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

Home Loan Protection Plan to Protect Your Home Loan

With the upsurge of the real estate sector and the purchase of properties in India, seeking a home loan has become a clichéd aspect. Your home loan is associated with of one of the most imperative assets in your life, i.e. your home. You might have insured most of your assets like your property, automobiles, gadgetsand others, but do you think of insuring your home loan? Taking a home loan is a great concern as you will have to think about your family in the case of untoward incidents.How will they repay the huge amount in your absence which you have taken in the form of a home loan? Will they be capable and accomplish to repay the entire amount?  These are a few things which any loan seeker should think.

Various banks and financial institutions which offer you the complimentary service of home loan insurance along with the home loan you seek. Since the housing finance is rising on a peak, home loan insurance has gained impetus all over. Thus, you will be provided with a cover stating that the responsibility of your loan repayment is on your insurance company in case of permanent disability, critical illness or death. In order to insure your home loan you have to pay a part of amount as the insurance cover policy to secure your home loan. Doing this will save your family in times of peril in your absence.

Getting a home loan protection plan (HLPP) ensures your home loan burden will not be transferred to your family or dependants and they don’t worry that your bank or financial institute takes back the home. Doing this will make it easier for family to possess the property even after the death of the property owner.

After seeking a loan you will have an option of repaying the insurance premium in a lump sum amount in just a single EMI. Meanwhile the bank or the financial institution pays the premium amount to the insurer and later gathers it from the loan seeker along with his monthly instalments.

The benefits of seeking a HLPP are;

• The responsibility of repaying the loan amount is only on you and not on your family.
• In case of any critical illness, permanent disability or death of borrower, the family can still stay under the roof of the house for which home loan is outstanding.
• You can club all the insurance cover charges and pay it at a time along with your monthly instalments.
• Acquiring a home loan will also help you in times of financial crises by keeping your home intact with you and adds an additional security through a loan cosigner. Instances where you lose your job or a financial crunch will not affect your home loan insurance.
• Make sure that you save and take wise financial decision to cover your loan payment. This in turn will make your family secure and will not have a significant impact on them. Home loan insurance will also create a secure feeling amongst your family and saves them from the fear of being driven out of the house.

• You and your family members can seek financial help through the coverage of your home loan in times of sickness or any ailments where there is less income. In case the main bread winner of the family is sick or is unable to work, he/she can benefits from the home loan insurance.
• There are also options wherein you can take the premiums which you have paid for the home loan insurance during the times of tax payment. This will help you pay your tax as well as secure your home loan.

There are an array of home loan insurance policies in the financial market which are provided by companies likeLIC Mortgage Redemption, Aviva Life Shield Platinum, SBI Life Smart Shield, ICICI Pru Home Assure and others. These companies have declining term assurance policies to cover the home loan repayment.

• There are options that you can either opt for a single-premium home loan insurance cover or the one time premium. The payment of the premium depends on the amount of loan, age, health condition and the policy tenure of the loan seeker. Factors like a higher loan amount or a higher age of the loan seeker will result in a higher premium and a flawless medical health report will help the loan seeker to get insurance with a lower premium.

Is your home prepared to face natural disaster?

Natural disasters can happen at any time and at any place. Even though man has made ample discoveries to keep him updated on the incoming natural disaster, sometimes natural disasters can strike without a notice. There is no real escape from nature’s fury but by preparing well for an emergency situation, one can minimize the damage and limit the loss of life and the property.

Here are some tips to check how ready your home is when it comes to preparing for a natural disaster.

Have an Emergency Kit: Having an emergency kit in your home is one of the best ways to prepare yourself from any untoward natural disaster. Various agencies including Red Cross and FEMA issue advisories as to what should constitute in the emergency kit according to the season and threat perception. As a basic rule the emergency kit must include all day to day necessities including food, ration, water supply and medication for at least a two week period. Other important things that must be a part of all emergency kits include flashlights, first aid kit, general purpose and specific medicines. Special care must be taken if you have an elderly or a person with some specific disability living in your home. Also one important thing to keep in mind while preparing an emergency kit is to allow for needs for your pets.

Keep a Plan Ready: Having an emergency plan prepared which is known to all family members can make a difference between life and death. One tip is to prepare a couple of evacuation plans considering the threat perception in your area or region. One plan should always cater to disasters like earthquakes, fires and floods. Plan a meeting point outside your house in case of an emergency situation. Rather than fending for other family members, the plan helps in securing that each family member is aware of the best way to reach safe shores. You can also have an emergency evacuation plan away from your area of region especially if you live near a river or beach. In case of a flood or a tsunami for example it would mean the family members know where to go to and wait for the other members.

