How Can You Save Money On Home Insurance

How Can You Save Money On Home Insurance: Home insurance is a mandatory requirement put forward by money lenders in case of the purchase or construction of a new house. Now, there are multiple factors on which your insurance premium rates depend on the age of your house, its location, type of construction, etc. There are also some personal factors which come into play which could also affect your premium rates like whether or not the applicant is a smoker, the applicant�s credit history, etc.

Home insurance premiums aren�t written in stone and can go up or down based on various factors. Here are the top 10 ways which can help you save big on your home insurance premium rates.

1. Maintain a Good Credit Score

   More and more insurers are now taking into consideration an applicant�s credit history when it comes to deciding upon the insurance premium. A healthy credit score can easily help cut down your insurance premium costs while an awry credit score could harm your chances of getting an insurance policy altogether. To improve your credit score, try keeping your credit balances as low as possible, ensure timely bill payment, keep a track of your credit score and report any errors to the concerned company authorities and don�t avail credit in excess of what you do need.

2. Raise the Amount of Your Deductible

   In insurance terms, the deductible is the amount of money which the policyholder must pay for a loss before the insurance company begins to pay for the claim. So, the higher your premium amount, the lower will your insurance premium be. Now, insurance companies may sometimes have separate deductible amounts depending on the kind/nature of the damage like earthquake, hail storms, fire, etc. Insurance companies to recommend customers to keep their deductible amount high, in order to save on future premium costs.

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1. Bundle Insurance Policies

   You�re out to buy an auto insurance policy being sold by a certain company. The same company is also selling a home insurance policy, the terms of which are quite favourable and suited to your needs. In such cases, it might be a smart move to purchase both the policies from the same insurer as you are likely to get a discount on your premium. However, to ensure that this arrangement of combined pricing is lower than the cost of purchasing two policies from separate insurers.

2. Enquire About Discounts

   It often happens that insurance companies offer discounts which aren�t adequately advertised. For instance, some insurance companies offer discounts to senior citizens or retired applicants, as they are more likely to stay at home, reducing the risk of burglary. Similarly, professional associations and employers also offer group insurance policies for their employees or members, which can be availed at discounted rates.

3. The Newer The House, The Better

   Just like auto insurance, premium rates are affected by the age of the commodity, in this case, your house. Insurance companies are far more likely to offer you lower premium rates if the house in question is new. The logic working behind this is that a new house is less likely to have problems when it comes to the plumbing, heating or electrical systems. Not only that, but the structure will also be in a better shape.

Tips to Get Yourself An Effective Home Insurance Policy

 Tips to Get Yourself An Effective Home Insurance Policy: Purchasing or constructing a house, though initially quite stressful, can be one of the best investment decisions one can make. House insurance is an automatic addition which is a necessity to protect your new house from any potential risks or dangers. With a house comes house insurance. However, purchasing a home insurance policy also means that you are adding an expense to your future monthly budget by way of insurance premiums.

Compare � Comparison shopping is something that you should do before buying anything, not just insurance policies. When it comes to Home Insurance, different policies will offer different benefits. Compare different policies and their features, and choose the one that best fits your needs.

Understand your policy thoroughly � Read your policy documents without fail. You need to know every detail about your policy to avoid surprises later.

Be in touch with your insurer � Got any queries or doubts about your Home Insurance policy?Don�t stick to your assumptions, instead get in touch with your insurer and clear them.

Buy add-on covers if necessary � There are a lot of add-ons available with Home Insurance policies. You can invest in them if necessary. For example, if you live in a neighbourhood where theft is common, you can buy an additional cover for your belongings against theft and burglary.

Amplify your policy � Certain scenarios will require you to make changes to your existing insurance policy. For example, if you plan to expand your property or buy costly interior decors for your home, you need to include these in your policy accordingly.

Raise your claims on time � There is a time limit on raising claims after an event (which is covered) has occurred. If you do not file your claim within the stipulated time, then you�ll miss out on any applicable benefits. This is why we stress on reading your policy documents thoroughly!

