Home insurance: Things You Need to Know before Buying One

Home insurance majheghar

When we build or buy our dream home, we want to take every possible measure to protect it.  In most cases, we don’t mind spending money on buying the latest technologically advanced locks, security doors, and even CCTV. However, we often neglect to take the essential protection for the house. Buying a home insurance policy is the last thing in our minds. At times we think it is an unnecessary investment and is now a waste of money.

The reality is you couldn’t be further from the truth. Home insurances help you to safeguard your house. Many unknown adversities can result in significant financial loss for the house. Home insurance helps protect your house and will take care of you financially in case of such a loss.

So, whether you are buying a real estate property in Pune or anywhere else in India, you should get an insurance policy for your home. But before buying the policy, there are a few things you need to know.

1. Know Your Needs

One-size-fits-all is not the right policy when you buy home insurance. For example, an insurance policy for 2 BHK flats in Pune will be different from the policy bought for 1 BHK flat in the same area or society. Therefore, when buying the policy, consider your needs and then choose the insurance coverage.

2. Knowing the Benefits

When you are buying a property from top builders in Pune, you have to make sure the insurance policy offers you the maximum benefits. Mainly it should give you the coverage of situations outside your control. Also, ensure the policy covers the other components of the house too. The best coverage should be the one that offers the cost of rebuilding the house in case of damage.

3. Premium or Claim Settlement Ration

One mistake often made when buying home insurance is looking for a minimum premium amount. While it is good to go for insurances with a lesser premium amount, check the insurance company’s claim settlement ratio. Your purchase decision for the policy should be dictated by the claim settlement ratio and not the cheap premium amount.

4. Know Your Deductible

Decide whether you want to pay more during the insurance claim with less premium or vice versa. When you have a higher deductible, you have to shell more money from the pocket when you claim the insurance money. However, once you give the deductible, the insurance company will then pay the rest of the insurance amount. So, you have to decide whether you want to pay a higher premium and less deductible or otherwise. You have to weigh the pros and cons of both and make the decision when purchasing the policy.

5. What Happens When You Sell The Home?

When purchasing a home insurance policy, discuss with the insurer the conditions when you sell the home. Typically the policy will get canceled, but it is advisable to know the finer points.

Final Words

If you are buying a real estate property in Pune, add the price of purchasing a home insurance policy. It will save you a lot of money in the long run in case of an unwanted situation that damages your house.

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