Inspection tests are conducted before sanctions are cleared for the damaged property. If the equipment is less than 5 years old, only then does it qualify for coverage under the policy.
War Risk: War related issues and risks are not covered under the plan. It could be a war of any nature. For detailed information of war related risk, you could always contact your insurance company, which can give you a clear picture about what is covered and what is excluded in general.
Confiscation: Any damage due to confiscation of property under government measures, requisition, or any kind of detention is usually not included in the policy document, for it is listed as exclusions. It could be unlawful property, it could be on government land where construction is not allowed, it could be an area which is required for government projects and the likes; in such cases the area may be confiscated. It is unlikely for the insurance company or provider to give you any protection against that, given that it would lead to the implementation of policies against the law of the land.
Wear and Tear: The property undergoes wear and tear. However, as it grows older, the structural strength starts diminishing, which is an added expense and causes a lot of issues later on. Therefore, any generic wear and tear or depreciation of the building is not covered under any home insurance plan.
Damages Due to Movement or to Consumable Items: Consumable items for the house comprise of things like bulbs, lights, fans, wires, seals, belts, tools made of glass, porcelain, ceramic, and the likes, and are not covered due to their fragile nature. Any cost of damage that is incurred due to the movement of the objects from one place to another is also not covered by the policies in general.
IFFCO Tokio Online Home Family Protector Insurance
Home is one of the most prized possessions that you have. It is only obvious that you would want to opt for something that is secure and beneficial for and protects your family and home in a comprehensive package. Coverage under the online home and family protector plan by IFFCO Tokio includes:
1. Natural calamities: Natural calamities can strike anytime and anywhere. Calamities like earthquakes, floods, fires, explosions, etc. are unavoidable at times. It is therefore important to ensure protection of your home from such eventualities.
2. It protects you against man-made issues: There are several man-made risks like riots, thefts, burglaries, acts of vandalism, etc. that can lead to your property getting damaged. Under the right home insurance quote, you can opt for coverage against such issues as well.
3. You get equipment coverage: You can cover all your household items under the policy. It offers additional protection without the need to purchase rider plans that only adds to the financial aspect of the policy.
4. Personal accident or injury: The plan also offers personal accident injury coverage. The plan is meant to protect you and your family members from uncertain situations.
5. This plan is a complete protector plan: It offers several other kinds of protection as well, such as loan repayment protection, increased living expenses protection, breakdown of any equipment in general, etc.
6. Coverage in case of fire: If a fire causes damage to the property, it is covered by the home insurance plan. You cannot control the circumstances, but you can stay prepared. The contents your premises are flammable and should be protected.
7. Theft: Thefts happen every single day. You cannot leave it to fate every time. Losing expensive equipment can cause severe financial issues. Getting home insurance from IFFCO Tokio will help you stay covered and protected.
8. Equipment Coverage: Events or issues that lead to the damage of tangible property such as TV or microwave are also covered. You need to protect the contents of your house. As a home owner you should opt for enough insurance to protect the outside structure of your house and also the belongings inside.
9. Personal Accidents: Injuries caused to you or a third party on the property, because of reasons that are covered under the policy, are also covered.
10. Alternative Accommodation: Most insurance companies give you coverage for alternative accommodation in case the house gets completely damaged and needs repair. This will be for a short time only. Some also cover fee for architects to redesign the house and for the cost of removing debris. For this, you need to buy riders that will come at additional premium.
11. Personal Computers: The costs of repairing computers from damages caused due to natural causes are borne by the insurance company.