Insurance is the financial deal of the policy holder and the insurance company. Through this financial deal, the insurance company ensures that they will financially help to the policy holder whenever he faces the losses problem. But for that policy holder needs to pay regular premium amount to the insurance policy company to keep active their insurance policy in insurance company.
Home insurance is one of the kind of the insurance policy. This article will gives you all the information about the home insurance like the what is Home insurance, various terms in that, how many it cost’s, How to get this insurance, what it actually covers as well what not covers, It’s Benefits and types etc.
When peoples invest their money on the building the home, or someone who complete their dreams to built their self owned home rather than stays in rent home then if this home gets damaged due to natural disaster or Man made disasters, Owner will face the financial losses. Hence the insurance company offers the Home insurance service which covers the private residence related losses.
When the home owner registers for the Home insurance policy, he needs to regularly pay the premium amount to the insurer and whenever home owner faces the private residence or the home losses then home owner can claim for insurance amount to the insurer.
What is Home Insurance ?
Home insurance is the agreement for the financial cover to the home losses between the Home owner and the Insurer or insurance company.
When a homeowner has a sudden home crisis, the insurance company provides financial assistance to cover the cost of the home owner’s losses. The Home insurance is also known as the Homeowener’s insurance.
The premium amount that policy holder have to pay to the insurer is varies means it is depends on the lot of factors such as the cost of the personal properties, coverage’s selected etc. Home insurance is not mandatory but it is very helpful and to secure your home at the time of perils.
Most of the peoples are realizes the importance of the Home insurance when they suffers from the financial losses due to the damages to their diligently made dream home.
The insurance company or also known as insurer help the insured when insured face the problems like the damage to the home due to the wind, rain, fire & smoke, hail and lightning strikes, damages of the personal belongings like the clothing, metal products, furniture and electronics products etc.
The home insurance includes various types of coverage’s such as it includes Personal property coverage, Dwelling coverage, Liability coverage and other structures coverage.
Various terms used in Home Insurance
Whever the people are thinking to purchase the home insurance policy, they searches on internet, meets with the insurance agents as well as visits many insurance agencies.
There are many terms peoples hears when they starts searching about the Home insurance. Some of them important terms are as follows :-
1] Insurance Agency or Company :- Insurance Agency or Company is the Home insurance policy service provider.
2] Insurance agent :- Insurance agent is the certificated person from the insurance agencies who aware peoples about the insurance policy and make insurance contracts with them.
3] Coverage :- It is the type of security provides by the insurance company. There are many types of coverage’s listed in home insurance like structures coverage, Dwelling coverage, Personal property coverage and Liability coverage.
If the policy holder faces any of the losses that includes in any of the coverages then he can claim to the insurance company.
4] Insured person or Policy holder :- Insured person or Policy holder is the home owner which registers for the Home insurance policy.
5] Liability :- Liability meaning is the home owners responsibility for the injury to third party due to your damage of personal residence. For the liability, the insurance company offers the liability coverage in the home insurance policy.
6] Liability coverage :- Liability coverage covers the damage causes to the third party due to the policy holder like damage to the property or injury to the third party.
6] Peril :- It is the risk of danger to the home due to many reasons like the natural disaster.
7] Premium :- It is the amount of money that insured pays to the insurance company for the keep their home insurance policy active.
8] Adjuster :- When policy holder claims for any losses then adjuster is the person employed by the insurance agency who checks that what types and how mush losses occurs at the policy holder residence and send measured data to the insurance company.
9] Dwelling insurance :- Dwelling insurance is the policy for the financial security for the Home damage due to the smoke, fire, wind, hail etc. If policy holder is faces the some of this losses then he can claim for that to the insurance company.
10] Personal property :- Personal property is the belongings of the policy holder like the furniture, clothe, jwellery, documents, electronics goods ect. The personal property coverage in home insurance policy is covers the losses of the personal property.
Coverages in the Home insurance policy
Coverages is the type of security provides by the insurance company. The home insurance includes many coverage’s by which if policy holder faces any type of losses which includes into the an coverage then policy holder can claim to the insurer.
The losses which are not included in any coverages then policy holder can not claim for the losses. The policy holder is responsible for the same.
The coverages included in the Home insurance policy are as follows :-
1] Dwelling coverage
2] Liability coverage
3] Personal property coverage
4] Other structures coverage
5] Medical coverage
1] Dwelling coverage :-
Dwelling coverage is the coverage which covers the financial security for the Home damages due to the Wind, Fire, Hail, smoke and lighting strikes.
