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Things to Keep in Mind Before Purchasing Home Insurance | Chola MS

Home Insurance

Purchasing a home is a milestone achievement in an individual’s life. It’s a dream for many of us. Therefore, it becomes essential to safeguard one’s precious home against unforeseen circumstances. This is where home insurance comes in handy. Home insurance is a type of insurance policy that provides financial coverage to homeowners against damages caused to their property due to natural calamities or man-made disasters. However, it is not mandatory as per the Government to have home insurance.

Choosing the right home insurance policy can be a daunting task, especially for first-time buyers. In this blog, we at Chola MS General Insurance list essential things to keep in mind before purchasing home insurance in India.

Things to consider before purchasing home insurance

Coverage

One of the most important things to consider before purchasing home insurance is the coverage offered by the policy. The coverage should be adequate enough to cover the cost of rebuilding or repairing your home in case of damage due to natural calamities or other events. Make sure to read the policy document carefully and understand what is covered and what is not. Some common coverage options include fire and allied perils, burglary, earthquake, flood, etc.

Premium

Another important factor to consider is the premium or the amount you need to pay for the insurance policy. The premium amount may vary based on the coverage, location, type of property, and other factors. Make sure to compare the premium amount of different insurance providers before making a decision.

Insured value

The insured value of the property is the maximum amount that the insurance company will pay in case of damage or loss. It is essential to ensure that the insured value is adequate to cover the cost of rebuilding or repairing the property. In case the insured value is less than the actual value, you may have to bear the additional cost.

Add-ons

Some insurance providers offer add-on covers, which provide additional coverage for specific events or items. For instance, you may opt for a cover for jewelry or electronic items in case of theft. Make sure to evaluate the add-ons offered by different providers and choose the one that suits your needs.

Deductible

A deductible is an amount that you need to pay from your pocket before the insurance company starts paying for the damages. The higher the deductible, the lower will be the premium amount. However, it is essential to ensure that the deductible amount is reasonable and does not burden you in case of damage or loss.

Exclusions

Most insurance policies have exclusions or events that are not covered under the policy. It is essential to read the policy document carefully and understand the exclusions before purchasing the policy. Some common exclusions include war, nuclear disasters, wear and tear, and intentional damage.

Claim settlement process

The claim settlement process is one of the most critical aspects of home insurance. It is essential to choose an insurance provider that has a simple and hassle-free claim settlement process. Make sure to read reviews and feedback from existing customers to understand the claim settlement process of different providers.

The reputation of the insurance provider

The reputation of the insurance provider is another important factor to consider before purchasing home insurance. Make sure to choose an insurance provider that has a good reputation and a proven track record of settling claims promptly and efficiently.

Customer service

Good customer service is crucial when it comes to home insurance. Make sure to choose an insurance provider that has a dedicated customer service team and provides quick and efficient support in case of any queries or issues.

Discounts

Finally, some insurance providers offer discounts on the premium amount if you have installed safety devices like smoke detectors, fire extinguishers, or security cameras. Make sure to check if your insurance provider offers any such discounts and take advantage of them.

In conclusion, home insurance is an essential investment for homeowners in India. It provides financial protection against unforeseen events and helps you safeguard your valuable property. However, it is essential to keep in mind the above-mentioned factors before making a decision.

Understand your requirements from the insurance and find a policy that suits your budget as well. With Chola MS general insurance plans, you can pick a home insurance plan in particular and you have options to choose from so you can make a decision that suits your situation.

You can read more about Chola MS general insurance and home insurance in particular here. You can also submit basic contact information so we can reach out to you and clarify any queries you may have before purchasing home insurance. We would be happy to answer your questions and ensure you are properly informed before making a decision.

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