Insurance: Tips for buying a home insurance policy

By Vikrant Vikram Singh

The decision to buy your first home is exciting. Many people find that spending money on real estate is more beneficial in the long run than renting it out. Whether you are buying an apartment or constructing a house, home insurance is a must to protect the home and personal belongings. There are many ways to save money with insurance when buying your first home.

Buy your policy onlineIf you buy home content insurance online, your premium will be lower as there are no intermediaries in online mode and very few documents are required. Buying online can also save you a lot of time and effort.

If you agree to pay a portion of the damage in the event of a complaint, this will significantly reduce your monthly premiums. In this way, you can save on monthly premiums while being properly covered.

Comprehensive coverIt is an error to estimate the insurance amount for the past price of properties purchased. In fact, furniture, fixtures and fittings should be insured on a regular basis after taking into account the depreciation. Experts suggest guaranteeing the building structure of the property based on the total building area.

There are separate insurance policies for the structure, household items, and people in the house, but it is best to have a completely comprehensive insurance that includes all of them. The contents are insured against fire, robbery, terrorist activity, or electrical or mechanical failure and include jewellery and other valuables. In-house compensation covers emergencies, accidents, workers’ accident compensation, and the cost of alternative housing after accidental family hospitalisation. Fully comprehensive insurance usually means that the premiums are lower than if you had individual insurance for each of these insurances.

If you want to save on your home insurance premiums, refurbishing your property is essential. Consider completing the wiring to repair the damage and avoid the risk of breakdown or fire and make the roof of the house more impact resistant.

Be smart about filing a claimClaiming is an important step in recovering the damage. Also, there are many ways to make the process of billing easy and free from flaws. First step in this direction is to keep proper records of all property documents, data, and keep safely all important receipts and documents. Also, maintain an inventory of all the items in your home. You can also use the app or website to track items digitally.

When filing a claim, make sure you have this information and all other details about your home are at hand and ready to share. Insurance companies have different time frames for reporting claims. Make sure you submit within these deadlines to make sure your losses are covered.

Check your policy related rules and important updates on a regular basis. Changes to your home, and even in your neighbourhood, can increase or decrease your insurance premiums. If you expand your home, for example, if you remodel a basement or pool, you want to replenish your insurance policy so that you will not be uninsured in the event of serious damage to your property or liability. On the other hand, if the risk is mitigated, insurance premiums may go down. Adding new roofs, security alarms, fences, pool covers, etc., to your home can reduce your risk and reduce your insurance premiums.

Take help from expertsThe best way to determine your coverage needs is to consult an independent agent. Your agent will review your situation, home and location and come up with the best policy recommendations for you. The agent can also elaborate on the policies and optional coverage that it may add.

The writer is assistant professor, Amity Business School, Amity University, Madhya Pradesh