For most of us, our home is (one of) the most valuable asset. In fact, having an own house is one of the most cherished desire for most of us.
Few fortunate ones are able to purchase a house sooner than many others, some have to borrow the money to buy a house and many end up putting in their lifetime’s savings into buying their home.
Effectively, a home usually becomes one of the biggest investments a person makes in his or her life.
Imagine a situation in which either the structure of the house gets damaged due to a natural (or even man-made) disaster or the content inside the house.
For most, a serious damage to the house or its contents would mean a major financial loss, and for many, it could mean loss of their lifelong savings! If the home is damaged or completely destroyed, owners risk losing almost every materialistic asset that they own and may find it extremely difficult, if not impossible, to restore it back.
A Home Insurance plan is possibly the ideal tool to salvage one’s assets in the event of a major damage to the structure of the home or its contents.
While people in India have been somewhat indifferent towards the idea of Home Insurance so far and a Home Insurance was considered as an avoidable expense.
However, there has been a change in this attitude, especially after a series of devastating earthquakes in Nepal earlier this year.
We reiterate that a Home Insurance is an important aspect of owning a property because if something goes wrong, the victims may still have a ray of hope from a potential complete economical breakdown.
Most people who take insurance for their homes think themselves as adequately covered.
However, there are times when people may not be sufficiently covered and a tragedy like an earthquake or a burglary might take away more from the home owner than they may have expected as a worse-case scenario.
Therefore, it is important for individuals to opt for the right insurance for their home.
There are a number of aspects that one must consider before finalizing on an insurance contract.
The first and most vital aspect to check is whether the insurance cover is finalized after calculating the actual and true value of the home and all the valuable assets of the home that come under the cover.
If the insurance is undervalued, one may not be able to cover their losses fully and may not be able to live peacefully even after having the assurance of a risk cover.
Another factor that one must check before the investment is to make sure that the insurance provider is trustable and has deep understanding of the property.
Home insurance must be taken only after a thorough check about the reputation of the insurance provider.
The insurance company must be a stable one, so that in case of emergency it is able to help out victims without them having to wait their turn for ages before any help is received.
Finally it is essential to read the fine print and know all the terms and conditions before taking a Home Insurance.
If the insurance cover is taken without making a thorough study or without comparisons, the chances are high that one may end up getting with a product that is not the correct one.