Be Informed: Being aware of the potential natural disaster is one of the best ways to avoid the nature’s fury. Depending on the region and country of your residence some natural disasters are more likely to have an impact compared to others. Keeping yourself educated with news and weather updates is likely to make a difference in terms of getting prepared for the incoming natural disaster. Another important aspect is to keep yourself and your family members educated about each and every natural disaster. During the Tsunami that stuck in 2004, a lot of people especially tourists were unaware of the upcoming Tsunami. If they would have known that this was more serious than simply a high tide situation, a number of lives could have been saved.

Make Disaster Specific Preparation: Considering which natural disaster is more prone for your region, make emergency plans disaster specific. If you live in an area which is more prone to earthquakes, make sure that you have bolted everything to avoid any damage. Evacuation plans for earthquakes can be as simple as standing in a corner to taking cover under a table to avoid any serious threat from the falling debris. On the other hand if your region is more prone to hurricanes, it is essential to consider a shutter system that can withstand high velocity winds to avoid any damage.

Store Documents Carefully: Storing all important documents like passports, insurance policies and other financial documents that you may need in a safe store is preferred. The idea is to have easy access to all such important documents in case you need to evacuate the house. Rather than hunting for your documents in the emergency situation, it is important to keep everything stored in one place.

10 Safety tips for senior citizen living alone

Man is essentially a social animal and living alone is not an ideal case scenario. Sadly in today’s world there are not many ideal case scenarios and elderly people seldom need to live all alone. Here are top ten safety tips and recommendations that can be useful for the elderly and senior citizens living all alone in their house.

Avoid Cluttered Furniture: One of the best ways to enhance the personal safety of a senior citizen is to have a de cluttered house. All pieces of extra and unwanted furniture must be placed in the store room away from the living room and bedroom areas. Cluttered furniture can easily cause the elderly to trip and take a fall which may lead to a serious medical condition.

Don’t Use Rugs: Rugs are another trouble area when it comes to elderly walking with a support stick. The support stick can easily entangle in the rugs and can cause a serious fall. All rugs socially throw rugs must be stacked away to help the elderly walk without any failure of judgment that may lead to an eventual fall which might hurt them physically.

Brighten Up: One of the most important security mechanisms is to upgrade the lighting of the house. Any low wattage bulbs must be replaced with higher intensity bulbs and lamps to provide clear vision for the elderly. Also make sure that the home receives ample sunlight. Elderly people may not have the strength to walk outside the house to soak in the winter sunlight which is helpful for their bones and other ailments. If the house can be remodeled allowing then easier access to sunlight, it can have a positive effect on their mental, emotional and physical health.

Install Grab Bars: Install safety bars which the elderly can hold on to in case of any accidental fall. Shortlist the areas with a potential falling likelihood for the elderly like corners and bathrooms. Installing such garb bars can make a huge difference in case of any accidental fall.

Use Non Skid Bath Mats: Bathroom is one of the most significant places where special attention needs to be given. Using of anti skid bath mats is one of the best ways to avoid an accidental fall in the bathroom.

Install Security Systems: Upgrading or installation of a new internal security system with close circuit TV cameras for the visitors is a must have for every senior citizen house. It is essential to install the system that is easily operated by the elderly in case of an emergency and can report the matter to their neighbors, friends, family or the police.

Don’t Forget the Smoke Alarm: Install a smoke alarm not only in the kitchen but all other rooms of the household to avoid any untoward fire related incident. Elderly specially the ones on certain medication may not realize the extent of fire because of oversleeping. The installation of such smoke alarm systems cuts out the worst case scenario in case of a fire.

Get a Wheelchair Ramp Installed: Get a wheelchair ramp installed outside the home for an emergency situation is one of the best ways to prepare for any eventuality. Health is such an important aspect that one must be prepared for any eventuality all the time. Making the interiors of the house wheelchair friendly is also advised just in case any elderly gets too weak to walk on his or her own and require the assistance of a wheelchair.

Stay Connected: Ask the elderly to stay connected with the friends and family members socially or over the phone each day. If you are living in a different house, make sure you call them each day to keep an update on their health and security. Also make sure you have access to the neighbors and other people living closely in case of any emergencies.

Keep a Portable Mobile Phone: Senior citizens and elderly must be given a set of mobile phone that they can keep with them at all point of time. Make sure that the mobile has speed dialing function enabled and the same is explained to the elderly for quick calling in case of any medical or other emergency.

