Your home is your invaluable possession which is built brick by brick with your hard-earned money and filled with your moments of joy. The coziness of your home is what welcomes you after a hard day at work. So, it is very essential that you take steps to protect your home from all types of perils, both natural and manmade. You can take protection for your home through home insurance plans. There are a number of insurance providers offering home insurance and you can choose the best home insurance cover for your home.
The Need for Homeowners’ Insurance
If you own a home, you need to have a Home Insurance. Home Insurance plans are designed to indemnify you against any financial liability arising due to loss or destruction of your home and possessions. To put in simple terms, if there is any damage to your home or your possessions and you have been prudent to buy Home Insurance, the insurance company will make good the loss.
Home insurance does more than protecting your home and possessions. It cushions you against third party liabilities as well. Say, you’re conducting some repairs on your home exterior and a cement slab falls on your neighbour’s wall, damaging it. Your home insurance covers you for the damages suffered by the neighbour.
What does Home Insurance cover?
With a home insurance cover in place, you enjoy financial protection against losses caused due to thefts, accidents, and disasters. A standard home insurance policy offers a four-fold coverage.
- Home Structure Coverage
A home insurance policy protects your home against any damage from fire, lightning, cyclones, thefts, and acts of riots. If you live in a place which is prone to floods or earthquakes, then you need to take additional cover. The cover also extends to garage and temporary sheds as well.
- Cover for Personal Belongings
In the course of furnishing your home, you will have bought furniture, electrical, and electronic gadgets, kitchen appliances, paintings, decorative pieces, and many more. If any of these is damaged, due to fire or theft, a Home Insurance policy covers you to the extent of the value of your personal possessions. The insurance payout will help you to refurbish your home.
- Third Party Liability
Home insurance covers you from any third party liability as well. In case, a third party suffers some damage inside your home or any damage is caused to a third party’s property, the insurance company will pay for the damages as well as any medical expenses incurred by the third party due to any injury.
- Additional Living Expenses Cover
In case of extensive damage to your home, you’ll need to live elsewhere till the time your home is repaired. In such cases, a home insurance policy covers the additional living expenses incurred on your lodging and boarding. Suppose a part of your home is rented out, the cover also extends to the loss of rentals.
The best home insurance policy offers you adequate protection against all perils. So make sure that you take a policy that covers all your possessions along with a correct valuation.
Applying for a Home Insurance Claim
You’ve taken a home insurance cover. Your home has suffered damage. How do you initiate the claim process?
- Evaluate the damage. It’s best to have at least an estimate, if there is no severe damage.
- In the event of a theft/burglary, file a police complaint and also inform your insurance provider.
- Take pictures of all the damaged articles. Keep them, as they are needed to prove the claim.
- Make an estimate of all costs. This includes the material and labour cost of repairing or buying the damaged articles. Estimate additional living expenses as well.
- Contact your home insurance provider and initiate the claim process well within the stipulated time. You need to stick to the time limit, else your claim may be rejected.
- Fill in the claim form correctly and make sure that you include all the damage suffered.
- Safekeep all bills and receipts of purchases/repairs as these need to be furnished as supporting documents, while making the claim.
After you’ve submitted the claim form, a surveyor inspects the damage and makes his report. After this, the settlement process begins. Take your pick from the good number of home insurance providers. Each offers diverse plans to suit the needs of every homeowner. When you select the policy, ensure that it offers maximum coverage and protects your financial interests.