If policy holder faces the such problem then he can claim to the insurance company. Insurance company financially helps to the policy person to repair or rebuild the home.
It is the mostly choosed home insurance coverage. Dwelling coverage also covers the losses of the structures connected to the policy holder’s home.
In the dwelling coverage, the insurance company only pays the amount that is required to repair or the rebuild the home.
2] Liability coverage :-
Liability coverage is the coverage which covers the losses causes to the third party and if the house owner is the responsible for that.
The policy holder can claim to the insurance company for medical expenses or damages to the third party property.
The liability coverage covers the policy holder legal expenses, third party medical expenses, third party damaged property repairing cost etc.
3] Personal property coverage :-
Personal property coverage is the coverage which covers the losses of policy holders personal properties if these are theft, damaged by disaster, storm.
By personal property coverage, insurer pays the property cost to the policy holder or replaces that.
The personal property coverage includes the coverage of personal property like Clothes, jewellery, Home furniture and electronics products like Refrigerators, Televisions, Sound system, air conditioner etc.
4] Other structures coverage :-
Other structures coverage is the coverage for the damages to the other connected structures to policy holder homes like sheds, fences and their garage nearby home.
For the losses of this structures policy holder can claim to the insurer. The claim amount of the structure coverage is around the 10 percent of the dwelling coverage’s.
This coverage does not covers the damage to other structures, if the damages to it is causes by the earth-quake and tear and the food.
5] Medical coverage :-
The medical coverage is the coverage for the covers a medical expenses to the injury to policy holder, their family members and another third persons in the policy holder’s property.
What does Home insurance does not covers ?
The home insurance is the best policy to secure your property investment but it is very necessary to check that what home insurance does not covers before purchasing the home insurance policy.
The policy holder’s home damage causes due to the following reasons is not eligible for a claim the insurance amount :-
1] Due to the Earthquake
2] Act of terrorism
3] Due to the Nuclear radiation.
4] Due to the Flooding
5] Military attack
5] Due to the Fungus Infestations
6] Due to Tear
7] Civil war
9] Intentionally damages.
How much Home insurance cost ?
The cost of the home insurance is varies with choosed coverages. It is depends on the many factors such as the cost of the home, the cost of the personal property, The home features.
The cost will be more if you expand your coverage. At the time of purchase the home insurance policy, the insurance agent will help you to all the coverage’s selection and the resulting cost for that coverage’s.
Home insurance is necessary ?
The purchasing of the Home insurance policy is not necessary as per the any government rules but it is very significant to protect your property and to keeps you stress-free from facing the financial loss.
A lot of people build houses by saving their life earnings, For them if this houses gets damaged then they will lose that they earned in their whole life hence the home insurance is the best policy to financially secure your home.
Steps to get Home insurance
The steps to get the home insurance is as follows :-
Step 1 :- Gather or collect the all information of the Home insurance
Step 2 :- Decide the your home insurance needs
Step 3 :- Decide where you want to purchase the home insurance policy
Step 4 :- Compare the different agencies quotes as per your required coverage’s
Step 5 :- Purchase the home insurance policy
Home insurance policy providers in India
Some of the home insurance policy providers in the India are as follows :-
1] HDFC ERGO Home insurance
2] Policy Bazaar Home insurance
3] Royal Sundaram Home insurance
4] ICICI lombard home insurance
5] SBI General long home insurance
6] Oriental general home house holder insurance plan
7] New India Insurance Griha Suvidha Plan
Benefits of the Home Insurance
The home insurance has the following benefits that’s why it is the best policy that peoples should consider to financially secure their home :-
1] It covers the losses related to the dwelling such as the damages to home due to Wind, Fire, Hail, smoke and lighting strikes etc.
2] It covers the personal properties losses like the losses of the personal home belongings like Clothes, jewellery, Home furniture and electronics products like Refrigerators, Televisions, Sound system, air conditioner etc
3] It covers the property damages, medical expenses to the third party with the liability coverage.
4] Home insurance cover the insurance amount for the losses of other structures connected to the home like sheds, fences and their garage nearby home.
Therefore, When a homeowner has a sudden home crisis, the insurance company provides financial assistance to cover the cost of the home owner’s losses. The home insurance policy is the beneficial for the peoples if they want to financially secure their home rather than facing the financial losses. I hope This article have gave you all the information about the home insurance policy.