THINGS TO KNOW ABOUT PROPERTY INSURANCE
It doesn’t make sense that one puts out entire life’s saving and work hard to pay back the home loan, but do not care enough to invest in shielding the dream home.
HOW DOES PROPERTY INSURANCE HELP?
- The policy pays for the reconstruction of the structure and loss of contents in the accident.
- Under the structure section, a policy covers only the cost to reconstruct a house, flat or building.
- Under the content insurance, it covers belongings like furniture, television, refrigerator, and jewellery with a cap.
- Some policies cover alternative accommodation costs during the phase of reconstruction.
- Insurance also provides liability coverage in case someone is injured or affected who is present in your property during any such incidents as per the policy opted.
- Home insurance can act as a financial aid if the owner passes away unexpectedly without paying out the home loans.
WHAT KIND OF INSURANCE POLICY SHOULD ONE BUY?
- Title Insurance” will protect the potential house owner against any financial loss caused due to defects in property title, disputes or even frauds, legal costs, and out of court settlement. Such a policy covers until the construction is completed.
- Individual owners of a flat, apartment, building, which is less than 30 years old can opt for property insurance. Home insurance covers losses or damages due to natural calamities or man-made activities. If you’re residential location is prone to any of the natural disasters, then ensure your policy covers such a catastrophe.
- If you live on rent as a tenant, you can opt for a policy that covers the structure and content of the property to cover your belongings.
- Co-operative housing societies can go for property insurance that covers the building structure and content, which will include all the homes in the building.
WHAT WILL BE THE PREMIUM FOR INSURANCE?
The cost of yearly premiums in home insurance would be a fraction of the amount spent on buying or rebuilding a new home. Home insurance policies are yearly in nature. Hence, it is necessary to evaluate the structural aspect and the contents before policy renewal. Furthermore, opt for the replacement value policy, instead of the actual cash value policy.