6 Things You Must Know Before Opting Home/Property Insurance
What is Home/Property Insurance?
Home Insurance or Property Insurance or Homeowner’s Insurance is for covering the losses or damages to the property. It covers the interior, exterior, asset and personal damage to/in the home. Usually, the act of war or act of God (like an earthquake, flood or international war) are out of the insurance coverage. While natural disaster-prone areas have some special insurance policies.
6 Things You Must Know Before Opting Home/Property Insurance:
1) Policies that cover your expectations/needs:
There are basically 3 types of home insurance structure insurance, content insurance and both. First of all, before choosing any of the home insurance one should have to analyse needs and requirements. If there is a chance of burglary kind of issue then the insurer should also have to take care of the house’s materials. Smartly, choose the policy that better fulfills specific needs.
2) Know about Escalation Rate:
Before taking policy from any company be assured to know about their escalation terms. With the time, the rate of property increases so coverage in policy also has to increase by some certain percentage. Usually this kind of facility is provided by the companies, but consumers have to choose the policy whose coverage increment rate is in sync with the property increment percent.
Also, don’t forget to upgrade the policy if you are renovating your home with expensive build materials.
3) Ensure right coverage amount:
This step you have to be more cautious about. Sincerely, one has to analyse the construction cost of the property. It helps in determining the right coverage amount. Suppose if you need to reconstruct your home all from starting what it is going to cost today should be the coverage amount.
4) Check company’s past claim settlement ratio:
In this case, a reputed company plays a major role. Insurers should also have to check the past claim settlement ratio of the company. How many times did the company settle all its claims and what was the term and condition of the insurer? Whether the company is either settling or not the compensation. What is the process individuals have to go through while settling? Is it a hectic or easy one ? This all helps an insurer as one more credible factor while choosing home/property insurance.
5) Read terms and conditions thoroughly:
Everybody knows that reading that long written term and conditions on the paper is a boring process. But be careful if it’s a case of insurance, one should have to thoroughly go to all terms and conditions. Because nobody wants when you are in need of urgent money and a single term in policy is abiding you from that, that’s all effort wasted.
6) Act of War or Act of God:
Take care, these are two special cases that some insurance policies don’t include in themselves. If there is a condition of international war or act of god or natural disasters like tornado, flood, and earthquake, some insurance policies don’t cover these special cases, and some do.