Damage to property due to natural disasters is one of the most serious financial failures that can come into life. In 2018 due insurance policy to flood in Kerala, property worth several thousand crores were lost and a large number of people became homeless.
“While humans can not stop natural disasters, one can definitely protect their homes and reduce loss or damage. Insurance is the first cover in most people’s list. However, very few people in India take home insurance.
However, it is cheap, less than one percent of people buy it, “Amit Wadhwani, Managing Director, insurance policy Sai Estate Consultant Chembur Pvt Ltd
Buying a comprehensive home insurance policy will ensure that any event can happen to save a home buyer from financial loss. The policy can cover all kinds of natural and man-made disasters, including floods, earthquakes, terrorist attacks, and even robberies.
Puneet Sahni, Head Product Product Development, SBI General Insurance, points out that “A comprehensive home insurance policy covers the structure, as well as the contents of a home against unexpected situations including natural disasters, and therefore recommended for home buyers. is. To ensure that they do not face the financial crisis. “
Types of Cover Providing Home Insurance Policies
Home Insurance for Structure: This policy provides protection to home buyers for the structure of the house, which includes structures with permanent fixtures and underlying objects as well.
Home Insurance for Content: This policy provides home buyers with cover for their home contents, including furniture, jewelry, electrical and portable equipment.
In addition to basic security, an insurance policy can also provide add-on cover, such as the cost of living in rented accommodation, while your home is being repaired. If the house is rented, then the owner can take cover against the loss of the rent, if a natural disaster fails to present him.
However, these covers are for a limited period for a few months after the disaster.
Landlord insurance covers financial risk for an asset, which is caused by earthquake, flood, fire, loss due to tenant’s work and so on.
When the landlord raises such financial loss due to damage to the insured property, the insurer pays for the cost of replacement to the extent of the damage, after adjusting the deduction according to his terms and conditions.
For example, if, due to fire, the kitchen is damaged, then the insurance company will pay for the cost of repairing the kitchen. However, before you get the claim amount, the insurance company may ask you to pay the deductible amount.
Which insurance policy should you buy?
A landlord may be more concerned about the structure of the property. Therefore, he may like to buy insurance which covers the risk of damage to the structure.
On the other hand, a tenant may be more concerned about the goods and therefore, the material may prefer to buy insurance.
A comprehensive home insurance policy product can give you the benefit of the content, as well as exposure cover for the structure. However, before buying an insurance policy, the applicant should check the list of findings and exclusions for the risks covering the insurance product.
Insurance for under construction properties
Whereas a home insurance policy provides risk cover only for the assets created, what if you have purchased a property under construction? In this case, experts suggest that to cover the danger for natural resources from a natural disaster, it is the duty of the builder to obtain a project insurance policy.
Therefore, before you buy an under-construction property on a home loan, check whether the builder has taken the project insurance cover or not.
Read Also: –LEARN HOW TO HIRE YOUR PROPERTY RIGHT
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