Checklist before you Leave for Vacation

Ultimately, the date has reached when you will start for your family vacation. It’s all about last minute checking if you have packed all luggage and essentials with you. In this topsy-turvy of pending works, do not forget to check a few details about your home before you leave.

Really don’t want to scare you, but you have to take some safety/preventive steps which will keep your premise safe and secured.

Tell your neighbor: This is the best way to keep an eye on your house when you are not there. Your neighbor must be busy and has his/her busy schedule, however, if he/she take a few minutes time to look at your place it will perfectly serve the purpose. If you have good relationship with them, you may ask them to keep the house keys so that if necessary they can check the house in 2-3 days gap or arrange cleaning.

Close all the curtains: Closing all the curtains is a simple and effective safety feature you must ensure before you leave home. It will create a natural obstruction for intruders from peeping inside the room. Remove all fragile, valuable items from near proximity to windows and if possible use the child safety locks to ensure double protection from the unwanted trespassers.

Turning off pipe lines and electrics switches: In both these cases leakage may create a disaster. Before leaving your place, check twice if all the faucet points in your bathroom, kitchen, and balcony are tightly closed. Also check twice if you have put off all electric switches. To ensure better precaution, you can switch off the main switch before you leave house. But do take out all food items out of refrigerator and leave it open if you are turning it off.

Indoor Plants: You can keep your indoor plants either with your neighbour or you may ask your care taker to keep the plants at his place for a few days for watering.

Arrange garbage removal: Put all garbage into a big plastic bag and after sealing its mouth, ask our gatekeeper to keep the bag with him till garbage cleaner comes next day. This is a way you will find you place is not messy when you are back.

Take care of your pipes: If you live in a cold region and you have decided your holiday in winter, you will have the risk of frozen pipe problem. In these cases keep heat on for keeping water pipes in its condition or else make them insulated for avoiding any wear and tear in plumbing lines.

Some more points

In addition to these ask your newspaper vendor to stop supply of newspapers; unused piles of newspapers in front of the door will indicate your absence. We know you love social networking, but please don’t update your vacation status on net; it will simply make your house safety a bit more vulnerable. And lastly, keep your burglar alarm on, if you have any.

Home and Home Content Insurance in India

Home insurance, also commonly called hazard insurance is the kind of property insurance that offers insurance coverage to the homes. The home owner certainly counts his home as his biggest asset. Home insurance is basically required for the financial security it provides to the property in case of any loss suffered. Home Insurance has two parts—one covers the building, while the other covers the contents of the house.

Home Insurance

The home insurance policy is usually a term contract that is in effect for a fixed period of time. There are mainly two parts for insurance covered. One covers only the building, while the other covers both building and its content.

• Building structure-Insurance covers for a building structure includes compensations paid for losses due to fire, storm, tempest, flood, riot, strike, lightning, explosion & implosion, landslides and rock-slides, bursting or overflowing of water tanks, apparatus and pipes, earthquake and damages to the structure due to acts of terrorism.

• Contents of the home-This coverage is for the loss or damage of the valuables inside the home like the electronic and electrical goods, furniture, clothing, jewelry and any other precious contents inside the home. The contents are covered on the market value of the items and in case of a loss the insurance claim is paid on the value of purchasing a similar new item exempting the depreciation value. This Policy covers your Household contents only and when they are kept in the building but Jewellery is covered against snatching whilst being worn.

 

Content Insurance

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.

In case you sell the property during the policy period you can either do an endorsement to the policy changing the Insured premise address or also have the option to cancel the Policy. In case you have rented out your flat and moved out, if your current policy covers only the building then you can continue with same policy However, if your policy covers both the building and the contents then you need to inform the insurer and get the contents removed from the policy. You will be issued a new policy, which will cover the contents and will mention your new address as the “location of risk”.

Insurance covered under policy

• Content insurance policy covers all your Household articles like, Furniture, Fixtures, Clothing, Carpet, Linen, Electrical items like Refrigerators, Air conditioners, Washing machines, DVD players, Television sets, Tape Recorders and Electronic items like Computers are covered under this Insurance.

• Allied perils including Earthquake and Floods along with Burglary, Housebreaking, and breakdown of mechanical / electrical appliance are also covered under this policy.

• The Insurance cover the Jewels worn by your Spouse, Children and Parents or other family members residing with you. The policy covers your contents only and when they are kept in the building but Jewellery is covered against snatching or lost whilst being worn. Policies also include cover in the event of an injury in your home.

• The contents are covered on market value i.e. the cost of buying a similar new item after deducting appropriate depreciation on the basis of the age of the item. Home used for business purposes such as coaching class, Yoga and other commercial activities are not covered under this policy.