3 reasons why people don’t buy homeowners insurance
Buying your own home is also a dream of many people. Our own home is the most valuable asset for everyone. Property in which life-long capital is invested. Or future income is arranged through a home loan. It is therefore natural that such an important asset is protected from various types of risks.
Having insurance of the house not only protects from its material losses and liabilities but also helps in fulfilling the financial liability according to the insurance policy.
Since a house is one of our most prized possessions, one must always ensure that they insure their home. Homeowners insurance provides financial protection against disasters and natural disasters. It is a policy that combines various insurance covers, such as its contents (theft), loss of its use, liability against accidents/loss at home, etc. Homeowners insurance policies cover losses due to both natural and man-made disasters.
Homeowners insurance is an agreement between a homeowners and an insurance company. The insured promises to make a fixed payment premium to cover their assets against unexpected losses (if any). If the property is prone to any damage due to man-made or natural disasters, the insurance company concerned helps cover those losses.
Homeowners insurance is available in the market according to the budget and requirements of each person. You can take the Standard Fire and Special Perils Policy. It compensates for damage or damage to the building due to fire, lightning, explosion, airplane fall, riot or strike, drowning in a flood, landslides, etc.
Types of homeowners insurance:
There are two types of homeowners insurance policies available in the market, i.e., a basic building policy and a comprehensive policy (also called a homeowners package policy). Let us understand what is involved in each type.
A basic building plan
This policy provides cover for home/building against loss or damage from man-made or natural disasters, such as fire, lightning, storm, flood, strike, landslide, cyclone, aircraft damage, riot, etc.
A comprehensive policy
This policy provides cover for the home/building structure and its contents. Structure insurance covers loss/damage against the structure of a home caused by natural or man-made disasters, such as earthquake, fire, flood, air accident damage, explosion, etc. insurance damages caused by theft, etc. / Covers losses, this may include valuable assets such as jewelry, paintings, important documents, etc.
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This is how the homeowners policy premium is decided:
The underwriter decides the quantity of insurance cowl and premium supported the property’s construction quality and settled space (per sq. foot). Property size, style of construction, geographical location, the product within the property, etc. are necessary when deciding the premium of home insurance. The insurance company charges higher premiums from policyholders in areas affected by floods or earthquakes.
By paying an extra premium, you can also get protection against earthquake or terrorism damage. For a house of fifteen lakh rupees, to get year-long earthquake protection, an insurance premium of 500 rupees has to be paid, including service tax. By opting for the long-term security of up to 20 years, you can get a 50 percent discount on the premium. Package policy options are available for even more overall security. By opting for the long-term security of up to 20 years, you can get a 50 percent discount on the premium.
Package policy options are available for even more overall security. In addition to the above fire insurance policy, according to the individual needs of each customer, there is protection against various losses. Under the package policy, protection against theft of furniture, utensils, and personal household items can also be achieved. All Risk Covers protect against theft of jewelry or baggage at home or anywhere in India.
Apart from this, there is also cover for damage to electrical goods like air conditioners, washing machines, computers, televisions and breakdown of precious glass items. In case of accidental death or permanent disability of the landlord, dependent spouse, and children, the package policy provides protection.
Advantages of homeowners insurance:
- Property protected from any loss/damage
- Comprehensive coverage of both the structure and contents of your home.
- Financial back-up against any unforeseen circumstances.
- You can always be stress-free as your home is safe and protected.
What does not cover in-home insurance?
Home insurance isn’t covered under war insurance, intentional sabotage, land shifting around the property, loss of property document, loss of antiquities, etc. Even in cases like civil war, nuclear weapons, loss of domestic help, the underwriter of the insurance company does not compensate.
3 reasons why people don’t buy homeowners insurance:
- Homeowners insurance charge a high monthly premium.
- Most homeowners insurance does not cover floods or natural disasters.
- In the policy paper of homeowners insurance, important things needed are often written in small letters so that people may ignore that point.
Follow these methods for less premium:
A policy should be taken for a long time to pay a lower premium. This gives a discount on premium and there is no problem with renewing it. There is a discount of up to 50% in premiums for taking insurance for several years. For lower premium payment, you can get information about the policy online.
Homeowners claim settlement:
A clear understanding of the clauses mentioned in the claim process must be obtained. At the time of claim, the insurer thoroughly inspects the damage or loss that has occurred. Therefore, everyone should have all the necessary documents and evidence.
The name of the policy registered in the company should be signed by it. Please insist on filling the proposal form yourself. Because any wrong information can cause problems at the time of claim. The cost of the land should not be added to it while estimating the cost of the building. Because even if the building is damaged, the price of the land does not come down. Therefore only an evaluation of the structure of the building is necessary. The landlord can ensure the structure of the house and all the things in it while ensuring the house of his residence.
Take care in the choice of the homeowners company:
Before taking homeowners insurance from any insurance company, be sure to check the claim settlement ratio status. With this, you will get information about the company’s policy and will not face any problem in taking the claim. Never decide to take a policy based on a low premium. This will deprive you of many advantages.