Many times, in life, you may need to evaluate your choices back and forth to ensure that it is the right decision. This is especially so when the decision is a long-term commitment and has an enduring effect on your life. For example, where to invest your hard-earned money, which insurance do you buy, etc. Many offers, different companies, opinions, and other factors make it difficult to choose insurance policies.
Insurance policy is a crucial part of your financial portfolio, be it life insurance or property insurance. Insurance is a contract that promised you to pay for the damage caused to the insured person or thing due to circumstances stated in the agreement. It is usually a long-term contract as it involves ten years or more. It is impossible to make major changes in the policy during the term after you sign the contract. Therefore, it is very important to do in-depth research and understand the elaborations of the policy you choose.
What is property insurance?
Property insurance protects your property against loss or damage cost caused to the structure of the property, personal possessions in the property, valuables, etc. Property insurance includes homeowner insurance, renter insurance., flood insurance, auto insurance. Like any other insurance policy, you should choose property insurance carefully. You need to know the sum assured depending on your house structure and contents, premium rate, and how much reimbursement when can claim in case of loss. Today buying property insurance online has made it easy to invest in a good plan after researching and comparing all the available options.
What does a property insurance cover?
A basic property insurance plan typically covers some standard perils such as fire or lightning, explosion, volcanic eruption, smoke, theft, windstorm, hail, aircraft or vehicle collision, vandalism, malicious mischief, riot or civil commotion. What it does not cover is damage caused by floods, earthquakes, maintenance damage, and sewer backup. To cover these, you are needed to opt for add-ons or riders depending on your requirements. You can avail them by paying some extra bucks of premiums.
While selecting property insurance in India, you must consider a few factors that will affect the loss you suffer and get covered.
- Liability coverage – Adding to the coverage of your structure and house contents, property insurance also provides cover to pay for damage caused to third party. This includes damage, loss, or injury caused to your guest at home, neighbours, or staff working at your home.
- Accidental damage – A basic property insurance policy.
- covers accidental damage to property. However, if your insurer doesn’t cover it, you must opt for it as an add-on. This will help you get cover for the loss caused by any unforeseen events like a car slamming into your home or damage caused in cleaning or maintenance.
- Valuable items – If you have extensively expensive items at home like rare artifacts, expensive jewellery, precious stones, etc. you must consider adding value to coverage or choosing a suitable add-on. This will save you from facing a huge loss in case it gets damaged or robbed.
- Away from home – This feature of the property insurance in India protects your personal possessions even when you are away from home. For example, you may take some jewellery or laptop or other expensive gadgets with you on a trip. And if you end up damaging or losing any of it, you can still claim for its cover.
- Alternative accommodation – Most of the insurers include this option in the property insurance plan. The alternative accommodation covers the cost of relocating to another place while your residence undergoes the repair/rebuilding process.
You can easily research, compare, and buy property insurance online.