First-Time Home Buyer’s Guide to Insurance

Home is the single largest investment for many. Thus, it is important you get the right one ticking off all your requirements. While it is a dream to buy a house of their own for many, it requires financial commitment, research and diligence.

If you are a first-time buyer, make sure to attain an in-depth understanding on not just its buying process, but also on keeping it safe. While security is an important part for a homeowner, home insurance is what helps to safeguard it.

Home insurance plans ensure a financial backup in the event of an unfortunate accident damaging your house. These events can be accidents like fires or thefts and even natural calamities that may even require its reconstruction. Thus, to have financial coverage for these unpredictable situations, a home insurance plan comes handy.

There are several plans to decide when narrowing on a home insurance cover. This article helps lay down a comprehensive guide for first-time buyers of home insurance plans. Continue reading to know more.

  • Understanding what your home insurance plan covers

The first step in deciding on the right home insurance policy is to know in-depth about your home insurance plan. While it is a common misconception that only homeowners can buy one, it is actually available for tenants too.

In India, home insurance plans are available in two types — structure insurance and contents insurance. As the name suggests, structure insurance covers the damages to the structure of the house whereas a content insurance cover protects the contents secured at the beginning of the coverage. Depending on the location of your house and type of home (owned or rented), first-time buyers must choose a suitable insurance cover.

  • Furnishing adequate information

When applying for home insurance make sure to remember to furnish accurate information about your property concerning its title, legality, area details and also for the content inside. For instance, make sure to get the information right about the area of your home, along with furnishing building plans and also the electronic appliances, jewellery and artefacts in your house that you want to insure.

  • Keep in mind the exclusions of your policy

Another important consideration to remember when buying the perfect home insurance coverage is the exclusion of your policy. While it is essential to stay on top of what is included in your plan, it is also critical to know what isn’t. This helps you to stay aware of the events that the insurance company won’t compensate for and won’t come as a surprise during the claim. *

For instance, many policies exclude damages due to contamination, seepage, events of war, etc. Knowing these events aren’t included in your policy’s scope helps you be prepared in future.

  • Enhancing coverage using add-ons

Add-ons are optional covers that are available to purchase when you buy a home insurance plan. These covers help enhance the policy coverage including the exclusions within its scope. Depending upon the add-ons your insurer has to offer, make sure to select only the necessary ones as they end up increasing the overall premium of your coverage. To decide which add-ons are right and compare them head-to-head, you can also make use of a home insurance calculator which is a free tool.

These tips can help in selecting a suitable insurance cover to safeguard your house. While you buy one, make sure to compare the home insurance quotes online and remember the documents that are required to submit when raising an insurance claim as it helps being prepared in advance.

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.