Things You Need to Know Before Buying Home Insurance Policy

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 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 neighbor 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 the costs of water damage?

Your family status is also important. Questions like whether you have small kids at home or if you have aging 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

A deductible is an amount that needs to be paid when putting in home insurance claims. This amount is paid by the policyholder 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 homeowner 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 their 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 a 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. In 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 you 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 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 that 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 are 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 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.

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