Home Insurance Tips: These things are not covered in home insurance, if you do not take care of them then you will incur loss..

Everyone dreams of having their own home. To fulfill this dream, people put all their savings at stake. They also take home loans. In such a situation, everyone also wants to protect their dream home. For this, home insurance is very important, which comes in handy in case of an accident.

But, while taking a home loan, you should pay special attention to which things are covered by the insurance and which things are not.

Who does home insurance?

General insurance companies insure your home. Many things are covered in it. Such as compensation for damage to the house due to flood, storm, or fire. But, while getting the house insured, the terms and conditions should be looked at carefully. It is written in it that in which cases you will get coverage and in which you will not.

Commercial use of the house
If you get the house insured and then give it for commercial use, then it will become a commercial property. In this situation, your home insurance policy will not cover that property. If you are planning to rent out the house for commercial use, then there is no benefit in insuring it.

Demolition order
If any government authority orders the demolition of the house, then also home insurance will not be of any use to you. The government often orders the demolition of illegal construction. To avoid this, you should check the documents closely before buying or building a house.

Loss due to poor construction
If any kind of loss occurs due to construction defects, then also the insurance company can reject the claim. In such a situation, while building the house, you should ensure that all the materials are of good quality. If the contractor is using a poor-quality product, then he should also be refused.

Home insurance premium
The premium of home insurance is decided on the price of the house, location, and other factors. Generally, the premium of home insurance can be from 0.5 percent to 2 percent per annum according to the price of the house. However, before taking home insurance, one should consult a financial advisor.