Things To Consider When You Are Reviewing Homeowner’s Insurance

Homeowner’s insurance is an insurance policy covering the structure of your house as well as the contents of your home. With the real estate boom at its prime in India, Home insurance India has evolved as one of the most enterprising sector in the real estate scenario in India. Home insurance is important as it not only provides you with financial protection against any damage your property might incur but also protects the home owner in the event that their home is damaged or if a person becomes injured. There are a number of factors you should consider when purchasing any product or service.

Know your Home Insurance

Selecting your home insurance can be one of the most important things to ensure your financial independence in the future. Choosing what you need and how much can be confusing. Home insurance or homeowner’s may either cover only physical structure of your home or only the contents of your house. Many people do not carry the right homeowner’s insurance or the correct coverage amount.  When you shop around for the ideal policy, look for a company or agent with whom you can freely discuss your needs. The right representative will help you locate and maintain appropriate insurance. Therefore, before you plan to choose a home insurance, know your insurance and its coverage. Following are some important types of Insurance available for Home or Homeowners.

• Home Insurance for Building: Building Insurance covers the physical structure of your home in case of a disaster, such as an earthquake or hurricane. If you are carrying a mortgage, your lender might insist on this type of coverage so that if you are unable to continue to pay your mortgage, they can still recover the value of your home after the disaster.

• Home Insurance for Content: Content insurance is the insurance policy that covers all movable goods and personal possessions within your home against loss or damage. Usually the contents insurance policy comes along with the home insurance policy though at times it may be sold separately. This insurance is great for tenant, landlord and property owners.

• Guaranteed or Extended Replacement Cost: This protects you from sudden increases in construction costs due to a shortage of building materials after a massive disaster or other unexpected situations. Guaranteed or Extended Replacement Cost offers the highest level of coverage. To ensure you are protected against inflation, you should check to see if your home insurance policy includes extended replacement cost coverage.

• Home Insurance for Title: According to insurance officials and real estate experts, six out of every 10 court cases filed or waiting to be resolved in India relate to property dispute or dispute on property title. The title insurance companies assure that if they miss any information that may result in financial loss, they will undertake the same. Therefore, Title Insurance Policy protects you against loss in the event of a property ownership dispute or defect of Title ownership like defective titles, forgery, frauds in realty transactions.

• Home Insurance for Home Loan: This insurance is not for your home content or building structure but for your home loan. Home loan insurance ensures sum of money towards repayment of your loan in the event of your death, disability or loss of job resulting in loss of income. This ensures that your family or dependents do not have to worry about the loan repayment and your home will be secure.

• Home Insurance for Loss of use: Loss of Use coverage is vital if your home is left damaged so badly that you can no longer live in it. In the event of a disaster that leaves you with no home, this policy allot you temporary home or a specific amount of money to cover bills for hotel stays, meals at restaurants, etc.

The structure of your house, your belongings, your liability to others and your living expenses are some of important things to consider when planning a homeowner’s insurance. When it comes to replacing the home itself, look for extended or guaranteed-replacement-value coverage. Make sure that your apartment owners association has a policy that covers the common areas, and get a copy. The home insurance policy is important for the homeowner as it ultimately gives the home owner a sense of security to protect his family and property against calamities