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Raise the Amount of Your Deductible

In insurance terms, the deductible is the amount of money which the policyholder must pay for a loss before the insurance company begins to pay for the claim. So, the higher your premium amount, the lower will your insurance premium be. Now, insurance companies may sometimes have separate deductible amounts depending on the kind/nature of the damage like earthquake, hail storms, fire, etc. Insurance companies to recommend customers to keep their deductible amount high, in order to save on future premium costs.

Bundle Insurance Policies

You�re out to buy an auto insurance policy being sold by a certain company. The same company is also selling a home insurance policy, the terms of which are quite favourable and suited to your needs. In such cases, it might be a smart move to purchase both the policies from the same insurer as you are likely to get a discount on your premium. However, to ensure that this arrangement of combined pricing is lower than the cost of purchasing two policies from separate insurers.

Don�t Skim on Research

Purchasing a home insurance policy is quite a task, with the rising number of insurance providers now offering lucrative options all around. Take your time to go around and research on the various insurance providers offering home insurance policies. Go online, check for websites, user�s feedback, ratings, for different policies. Offline, you could check with people who have purchased home insurance and could give you valuable feedback, check with independent insurance agents who can provide you with policy deals from multiple insurers, contact the branch office of the insurance company itself and request for a quote. When you�ve done your research, you will get a fair idea about the range of services/covers being provided by various insurance providers, along with an idea about how much your overall insurance package is likely to cost you as well.

Now that you know the importance of a Home Insurance cover, maybe it�s time for you to get one for your home. Unfortunately, we do not offer Home Insurance as of now, but you could explore our other products.

We Should Buy Home Insurance Or Not?

We Should Buy Home Insurance Or Not?Over the past few years, there has been an increase in the number of homes being bought across the country. The property market has been pretty ripe for investments, and folks across the nation jumped at the opportunity. As an icing on the cake, most of the financial institutions offered attractive Home Loans to ease the burden of finances on home buyers too. Although there was an increase in the number of home buyers, there was hardly a handful among them who purchased Home Insurance.

We Should Buy Home Insurance Or Not?

While half of the population has no clue about Home Insurance, the ones that do know are under the impression that they�ll have to pay high premiums and will be subject to a complex documentation and claims process.

Stella D�Souza, a mid-level employee in a private firm, said, �I never knew there was a something called a Home Insurance. But, luckily, my husband knew about it. And today, we�re glad we insured our home. After all, one can never predict natural hazards, right!�

Of course, we completely agree with Stella! With the frequent climate changes and out-of-the-blue occurrences of natural calamities like the Chennai floods, cyclone Vardah, or the earthquake in North India, it has become all the more important to buy Home Insurance along with your new home. With an insurance in place, restoring damaged property from calamities won�t be a financial burden for you.

What About The Cost?

The cost attached to a Home Insurance plan depends on a number of factors. The premium you pay will depend on the sum insured. The sum insured will be dependent on the cost of construction of the property and its built-up area. The cost of construction will take into consideration the quality of construction and the materials used and the locality in which the property stands.

A comprehensive Home Insurance policy is essential to secure your home against unforeseen events, no matter the cost. You should opt for a scheme that offers adequate coverage for your home and belongings. If you need help calculating how much coverage you�ll require for your home, there are quite a few Home Insurance calculators available online.

While deducing the sum insured, remember that it is important to value all your belongings along with your property. You�ll need to get as accurate as possible with your calculations. Wondering why? If you under-insure, the insurance company will pay only your sum insured even if the property damage cost was higher. On the other hand, if you over-insure, the insurance company will pay only the property damage cost.

For instance, let�s assume that you bought a cover of Rs. 75 lakh. On an unlikely event (which is covered), your property gets damaged and the reinstatement cost is estimated to be Rs. 35 lakh. Your insurance company will pay you only Rs. 35 lakh (and not Rs. 75 lakh).

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What Is Covered And What Is Not?

Most Home Insurance plans available cover two kinds of property damages:

Damage to the structure of your property � These plans cover only damage caused to the structure of the property. If you opt for this plan, you can claim the construction cost if any damage is caused to your property by any of the unlikely events mentioned in the policy document.

