May 11, 2021

Buying Tips For Your Home Insurance Policy

Buying Tips For Your Home Insurance Policy

A home is one of the most precious investments that the majority of individuals make. Not only precious, but it also ranks among the most valuable investments. Thus, it becomes of prime importance to ensure protection for your home from various perils which may range from natural disasters to man-made threats.

This article elaborates the tips to remember when you select the perfect home insurance policy to ensure complete protection from any kind of dangers and damages:

#1 Understand the policy

The first step in selecting the right home insurance plan is to understand the policy, terms and its coverage. Once you are familiar with these details, then only you can choose a policy. Further, understanding the terminologies involved can help you to have a greater understanding when looking for home insurance plans.

#2 Analysing your needs

Before you start shopping, understand what your coverage requirements are. Say, you are a homeowner and you need to insure the house along with its appliances. On the other hand, home-renters will opt for coverage only for the home appliances and not for the accommodation.

#3 Compare the available policies

Once you have finalised your requirements and you must start looking for the type of plans that check all the boxes. It can be easy with comparing home insurance quotes from different insurers. This involves comparing the coverage, the exclusions, the limits, the deductibles and more. Buying a comprehensive plan that ticks all your requirements will help you get suitable coverage. All this while you don’t exceed your budget.

#4 Know the financial strength of the insurer

Once you shortlist suitable home insurance plans, you must also oversee the financial strength of your insurer. Claim settlement ratio is a simple metric that can help you understand how many claims are settled by the insurer from the total applications received. This data is also published by the regulator, the Insurance Regulatory and Development Authority of India (IRDAI) in its annual report.

#5 Select additional riders to extend policy coverage

Insurance companies allow you to choose additional riders that significantly enhance the policy coverage for a fraction of a premium increase. For instance, add-on coverage can be opted to insure jewellery and artefacts. Compare plans & the impact of add-ons using the online home insurance premium calculator.

#6 Fill the application correctly

Ensure you provide complete details in your policy application. Your application form will require you to provide various details about your home, the area, the amenities, the locality and more. Moreover, a comprehensive coverage includes protection for the amenities along with the structure of your home. So, the appliances that your wish to insure need to be specified on the date of application.

Keep the above tips in mind when selecting a general insurance plan for your home. To summarise, carefully look at your requirements and then select a policy that provides adequate coverage. Apart from that, do not forget to verify the insurance company’s credentials regarding the settlement of claims. It will ensure not only a smooth settlement of the claims, but also a hassle-free claim process.