Building or buying a home requires a huge financial investment for most people. It is undoubtedly the most expensive and very valuable asset for you. It is a place where you feel a sense of protection and security.
But any catastrophic devastation caused by natural calamities like earthquake, cyclone, lightning, explosion, hurricane, flood etc can shake the entire structure of your house. Also, the cost of rebuilding a home after being affected by a natural calamity can be huge which is not always easy to afford. Apart from this, your home is also prone to man-made acts like dacoity, theft and other damages due to riots, strikes and terrorism. All of these can pose a great risk to your home.
But with the advent of home insurance, you can breathe a sigh of relief. Home insurance can protect you from the financial destruction of losing a home by providing you protection against any damage or loss caused to your home and its contents. It protects you from unforeseen circumstances and various types of perils such as fire accidents, damage from disaster and theft.
This article will enhance your knowledge about home insurance, its types, its coverage, how to make a home insurance claim, documents required for that and much more. So let’s start by understanding the meaning of home insurance.
What is Home Insurance?
Home insurance is also commonly known as home owner’s insurance. It is a type of property insurance that provides coverage for loss and damage to an individual’s home and property in the home. Home insurance is a multi-modal insurance that provides property insurance as well as liability coverage.
Why do you need home insurance?
There are many reasons that make buying a home insurance policy a must.
recovering from natural and man-made disasters
A home insurance policy protects you from natural and man-made calamities. It covers your home against natural calamities, man-made hazards and vandalism, theft, robbery, strike, riots, terrorism, fire etc. Provides financial protection against loss and damage caused due to anti-social activities like , etc.
protection against liabilities
A home insurance policy protects you and your family members from legal responsibilities for home guests and other third parties. In other words, it covers personal injuries and property damage caused to outsiders while residing in your property. covers against you.
Compensation for loss or damage to your property and personal belongings
Apart from providing coverage for the structure of the property, home insurance also provides coverage for loss or damage to your valuable property and valuable personal belongings inside the house. These include furniture, luxuries and antiques, expensive and important items, jewellery, clothing , electronic equipment etc.
Coverage for temporary housing expenses
A home insurance policy also covers temporary housing expenses you incur if your insured home is rendered unlivable due to damage. Unless you renovate or renovate your existing insured home, The rent you pay for your temporary accommodation till it is back in habitable condition will be paid by the insurance company.
Help in availing home loan
A home insurance policy makes it easy to get a home loan from a bank or other financial institution. Many lenders ask you for a home insurance policy before sanctioning a home loan. In fact, for many lending institutions, it is It has become a part of their eligibility criteria to take home loan.
What are the types of home insurance?
There are generally two types of home insurance:
home structure insurance
This insurance covers all the expenses related to the repair or reconstruction of the house due to the damages covered in the policy. It only covers the structure of the property.
Contents insurance covers items inside the home such as jewellery, silverware, luxury and antique items, furniture, home appliances, clothing, etc. It provides protection against damage to your valuables due to theft, burglary, accidental breakage, fire, electrical and mechanical failure, etc.
Home Insurance Premium and Cost
The premium for a home insurance policy generally depends on the following factors:
Type of home ownership i.e. owned or rented
Value of materials and goods kept inside the house
The sum insured for the house structure is calculated by multiplying the built up area and construction cost.
Add-on covers like all-risk jewelery cover, terrorism cover, breakdown cover etc. taken along with the policy.
Past claims and places
How to make a Home Insurance Claim?
If there is loss or damage to your insured home, you can make a claim by following the steps mentioned below:
First, you must notify the insurance company of the loss or damage to your insured property through a call or by making an online request.
Next, you’ll need to take pictures of the damaged parts of your property.
Your insurance company will ask you for supporting documents to verify your claim. The insurance company may also ask you to bill for the services you have taken after the accident, so keep them on hand.
The insurance company will then appoint a surveyor to analyze and assess the theft/loss.
Once your claim is verified, the claim amount
Will be finalized and you will be informed.
You will receive the claim amount through check or direct deposit in your bank account.
Documents required for making a home insurance claim
There are some basic details and documents that insurance companies require while filing a home insurance claim: These documents differ from one insurer to another. However, the common documents you need to maintain while filing a home insurance claim are:
Claim form duly filled and signed by you
brief summary of the event
Evidence of the incident explaining the extent of damage and the nature of the accident. This includes list of lost/damaged items, copy of FIR, court summons, rent contract, repair bill, fire brigade report, ownership proof, etc.
Details of your insurance policy such as a copy of the policy, policy number, etc.
KYC documents as mentioned in your policy
Having all the required documents in place will ensure a quick and smooth claim process.
Professional Tips for Making a Home Insurance Claim
The tips mentioned below will help make your home insurance claim process faster and smoother.
It is important to read the policy document carefully to understand what is covered and what is not. Before you make a claim, you should know what is coverable.
Keep all documents in one place for safe and easy reference.
Keep two sets of documents required for the purpose of claim. You have to submit one set to the insurance company and another set can be used for your personal reference.
Verify all the details filled in the claim form before submitting it.
Home insurance is an important precautionary measure that you should definitely invest in. Buying home insurance provides protection against any possible damage or loss to your home structure and its contents. So use your foresight and be prudent.