Source – wikimedia
Saying that a comprehensive home insurance policy is important is just a mediocre understatement. With the increasing awareness towards the benefits and level of security provided by a home insurance cover, people are increasing opting to insure their homes. And this is rightfully so! More often not, a house is one of our biggest investments and it makes sense to secure it with a robust insurance policy to safeguard it against a number of untoward incidents.
Whether you are buying a homeowner’s insurance for the first time or need to renew your existing policy, there are a certain number of things that you need to think them through beforehand. This is because just buying a home insurance cover isn’t enough. You need to make sure that the coverage is sufficient so that it does not fall short during a claim. In order to make sure you don’t find yourself in this situation, let us understand some pointers for buying a right homeowner’s insurance cover.
· Building and Rebuilding cost
To begin with, in addition to the extent of coverage, it is also important to evaluate the nature of the coverage. Home insurance can be broadly classified into two types: Content-based and Structure-based. When you calculate the cost you had incurred when building your house along with an estimate of rebuilding, you will be able to determine the right structural homeowner’s insurance cover.
· Contents of your home
Before signing the dotted line, evaluate the sum insured of your policy. Simply put, sum insured is the amount at which the claim settlement amount is capped. In order to finalise the right sum insured amount for your home policy, calculate the total worth of the valuables and other home contents. List them systematically with their associated value and convey it to your home insurance provider accordingly.
· Accidental damage
Depending on the location of your house, you should determine whether you need coverage against structural damage to your house due to an accident. In such a case you would need a structure based home insurance policy to avail coverage against perils of such nature.
· Valuable Items
This is one of the most crucial aspects of a house insurance policy. There may be a number of valuables inside your house such as jewellery, high-end electronic items, antique pieces and so on. You need to make sure such items are covered through content-based home cover as damage or theft of these items can set you back by a hefty sum. Additionally, it makes sense to check whether the valuables are covered away from home. This is helpful when it comes to jewellery since they are prone to theft and loss while you are wearing them outside.
· Away from home cover
Like mentioned above, an away from home cover is essential if you wear a lot of expensive jewellery. Such coverage can also be extended to other items such as phones, laptops, and watches. This coverage varies across the industry and thus needs to be checked before buying. Thus, make sure you go through the policy wording prudently so that you are aware of the exclusions and avoid any undesirable surprises.