What you need to know before opting for home insurance

risk: Firstly, it is important to understand the scope of coverage of the policy. While most policies generally cover damage to the physical structure and any personal property inside it, there may be some exclusions or limitations.

For example, the policy may not cover natural calamities such as earthquakes, floods and landslides. It is important to consider the risks of such events to your property. Also, said Rahul M. Mishra, Co-Founder and Director, PolicyInsure, “Home insurance policies usually have limited liability for personal injury or damage caused to a third party on the property’s premises.”

Coverage Level: You should consider factors such as the value of the home, the cost of reconstruction and the value of other personal property, etc. if required. For example, the India Home Defense policy provides additional benefits like coverage for buildings, furniture, fixtures, fittings and house contents etc. apart from renewals.”

Deductibles: Many insurers offer comprehensive coverage without a deductible. “For example, the India Home Defense policy has no deductible and provides coverage for flood and earthquake damage, architect fees, alternative accommodation, and removal of debris up to a specified limit. This is for less than 15% of insurance claims. Nobody imposes fines,” Mishra said.

Claims Process: You should know how to file a claim, what kind of documents are required, and what is the specific time for claim settlement. You should also be aware of any limits or exclusions to coverage and any applicable deductibles. Also, while choosing an insurance company, you must check the claim settlement ratio from the IRDA website.

Additionally, Sudhish Ramteke, associate director-head of property practice at Anand Rathi Insurance Brokers, said, “You must ensure the correctness of the details. For example, property description, material description, location address, etc. must be completed. Any mismatch in these areas can create problems in case of claims.”

For the record: Maintaining records of your personal assets is important. This includes the title deed, with views of the exterior and interior of the property, and receipts for expensive items such as electronics and jewellery. These records can be helpful in the event of loss or damage, as they can provide proof of ownership and help expedite the claims process.