Tips to Choose 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.
Things to Consider When to Buy 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.
Things to Avoid While Buying 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.
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.