Characteristics of the Best Home Insurance Policies

 Home insurance is a way to protect oneself, one’s family, and one’s home from external damage or liabilities. India ranks within the top five countries to suffer the most natural disasters in the past decade. Floods alone destroyed 15.6 lakh Indian residences in 2018.

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Protecting your home with insurance helps with financially overcoming such tragedies.

The best home insurance policies have the following characteristics

• Extensive Coverage

Home insurance provides comprehensive coverage in two ways: Damage Cover and Liability Cover. In the first case, it covers for any damages toward your house, and surrounding structures like a backyard, fence, garage or driveway. Events like a robbery, an earthquake, storm, household fire, man made disaster, and impact damage from vehicles or aircraft are typically covered. Damage to any personal property is compensated for. Finally, home insurance cost also pays for damage incurred to any alternative accommodation like rented-out properties.

The best home insurance policies also provide protection from liabilities. Liabilities ensue when a third-party undergoes any bodily harm because of your personal property, whether or not they are on your premises. In such cases, like a tree falling and damaging your neighbor’s backyard, the insurance company shall cover for any legal charges or the cost of repair.

• High Claim Settlement Ratio

To receive home insurance, you need to provide claims of any damage or liabilities that have affected you, your family, a third-party, or your home. You will only be offered sufficient reimbursement once your claims are validated by your insurer. The best home insurance policies offer a high claim settlement ratio.

This is of the number of claims an insurance company has settled versus the number it has received. A high-ratio implies that the insurance provider accepts a lot more claims than it rejects. A good ratio assures you that in case of any damage, there is a high chance you will be compensated. Good home insurance providers also have a low turnaround time claim settlement. This means your claims are processed fast, and your home can be recovered soon after a damaging event occurs.

• Affordable Premiums

A premium is a recurring payment you make to your insurance provider to protect your home. A premium is affected by three factors: the coverage your insurance policy offers, your home’s cost of construction, and the tenure of the policy. Home insurance provides excellent coverage at an affordable cost.

In fact, the best home insurance policies quote the lowest price possible to their clients for the above factors.A general tip to keep your cost of premiums low is to avoid filing small claims where minimal damage was incurred. Another thing to look out for in your policy is a higher cost of deductibles. The greater the deductible cost, the lower your premium.

• Flexible Tenures

Your home insurance cost is often lower in the long-run if you opt for a longer tenure plan. However, the best home insurance policies offer a wide range of tenure options for policyholders. Based on personal requirements, you can opt for anywhere between a few months-long to a decades-long tenure. Families that plan to live in the same space for at least 10 years can opt for a long tenure plan. Whereas, if one’s work requires shifting cities every few months, they can choose plans with a minimum tenure of 3 months. This makes it an attractive plan for tenants as well.

• Plans for Owners and Tenants

Homeowners require insurance for their house and personal property. Tenants, on the other hand, only need it for the latter. The best home insurance policies provide tailor-made plans that cover either of these needs. Homeowners can opt for more comprehensive plans that provide wide coverage. Tenants can choose to safeguard their personal articles when the property is not their own. The latter is carried out through a home content insurance with a flexible tenure ranging from 3 months to 20 years.

In conclusion, home insurance is vital if one lives in a place that is severely affected by natural calamities. A great option for insuring your house is Bajaj Allianz Home Insurance Plans available on Finserv MARKETS. These provide a cover for both homeowners and tenants while offering flexible tenure options with affordable premiums.

 

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