Protect Your Home with Property Insurance Insurance

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Property Insurance
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Protect Your Home with Property Insurance
Insurance For most of us, owning a home is a
matter of great pride. And while we often put our
lifes savings into buying that home, we rarely
realize that our home needs protection in the
form of insurance too. However, since it is an
important cover for everybody to have, here are
some important details for you to know about
Property Insurance.
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Importance of Property Insurance Your home is
perhaps, the most valued possession in your life.
It is, therefore, essential to take all
precautions to protect this valuable asset.
Despite the best security and fire protection
systems installed by you, thefts can take place,
and fires can still cause irreparable losses. But
there are other risks as well such as natural
calamities, and breakdown of domestic appliances
due to voltage fluctuations. Insurance can play a
vital role to reduce such financial losses.
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The householders package is a single policy that
covers all major risks associated with home and
its contents like jewelry, electronic items, TV,
refrigerator, fragile items like plates, glass,
along with the loss of baggage, personal accident
and public liability against losses arising out
of fire, burglary, and theft. All policies cover
calamities, such as earthquakes, by default.
However, a cover against tragedy, such as
terrorism, needs to be opted for additionally.
There are also pre-underwritten options of
coverage and premium to choose from Property
Insurance plans offered by insurers like Bajaj
Allianz.
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Challenges Involved in Property Insurance Most
people pay little attention to Property
Insurance. And, while you choose the best
accessories for your home, securing it should be
of prime importance too. These days, banks offer
Property Insurance as a bundled product along
with your home loan. While this is a beneficial
feature, one should understand what the policy
covers and what it doesnt. This is in addition
to details, such as cost and what to do in case
of a loss.
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Besides that, applying for a Property Insurance
could be an extensive process involving a lot of
details and paperwork. This, however, is slowly
changing today with insurers offering simplified
plans with convenient packages to choose from and
fewer details to be provided. This has started
attracting customers towards taking Property
Insurance.
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Determining Property Insurance A crucial aspect
of your Property Insurance would be to assess the
sum insured. While you spend thousands of rupees
on accessories to enhance the aesthetic value of
your home, you would be surprised to learn that
the premium costs could be as low as Rs. 5 per
day, in comparison to the total value of the
property. It is, therefore, highly recommended
that you buy this product after understanding all
the aspects involved.
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Some thumb rules to assess your Property
Insurance are as below The sum insured and
Property Insurance premium depends on its current
market value or cost of reinstating the same in
case of a calamity. Hence, evaluation of the
house is an important issue. It is common for
home loan providers to insist on insurance for
the loan amount, which is not right. What needs
to be accounted for is the cost of construction
only. This excludes land value, but includes the
built-up or carpet area, apart from construction
quality.
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While deciding the sum insured, the area and
location of the house are also considered. This
is because sum insured is decided on the basis of
reconstruction of the property which would differ
from location to location. For instance, the cost
of construction will be higher in metro city than
in a small town. For Property Insurance of items
such as electronics or jewelry, the declaration
has to be made on actual basis, i.e. itemized. It
is always better to prepare a list of such items
to be insured. A valuation certificate of gold
and other jewelry can some handy.
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Always remember to insure contents for their
present replacement value (new) as insurers
reimburse without depreciation in case of
repair/partial claims. During the year, if you or
your family purchases new assets such as
electronic appliances or jewelry you should
inform your insurer, as these items can also be
covered.
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