The India Risk Survey has estimated that strikes and public unrest have been the number one threat to organizations and property in 2013. Similarly, the economic loss and loss of life the floods in North India wrought in the same year is a grim reminder of the necessity to insure one’s property is. If public property and infrastructure are at threat, can homes and residential property be far behind? Urgency and the requirement to mitigate risk to houses in India calls for proper buying of house insurance.
Ways to Buy House Insurance Prudently
In order to mitigate risks to your house, its valuables and the invaluable lives inside, contemplating some factors before buying house insurance is importance:
Buying your policy online
Buying your house insurance online lowers your monthly premium. This is for the simple reason that the online mode involves no intermediaries, very minimal documentation and fewer other agency costs. As a result, companies can offer lower quotes in order to be competitive. The websites are helpful, with queries answered promptly. Buying online, you also save a lot of time and effort.
Opting for a higher voluntary deductible
Opting for a higher voluntary deductible might seem to burn a hole in your pocket at first, but it is not so. If you agree to pay a portion of the damages at the time of the claim, it will reduce your monthly premium substantially. This may give you adequate cover, while also saving on your monthly premium expenses.
Estimating the value of your property
To estimate a sum insured, while keeping in mind yesteryear prices when you had bought the property is a mistake. FFF (furniture, fittings and fixtures) are to be insured periodically since one has to keep in mind the depreciation factors. Experts suggest that the structure of one’s property should be insured according to the total built-up area.
Buying a comprehensive cover
Although there are house insurance covers available separately for the structure, contents and the people inside the house, it is best to buy a comprehensive cover that includes all these. The contents are covered against fire, burglary, terrorist activity or electrical or mechanical breakdown, and include jewelry and other valuables. The cover for people inside the house includes expenses for alternative accommodation following a contingency, personal accident, workmen’s compensation, and family floater accidental hospitalization. A comprehensive cover usually translates to a lower premium than if you were to take separate insurance covers for each of these.
Fixing wiring and getting the house renovated
If you are looking to save on your house insurance premium, fixing up your property is essential. Fix any damage, get wiring done so as to eliminate chances of outages and fires, and give a thought to getting the roof of your house more resistant to impact.