Home is where the heart is. Buying a house is like a dream come true. Apart from investing in the property and paying for its regular maintenance, what else can you do to maintain this precious part of your life? Your home is a prized possession, and like all other assets, it also deserves the protection of an insurance cover.
Responding to the multifaceted needs of homeowners like you, insurers offer a wide variety of home insurance solutions. From protecting your home against losses – both man-made and natural – to covering your valuable contents, they offer a broad coverage.
Before you decide to purchase the much-needed insurance for your home, it’s essential to know these things:
A home insurance contract is geared to protect the structure of your house and its contents. The policy offers coverage against “Acts of God” like cyclones, flood, earthquakes etc. and also against criminal activities like theft and burglary.
However, if you are living in rented accommodation, you can avail insurance for the valuables stored inside the house.
Cost of insurance
Today, insurers offer flexible online calculators to estimate the premium for your home insurance plan. They are equipped with various advanced features and can be scaled according to your needs. You can easily calculate the premium payable for your desired sum insured by entering necessary information like:
- Policy type
- Built-up area
- Cost of construction
In case you are living in a rented house, you can still use this tool. You will be required to enter the estimated value of the possessions in your home.
Modern insurers have designed a hassle-free process to renew your home insurance online. They also allow you the flexibility of choosing between various renewal tenors. You can opt for a single or a multi-year plan, as per your requirement.
A multi-year plan, with reduced yearly premium, offers economy of scale and proves to be profitable in the long run. Moreover, you may be entitled to various discounts while buying multi-year property insurance packages.
In case of an unfortunate incident, the insurer will conduct a thorough enquiry. All documentation related to the property and the possessions should be updated and preserved.
For example, in case of a burglary, original receipts of the items stolen or damaged needs to be submitted for inspection. A copy of the FIR, police report also needs to be submitted along with the duly filled claims form.
You should observe complete transparency while making various declarations. Else, the insurer might be at liberty to reject your claim for suppression of facts. Applications may also get rejected in case of poorly maintained or unauthorised constructions.
Riders add to the coverage of your existing home protection plan, with the payment of additional premium. You can choose between a wide variety of riders available in the market to widen the scope of your coverage.
For instance, attaching a ‘Living Expense’ rider to your policy will cover the rent of your temporary housing, in case your own house is rendered unfit for living.
Mind the exclusions
While home insurance plans protect your nest from a wide variety of threats, it is crucial to know the situations which are beyond the policy protection. It may not cover:
- Damages resulting from sabotage
- Degradation due to usage
- Loss to unoccupied property
- Cash, collectables and antiques
- Damages arising from war
Bajaj Finserv has on offer a range of pocket-friendly insurance solutions – known as Pocket Insurance – with which you can enhance the coverage provided by your basic insurance policy. For instance, you can opt for a Home Protection Plan to prevent the financial losses in case of a home burglary while you’re away. With a coverage of up to Rs. 5 lakh at just Rs. 199 per annum, it’s a valuable add-on cover to supplement your home insurance policy.