The trend of owning a property or a residence is increasing among the working youth in India. With the flourish in IT and other sectors, working individuals are now more competent than ever to buy their own flats, duplex or households. In a nutshell, people in India are no reluctant to invest hefty amount of money to build their own abode.
Suppose, you have spent your life’s savings to make your dream come true, a well furnished household. This is your asset, your most prized possession, even a tiny stain on its walls hurts you badly. You left no stone unturned to keep your residence not only beautiful but also safe by incorporating various safety features. And finally, you rest assured thinking your home is completely safe and secured. However, this is unfortunately not the case. You never know what might befall your dream abode so you have to be extra cautious and take steps to procure additional protection.
A comprehensive home insurance plan is the best solution to your requirement. Home insurance in India is fast gaining prominence as they keep the entire residence along with its assets for a nominal premium. God forbid, if your house is set on fire or is severely damaged due to natural calamities like earthquake, storm, floods, only a house insurance policy can come to your rescue.
Home insurance plans cannot rule these risks out but can certainly minimize your financial loss. You can now buy home insurance online as all the providers now have robust online presence. But before settling with any particular provider of home insurance in India, you should compare home insurance online so that you can grab the best deal available.
What does a Home Insurance Policy Cover?
Home insurance online plans come with a wide variety coverage. Some of the coverage are mandatory and some are optional and you have to select coverage meticulously as per your needs. Let’s take a look at all types of coverage available with house insurance policies in India.
Coverage for Structural Damages
If the structure of your house or pipes and tanks are affected by any type of natural calamity such as earthquake, lightning, you can have your expenses for repair reimbursed from the provider of your home insurance in India.
Coverage for Fire-Related Damages
One of the most common reason of house damage is fire. Your house can be set on fire by various reasons such as gas leakage, short-circuit etc and home insurance online plans cover losses due to fire-related damages.
Coverage for Home Contents
Apart from the structure, various contents of your household also comes under the coverage of home insurance policies. Some of these contents that are under the coverage of online home insurance policies include, television sets and furniture items. Your provider of home insurance in India will pay out financial compensation if these contents gets damaged by natural perils. You should keep purchase receipt of all the covered contents as it would help you at the time of a claim on your home insurance plan.
Coverage for Valuables like Jewelries
A home insurance plan also covers loss of precious belongings such as jewelries, watches and stones while they are kept in the house or being worn by the house-owners. Home insurance online plans cover loss of these valuable possessions due to natural and man-made disasters. In order to cover these valuables, you have to opt for ‘all risk’ coverage category of your home insurance online plan.
Coverage for Burglary
Most providers of home insurance in India provide coverage against damages due to burglaries. If you live in a location prone to anti-social activities, you should avail this coverage when you buy home insurance online. However, to make a claim on your home insurance policy for burglaries you need to submit police report and other necessary documents.
Coverage for Plate Glass
Glasses not only enhance the beauty of households but they are also expensive items to replace. Your house insurance plan also offers coverage against damages to all the glass fittings of your residence.
Coverage for Electronic Goods
Various electronic goods in a household like computer, TV, DVD players also fall in the ambit of a home insurance coverage. Your house insurance policy will pay out compensation in case of damage of these electronic appliances anywhere in India.
These are the regular coverage of home insurance in India. You can compare home insurance plans to check out the coverage options and go for the one with best coverage at an affordable premium.
However, you can still enhance the regular coverage by opting for several different add-on covers which are available with a house insurance plan. Let’s take a look at these home insurance add-on covers.
Earthquake is one of the biggest threat to any house-owner. Coverage of home insurance online plans can also be extended to cover earthquake. Housing estates usually opt for this type of home insurance coverage up front. If you live in a separate residence you should opt for this add-on cover when you buy home insurance online.
Personal Accident Coverage
House insurance policies also come with a personal accident coverage fir the house-owner. Unfortunate events like death, permanent and temporary disablement are covered by this type of home insurance add-on cover.
Alternative Accommodation Coverage
If your insured house is severely damaged and you are forced to live in a different house on rent, your home insurance online plan will pay out your rental expenses up to a maximum period of one year if you opt for this add-on cover of your house insurance policy.
