Home Insurance Policy You must have a homeowner’s insurance policy since it will cover the financial losses.
It is also possible to pay for the damages to your property and belongings in conditions that aren’t controlled by you. The advantages of an insurance policy for your home are:
- You may be eligible for financial assistance to repair or control damage in the event of an unfortunate incident.
- If a third party is responsible for damage, you may be insured without entering into a legal dispute
- It is easier to get a mortgage (home loan) for repair/reconstruction/expansion if there is property insurance
- The cost of losing the contents and belongings of your home can be covered. Things belonging to the home like appliances furniture, furniture and furniture tools, and jewellery
- The insurance coverage does not only cover the damages caused by natural disasters or catastrophes, but also for damage caused by theft, robbery, or burglary
- There are various kinds that home insurance policies specifically designed to meet specific needs.
- These policies cover Landlord’s Insurance or Tenant insurance. The landlord is able to claim insurance of the landlord if it is the case that the tenant (public liability) causes harm.
- In addition, if there’s an unintentional loss of the tenant’s payment (rent) due to various reasons. Equally, the tenant could be insured for his/her personal belongings in a flat rented to tenants.
Also Read: How To Choose Medical Insurance Policy
How To Claim Home Insurance?
To claim your insurance on your home You might require documentation and proof of loss. Documents like police FIR/investigation report and statements from fire brigades/authorized organizations/residential society.
Also, medical officer’s certification of disability or death, when required. Other than that you may require court summons, estimates for repairs or invoice/proof of possession of the items and so on.
You must pay the deductible when you make an insurance claim on your home. The amount of insurance you receive depends on the type of policy you’ve got.
It will depend on whether the policy’s coverage will be dependent on the cash value in actual dollars as well as the value of a replacement. The following explanation will help you understand:
- Actual cash value provides the current value of a house or other item. It subtracts the depreciation amount from the value of the item at the time it was brand new.
- Depreciation is the reduction in the value of an item or asset due to the condition and age of that item. The calculation of depreciation can be based on the item insured and the insurance provider.
- Imagine a television set that is insured, but it is stolen or damaged as a result of theft. The insurance amount is the amount of coverage for the price of the television that is based on the value of the TV in the period of the claim
- Replacement value insurance will pay for the actual value of the property or the item. It will give the amount of insurance needed to repair it
Let’s suppose that the damaged or missing TV set is three years old, and the coverage is based on the value of a replacement.
One can then claim the amount of insurance as the price of the television set when it was at purchase.
The insurer will pay the cost of buying or replacing a brand new set with the same specifications to replace the damaged or lost one.