Home Insurance Factors That Policyholders Should Be Aware Of

10 Factors That Affect Your Home Insurance Premiums | PROLINK

Home insurance is not required in India, unlike car insurance. A lot of money is spent on purchasing a home, so it must be adequately protected. It is always advised to have home insurance because a home is a movable asset that increases in value.

What Exactly Does Home Insurance Cover?

Home insurance protects your assets and may pay out in the event of theft, fire, or other catastrophe. A comprehensive home insurance policy may include one or more extra features along with the primary home insurance coverage. This may include protection for the building’s structure, losses, and contents.

Let’s Examine The Various Types Of Home Insurance Offered In India:

  • Structure Insurance

Losses brought on by structural damage may be covered by structure insurance. They comprise terrorist attacks, additional artificial catastrophes, and natural catastrophes like floods and earthquakes. Claims are subject to terms and conditions set forth under the home insurance policy. *

  • Content Insurance

As the name implies, content insurance may cover losses brought on by damage to a home’s contents. They include things like furniture, gear, jewellery, etc. The market price determines these items’ values at the time of the loss. Claims are subject to terms and conditions set forth under the home insurance policy. *

Essential Factors For Home Insurance That You Should Take Into Account:

  • Types Of Policies

To protect their assets, homeowners can choose to purchase structure insurance. If you own and live in a home, choose comprehensive insurance that covers the contents. Since it is reasonable to assume that the owner has structure insurance, tenants may choose to purchase content insurance.

  • Sum Insured

The sum insured for a structure insurance policy is needed to rebuild the house. This is not based on the house’s market value. Reconstruction value or reinstatement value are two names for this amount. The sum insured for content insurance is the item’s value less the current-day depreciation rate.

  • Home Insurance Premium

We must take into account the following when determining home insurance premium:

  • Populated area
  • Cost of reconstruction per square foot
  • Value of the interior furnishings after depreciation

The sum insured equals the built-up area multiplied by the construction cost per square foot plus the value of the contents after depreciation.

Two additional factors that affect the premium are the layout of the home and the materials used in its construction (using pricey materials like marble flooring, for example, raises the premium even more) and the property’s location. Homes in areas vulnerable to earthquakes and tsunamis, high crime areas, and recurrent flooding, for instance, may also be subject to a high premium.

  • Policy Renewal

Keep an eye on when your home insurance policy expires. Renewing your policy before its end date is advisable to ensure maximum protection because disasters can happen anytime. You can use a home insurance calculator to check on the amount of premiums during renewal.

Home insurance is a vital component of homeownership, providing protection and peace of mind against unexpected events that could threaten your property and belongings. Policyholders should be well-informed about the key factors that impact their coverage, including the type of policy, coverage limits, deductibles, endorsements, and the importance of a detailed home inventory.

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.