Home Insurance
"Home insurance is a contract between the policyholder and the insurance company. Home insurance covers the expenses and damage of your home or any insured property. It is an insurance policy that incorporates different personal insurance protections, which saves your home from losses."
Home insurance is a necessity, not a luxury. It protects your home and possessions against disasters. For the fair and modest value of the property, all mortgage companies require borrowers to have an insurance policy. Without proof of transaction, companies won't make loans or finance real estate. If you don't even have your own home to get insurance policies, your homeowner will provide you with all renter insurance facilities.
How It Works?
Home insurance policy is a one-stop solution for renters and homeowners. If you are planning to construct or purchase your own home, make sure to have a home insurance policy for a peaceful and happy life. The main features of this policy are it provides coverage against natural calamities, man-made calamities, and accidental damage under crime and also covers fine arts, personal liability, and pets. Main principles of insurance on which these policy works are insurable interest, proximate cause, utmost good faith, protection, subrogation, contribution, and minimum loss.
How To Claim?
You may need evidence of cause damage caused and documents in order to claim your own home insurance policy. Documents you need mostly are police FIR, investigation reports, statements from fire brigades, and any other authorized organizations or residential societies. A medical officer's certificate may also be required on a conditional basis. Besides this, you may need court summons, repair estimates, or proof of personal contents. The insurance amount you get will depend on the insurance policy you have. the coverage your insurance policy provided depends on the cash value and the replacement value.
Actual Cash Value:
Actual cash value covers the cost of the house and the value of your possessions after deriving depreciation it means the actual price of the items not how much you paid for them.
Replacement Value:
If you want to repair or rebuild your house up to its original position, then you choose the option of replacement value because it covers the actual cash value and value of your possession without deduction for depreciation.
Benefits Of Home Insurance Policy
1. Protection Of Main Residence
The major benefit of a home insurance policy is to protect the main structure of your residence in which actually inhabit. Insurance of 80 to 90% is common but it is best to get your inhabitants insured up to 100% of its original value.
2. Coverage Of Detached Structure:
This policy is not limited to your residence but also takes into account other isolated areas of your home such as lawn, garage, fence, shed, etc. Protection of detached structures is mostly up to 10% but if you need extra protection you can customize your policy.
3. Protection Of Home's Contents:
You can choose an option to provide protection for your belongings present inside homes such as electronics, furniture, appliances, and marble. Don't forget to have a look at all your home contents before signing an agreement for a home insurance policy.
4. Protection From Natural Disasters:
Natural calamities such as floods, earthquakes, land sliding, sea storms, volcanoes eruptions can result in heavy damage to homeowners. This policy also provides monthly or yearly allowances in case of these natural disasters.
5. Reasonable Policy:
Some people think that it is an unwanted expensive policy that put a burden on their budget, but it can provide you major relief if any unwanted situation occurs. So you can choose it without any hesitation, it is a reasonable and economically inexpensive policy.
Factors Affecting Home Insurance Policy
- Replacement cost is directly related to your home insurance premiums
- Credit score and square footage affect your home insurance policy
- Renovation, betterment, home improvement project
- Location, size, age, and construction of your home
- Continuous home insurance without any claim
- Home safety features, and claim history
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