Buying a Home? Gift Yourself a Suitable Insurance Plan

Regardless of being purchased at any stage of life, your home is undoubtedly your biggest investment – right? Because of this reason, and as a home-owner, it becomes one your primary responsibilities to insure your residential premises, at the earliest.

Do you really need a Home Insurance?

But before you settle upon a particular homeowner’s insurance, you are bound to be vexed by a few vital questions. You may wonder if home insurance is indeed necessary or want to know a little more about the value of this type of insurance. You may also wonder if it will really pay off later if you insure your home now. The answer to these doubts is that the act of insuring your biggest investment is rather important, primarily due to the following fundamental reasons:

Your home is your most important investment

In spite of the rise and fall in the market and challenging periods of recession that make you feel that the price of real estate will never bounce back, the value of houses typically increase over time, unlike that of other possessions such as cars.

Your home is your most important investment

True that a home insurance plan cannot put a stop to a natural catastrophe, but it will surely act as a shock absorbed during times of such crises. Keeping that in mind, you will be at peace knowing that you have the necessary equipment to brave any natural phenomenon.

Home insurance policy often pays for theft, damage or destruction of valuables

Another advantage of having a home insurance policy is that you will be able to recoup damages if there is a theft in your house. Similarly, in case of fires or other accidents, your insurance will enable you to pay for the required replacements/repairing of your valuable belongings.

It prevents you from getting sued in case of any accidents:

A home insurance policy not just helps by providing financial aid in times of catastrophe, it also safeguards you from being sued, should a person visiting your house gets hurt due to some accident. Under such circumstances, you can make a claim on your policy and the insurance company will in turn reimburse the guest for a majority portion of their medical expenses, given that you pay your deductible amount.

Things to Keep in Mind

Choosing the home proper insurance plan that suits your requirements is important for gaining greater levels of peace of mind. Before you zero down on a particular homeowners insurance policy, or if you are considering switching insurance providers; you should be careful to conduct a thorough research of all the options available on hand, so that you can be sure of picking the coverage that best suits your immediate needs.

Since your insurance policy will have a content provision that insures all the belongings in your home, you should make sure that the cover provided by your plan encompasses not just the cost of the items but also their replacement costs.

YES, you do need a Home Insurance

In order to make sure that their collateral is protected, your lending institution will require you to carry a policy. In most cases your lenders will want you to cover the amount on your loan so that even if your house is destroyed, theirs debt are easily taken care of. You may also be asked by your lenders to include all monthly premiums on your payments. This will then be held in an escrow account and the bank in turn will pay for your renewals, every year.

However, before seeking your Home insurance, do ensure that all these concerns are taken well care of, and you will not end up getting disappointed.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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