By lun neh 
Your most valuable possession is your house. Purchasing a house and making it your home requires significant time, funds, and preparation. It may be a once-in-a-lifetime opportunity, so you want to ensure your assets are safe.
A home insurance policy is ideal for protecting your house and its belongings. However, selecting the right coverage can be overwhelming and challenging. Comparing different policies is a good place to start, and the following is a list of crucial factors to consider.
- Coverage: The location and construction of your home determine the coverage that insurers offer. The following crucial coverage is typically included in a home insurance policy:
- Protection from Liability
- Protection for the structure of your house
- Protection for your possessions
- Extra costs if a disaster prevents you from temporarily residing there
Speak with your agent and carefully read each policy document to determine what each one would shield you from.
- Additional Coverage
Insurance companies often exclude mould growth and sewage backups from their coverage, focusing mainly on natural disasters. While some insurers may offer limited coverage, structural issues like mould growth can be expensive to address. Check with your insurer about the feasibility of adding specialised coverage and consider your geographic location to anticipate potential problems, obtaining coverage in advance when possible. Claims are subject to terms and conditions set forth under the home insurance policy.
- Exclusions
Ordinary home insurance policies do not cover certain natural disasters like earthquakes and floods. In some instances, insurers offer coverage against them, but only for the building itself—not the possessions. Typically, a typical home insurance policy excludes the following things:
- Cash loss
- Damage or loss brought on by depreciation
- Damage or loss brought on by electrical equipment overheating
- Loss or harm brought on by an invasion, war, or foreign government action
Speak with your agent and carefully review the policy documents to find the precise list of exclusions for your policy.
- Comparing Costs
Before finalising your home insurance policy, obtaining and comparing multiple home insurance quotes is prudent to ensure comprehensive coverage that aligns with your specific needs and budget. Although these are typically balanced, some policies have a high deductible and a low premium, or the opposite. Examine the maximum amount of personal liability coverage and the exclusions that may lead to denied coverage. You can utilise a home insurance calculator to estimate the costs of premiums to be paid.
Insurance rates are negotiable, and bundling policies with the same provider, like home and car insurance, often leads to concessions.
Performance Of The Company
When purchasing insurance, ensure your insurer has a track record of settling claims. A company’s ability to pay claims to customers in a reasonable amount of time can be determined by its financial rating.
Check the company’s complaint data for the claim settlement ratio and avoid insurance fraud or policy misselling through agents, who may prioritise their interests over yours.
Home insurance benefits offer a crucial safety net, providing financial protection and peace of mind by covering unforeseen damages and liabilities associated with your property.
Standard T&C Apply
All savings are provided by the insurer as per the IRDAI-approved insurance plan.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.