How much does a Home Insurance Policy Cost?
The premium of home insurance plan depends on the coverage chosen. The coverage depends on your type of residence and its value. For the valuation of your household, home insurance plans takes three aspects into consideration such as cost of land, construction costs and geographical costs which means the varied cost of land and constructions in various locations. These three factors determine the value of the residence to gauge the premium of a house insurance plan. If you opt for coverage against structural damages only , the construction costs will only come into play to work your house insurance premium out.
A contractor engaged in construction business can help you determine the construction costs. The type of construction also plays a pivotal role in the home insurance premium calculation. So, you need to disclose the type of your house construction before estimating the value of your household.
After gaining information on the home insurance premium calculation, you should also gather knowledge on the Sum Insured of a house insurance policy. The Sum Insured of a home insurance online plan depends on two factors, market value or depreciated cost or reinstatement cost. Market value of the insured household means the reconstruction costs of your house after damage after deducting the depreciation costs. And the reinstatement cost is the total cost of reconstruction without the depreciation.
The premium of your home insurance online plan depends largely on the way of calculating the Sum Insured. If the Sum Insured of the house insurance plan is worked out on the basis of the reinstatement value, your premium will be higher than that of calculated on the basis of market value. It is always advisable to go for reinstatement value even if you have to pay a higher premium on your home insurance plan because at the time of claim you can get better compensation.
Tips to Buy the Best Home Insurance in India
Now that you are aware of all the crucial aspects of home insurance in India, you are ready to buy one. Some pointers will help you make an informed decision when it comes to buy home insurance online. The first and foremost thing you have to do as the owner of a residence is to avoid being underinsured.
If you mention a lower value of your household than the actual market value only to get a lower premium on your house insurance policy, you have to pay the price for it at the time of your home insurance claim. The provider of your home insurance in India might even penalize you for being underinsured by paying just the half of your chosen Sum Insured.
Although you have to shell out a bit more, but you should consider the ‘all risk’ category of coverage when you buy home insurance online. You can also consider various home insurance ad-on covers such as personal accident coverage ‘ new for old’ add on covers. Armed with this house insurance add-on cover, you can get your old damaged items replaced with new items by your provider of home insurance in India.
You should also buy home insurance online with coverage effective across the world. If you carry your camera or laptop outside India, you can still keep it covered by your home insurance policy.
How to Buy Home Insurance Online?
To buy home insurance online, you have to go through a very easy and simple procedure. First of of all, you have to pick the best provider of home insurance in India. To ensure that you have got the best house insurance policy, you should compare home insurance online.
Before making the payment online for your home insurance plan, you should read the policy documents carefully and find out hidden clauses and exclusions. You need to choose a deductible amount when you buy home insurance online. While choosing the deductible, you should strike a balance between minimizing your house insurance premium and your claim outgo.
Prior to availing home insurance in India, you should disclose the value of all precious possessions to come upon the right Sum Insured amount.
You should also reconsider your home insurance policy in every five years because the reconstruction cost of the house is most likely to be inflated in every passing year.
How to Make a Home Insurance Claim?
It is crucial to know the right steps of making a valid home insurance claims. Your house insurance policy will yield you nothing if your home insurance claim gets rejected. To make a valid claim, you need to intimate the provider of your home insurance in India within a specific period of time which varies from one home insurance company in India to another. You need to fill in and submit the home insurance online claim form mentioning the damage to your house and its contents along with supporting documents like FIR.
Home insurance claims are settled fast in the aftermath of a natural disasters because a whole lot of claim applications are being sent from the same locality which ensures the authenticity of the claim. Upon lodging the claim, your provider of home insurance in India will survey your residence and determine the payable amount.
Now that you know all aspects of home insurance in India. You shouldn’t waste time to buy home insurance online to keep your house safe and secured. Calamities don’t come with a warning and can ruin your dream abode if you are not prepared beforehand. You can compare home insurance online on GIBL,IN, the premier online insurance marketplace in India and buy the best home insurance in India to safeguard your home.
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