Damage to contents of your property � These plans offer compensation for any damage caused to the contents of your property such as the furniture, appliances, jewellery, etc. due to any of the events mentioned in the policy document.

There are quite a lot of comprehensive policies in the market that provide coverage for both kinds of damages mentioned above. However, such policies are available only for homeowners. If you�re a tenant, you can purchase insurance cover only for your belongings.

In addition to the covers mentioned above, there are a lot of add-on covers available too. Some of the common add-on covers are rent cover, terrorism cover, and burglary/theft cover. Arent cover helps you with rent expenses when you�re staying in an alternative accommodation due to repair work. A terrorism cover caters to damages caused by structure and contents of your property due to terrorist acts. And a burglary/theft cover, as the name suggests, caters to the damages caused by structure or contents due to theft or burglary.

Now let us talk about what�s not included in Home Insurance plans. Although the policy document will contain all the exclusions, here are some of the common exclusions found in Home Insurance policies:

• Any damage caused due to your negligence or any wilful damage caused to the property and its contents will not be covered
• In case you have not disclosed details or have provided wrong details about the property and its contents, the policy will not cover the same
• Any pre-existing damages to the property or its contents will not be covered by the policy
• If there are any manufacturing defects in the contents, the policy will not cover such defects

The above-listed exclusions are some of the common ones that we have come across. However, please refer to your policy�s documents to know what�s not included in the policy.

How To Make A Claim

First and foremost, you need to inform your insurance company about the destruction caused by your property or its contents. Usually, there is a time limit within which you have to file your claim, so don�t delay.

You�ll be required to fill up a claim form. Ensure that you provide correct information and include all details on the claim form. The insurance company will initiate the claim process only after they receive your claim form. Simple, isn�t it?

Why You Should Ensure Your Home

Here are a few reasons why it makes sense to buy a Home Insurance policy:

Financial protection � A Home Insurance policy provides coverage against calamities, both natural and man-made, like fires, earthquakes, floods, vandalism, etc. Cyclone Vardah had left behind a trail of destruction in Chennai and those who didn�t ensure their homes had to spend huge amounts to repair the damages.

Protection for contents � With Home Insurance, you can protect your personal belongings and valuables against thefts and calamities. There are many covers and add-ons available to safeguard all the contents of your property including furniture, electronics, pieces of art, etc.

Temporary expenses � In the case of any calamities, you�ll have to temporarily shift to a different residence while rebuilding or renovating your property. Home Insurance will cover the rent expenses if you temporarily shift to another apartment or house.

Protect Home From Natural Calamities With Home Insurance

Protect Home From Natural Calamities With Home Insurance: A house is one of the most expensive assets one owns in a lifetime. Yet it�s often left exposed to the risks of damage without any financial security. Most of us put in our hard-earned money to buy a house and are often reluctant to stretch further to get an insurance.

You may not be able to protect your home from such damage, but you can get financial support to recover from it. A home Insurance plan can help you get through.

Home Insurance and water damage coverage

If you take a Home Insurance plan that covers water damage, it would provide protection against water damage due to any sudden or accidental cause. However, insurers deny claims for gradual damage.

Inclusions and exclusions

Home Insurance typically offers coverage for the property and the content inside for losses incurred due to natural calamities such as earthquakes, lightning, cyclone, floods, etc. Valuable content is also covered if lost due to theft.

Understanding the terms and conditions of a policy before buying it is necessary to know what�s included and what�s not. For example, water seepage through walls and roof is not covered in the floodplain.

Rain can cause various types of damages to your home. A deluge caused due to excessive rain can be tackled by a well-protected policy. One can also get a cover for the personal belongings under the flood plan. However, flood victims are required to pay a minimal amount on account of the deductibles. The details of deductibles are decided right at the time of purchase.

Home Insurance policies purchased at the time of taking Home Loan covers building structure only. They do not cover content such as household articles and electrical appliances, which can possibly get damaged too during a natural calamity. Such policies mostly cover fire and flood. In such scenarios, the best way to buy Home Insurance is to have an adequate sum insured including a cover for the content inside.

