It takes ages to build your dream home that will help you create beautiful memories with your near and dear ones. But, imagine there is a natural calamity like earthquake, cyclone, or flood and your house falls down like a pack of card, else a fire might erupt that will burn down to ashes? For a moment you will be hurt emotionally but the biggest impact would be your financial losses. To protect your haven from any such loss in today’s time the best way is to obtain a suitable home insurance policy.
Natural Disasters
Experts say India loses around $10 billion every year due to various disasters. Although, we cannot control it but a home insurance policy can protect your house against natural disasters such as cyclone, earthquake, flood, etc.
Man-Made Incidences
In spite of latest security alarm, gadgets, and safety equipment man-made threats like theft, burglary, riots, terrorism, are still prevalent. An insurance policy will help you get sufficient financial cover during such man-made incidences.
Valuable Items
When you built the house of your choice there are many things that you invest into costly furniture, interior designs, chandeliers, domestic appliances, audio/visual appliances, etc. A natural incidence will definitely make a huge loss or damage for such valuable property. Thus, a policy in place will help you cope up the situation.
Relocation
Many times complete house damage such as a disaster earthquake or storm forces you to relocate yourself to different city or state and make a new beginning. Definitely, there will be a critical financial crunch to start a new life. At this point of time, you will not have sufficient finance to rebuild your dream home. It will be your insurance policy that will help you bridge up the finance for your house and its content.
While considering the value of your house insurance cover, you should remember that it’s not determined by the market value but gets decided on the basis of how much it would cost you to reconstruct the house if it’s damaged. The sum insured is calculated by multiplying the build-up area of your home with the construction rate per SQ. feet. The value can be revised appropriately if expensive material like marble, granite flooring has been used in the construction part. In case your house has lawn surrounded by a perimeter wall, the construction rate will be revised include the cost of construction of the wall in the home structure sum insured.
The content of your home – furniture, durables, costs gadgets, jewelry, etc. is valued at market value basis, which is the current market value of similar items after depreciation.
The premiums of house insurance policy fall in a wide range depending on factors like size of the home, locality, age of the building, geographical location, construction type, jewelry and other valuable possession in your home. You should take a suitable insurance policy based on your risk appetite and income source.
In case you need to make claims, first, you should inform the home insurance company about this. Either you submit a written claim documents or fill up an online application form to the insurance company within the stipulated time. Claim document should contain a detailed account of the loss/damage of valuable, reports of natural disasters like survey reports, FIR’s, etc. Once the claim department examines the issues and finds it appropriate for the claim a letter will be sent to the insured stating the approved amount of settlement along with the discharge voucher.
You can talk to customer service department if you’re anywhere stuck with the claim procedure. Do enter the appropriate details for easy evaluation of claim with correct contact details. Take your time, and calmly fill the claim form. Ensure that you avoid silly error as it will lead to the delay in your house insurance claim process.