Why Compare Home Insurance Policies Before Buying?

We all have a picture of what the ideal dream home looks like in our head – a quaint little independent house nestled amidst scenic hills, an expansive resort by the beach or a towering high-rise apartment overlooking the entire city! We work hard to realize these dream homes and we feel relieved when we put the money down to buy the place. However, we often end up overlooking a crucial part of this process – home insurance.

Why buy home insurance?

Since precious time, money and effort have been spent on your home, it is only natural that you ought to protect the place from perils both natural and man-made. Home insurance offers a comprehensive package of policies that cover your dream home from fires, lightning, floods, storms, explosions, theft and earthquake.

Types of home insurance coverage

Insurance companies offer a wide range of home insurance policy types. You need to know what is covered and what isn’t under your home insurance plan, so that you can compare and choose the best fit that covers your expected types of home insurance claims. Let’s take a quick look at the home insurance coverage.

  • Standard Fire and Special Perils: This cover protects the insured home against losses and damages due to fire in addition to other natural calamities like lightning, storms, landslides, floods, earthquake coverage. Other risks like explosion/implosions, riots, strikes and malicious damages are also covered.
  • Theft & Burglary cover: These policies cover theft, larceny and burglary of contents from the insured premises. Please note that jewellery and valuables It is to be noted that wilful misconduct/negligence, damages due to pollution, war, wear and tear and cost of land are not covered under the home insurance policy.

Factors to consider while comparing

Buying home insurance can certainly be overwhelming with the sheer number of plans on offer. When looking at home insurance policies, it is highly recommended that the following factors are considered.

  • Competitive premium: Premium is the sum of money that is paid periodically to maintain coverage. It is calculated based on a number of factors like the cost of construction of your home, age of the house, etc. Be sure to compare premiums charged by different companies before choosing your plan.
  • Checking premium vs deductibles: A deductible is a sum of money that you agree to pay towards the losses or damages before the insurance company reimburses you. The more you volunteer to pay as a deductible, lesser will be your premium amount.
  • Financial rating check: The financial rating of the insurance company is usually a strong indicator of the company’s capacity to handle and settle claims satisfactorily.

Benefits of comparing beforehand

Comparing the different types of home insurance policies on offer at HDFC ERGOensures that you get the best policy coverage for your dream home. Insurance fraud is a real threat to customers and insurance companies alike, so you have to be thorough with your fact-finding and comparison. The reliable insurance experts at HDFC ERGO are always ready to help you out with all your home insurance needs!

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