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How to make a claim

Following are the steps you need to adapt to make a claim:

• Document all the damages caused due to rain. You can either take photographs or shoot a video.
• Try and preserve all damaged items for inspection.
• Maintain a list of the items that have to be repaired by you for temporary use.
• All claim-related documents should be well preserved for future use.

Considering Home Insurance in our country is not that expensive, it is always advisable to avail one with the required add-ons so that in the event of a heavy downpour, you are shielded from an expensive repair bill.

Things To Keep In Mind Before Buy Home Insurance

Things To Keep In Mind Before Buy Home Insurance: Home Insurance is a very important risk mitigation tool for the homebuyers. With global warming on the rise, several cities are prone to damages caused due to flood, storm, landslides, etc. Home Insurance can protect the insured with financial support if the covered property suffers loss due to any of the perils listed in the insurance document. Home Insurance is of two types � Fire insurance policy (FIP) and comprehensive insurance policy (CIP). While FIP allows financial cover from damages such as fire, storm, flood etc., CIP provides two types of cover that include building the structure in first type and content of the home under the second type.

In this article, we take a look at 5 important things to keep in mind while choosing a Home Insurance policy.

How Much Home Insurance Cover Value Do You Need?

Home can have risk on its structure and on the content inside. While estimating the insurance requirement for your home structure, compare your home value with the prevailing market cost to build similar property. Underinsurance of property can expose you to financial risk. Similarly, when considering the insurance for contents in your home, take into account all the belongings and make a list of all items, estimate its prevailing value, and accordingly get the adequate value of insurance

Similarly, when considering the insurance for contents in your home, take into account all the belongings and make a list of all items, estimate its prevailing value, and accordingly get the adequate value of insurance coverage.

What Type Of Covers You Should Take Under Home Insurance?

While getting the insurance for the structure of your house, you have the option to get the insurance value as per depreciated value method or the reinstatement value method. The depreciated value may fall short of realising the total cost of the property as depreciation may reduce the cover size. On the other hand, reinstatement method considers the cost required to rebuild the property if it is damaged, so it is better to opt for the reinstatement cover over the depreciated value cover.

The depreciated value may fall short of realising the total cost of the property as depreciation may reduce the cover size. On the other hand, reinstatement method considers the cost required to rebuild the property if it is damaged, so it is better to opt for the reinstatement cover over the depreciated value cover.

Different Insurance For Different Purpose Vs Single Insurance

As you have the option to ensure the building and contents separately, you have the option to get a comprehensive insurance for both building and contents, or, a separate policy for both purposes. While getting the insurance you should read the items covered under the comprehensive policy and its cost. You may find separate insurance covers to include more items in comparison to a single cover, but at the same time it may cost you more and during the claims will be settled separately as well. A combined content and building insurance policy may cost you less and at the time of damage, the claim is settled together by the same insurer.

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While getting the insurance you should read the items covered under the comprehensive policy and its cost. You may find separate insurance covers to include more items in comparison to a single cover, but at the same time it may cost you more and during the claims will be settled separately as well. A combined content and building insurance policy may cost you less and at the time of damage, the claim is settled together by the same insurer.

You can make the choice of single combined policy or different policy depending on what are the types of item you are looking to get covered and whether you get such items insured in a single policy or not.

Covers That You May Not Need

Sometimes the Home Insurance policy may provide cover which you may not need. If you skip such extra covers, then the cost of a policy may get reduced. For example, you may not need a flood cover if the place you live in is not susceptible to floods. Similarly, depending on your requirement you may decide to skip policy which is charging extra money for covers that you do not require.

Use Online Insurance Tools To Compare

You may get attractive offers from the local insurance agent, but at the same time, you must compare a large number of policies provided by various insurers by using the online comparison tools. It�ll help you to figure out the cost of insurance, things that it would cover and accordingly you can call the local agents to check their rates.

Finally

You must declare the correct information while buying the Home Insurance policy. At the time of claim settlement, you may need to furnish the proof of belongings or its valuation. Try to keep the bills of valuable things to prove its value at the time of claim settlement.

Also, you must maintain the building in the best feasible way and look after regular repair and maintenance for proper upkeep. Poor maintenance of the building could be a reason for rejection of the claim.