Taking home insurance? First, know these 5 things; otherwise, you may have to visit the company for a claim later

Nowadays people take home insurance to keep their home safe. But sometimes due to small mistakes, problems arise at the time of claim. In this news, we will tell you those 5 important things, which must be seen before taking insurance, otherwise the claim can also be rejected and you may have to visit the company again and again.

Home is the most valuable asset of every person. In such a situation, everyone takes every necessary step for the safety of their home. Nowadays, to avoid increasing accidents, theft and natural disasters, people have started considering it necessary to take home insurance. This insurance gives you mental peace that in case of any untoward incident, your home and belongings will be safe.

However, often people take the policy in a hurry and do not read its terms and conditions properly. The result is that when it comes to making a claim, they get disappointed. Sometimes the company directly rejects the claim or the process becomes so long that people have to bear heavy losses.

1. Understand the coverage well

Often people buy the policy just by looking at the premium. But later it is found that all the risks of the house are not covered in it. Some policies cover only the structure, while some also include furniture and electronics. Sometimes in case of natural disasters like flood, earthquake or fire, the claim will be received only if you have taken coverage for that risk. Before taking the policy, read the coverage list well and choose the option according to your need.

2. Avoid underinsurance

Many people take insurance on a lower value of the house to save money. But when the loss is high, the claim is not received for the full amount. For example, if the value of your house is 50 lakhs and you have taken insurance of only 25 lakhs, then in case of loss, the company will also cover only that much part. In such a situation, always get the house and the goods in it insured at the right price.

3. Know the terms and exclusions of the policy

Every policy has some terms and "exclusions" i.e. cases in which the claim will not be given. Such as intentional damage, accident caused by weakness of old structure or war like situation. In many policies, separate coverage has to be taken for jewellery or expensive items. Read the policy document carefully, so that there are no surprises later.

4. Do not forget to pay the premium on time

Many people buy the policy, but do not pay the premium on time. Due to this, the policy lapses and then the right to claim ends. Some companies give grace period but after that the policy gets automatically cancelled. Therefore, set a reminder in your phone and pay the premium on time or use auto payment.

5. It is very important to give correct information

If you give wrong information while buying the policy, then there can be problems at the time of claim. Such as hiding the real price of the house, not telling about the old damage or giving wrong information about the security arrangements. Companies investigate and can reject the claim if incorrect information is found.

Compare and then buy

Nowadays there are many online portals where you can compare the policies of different companies according to premium and coverage.

Conclusion

Home insurance is an important way to keep your home safe. But before taking it, it is very important to understand the coverage, terms and premium well. A small negligence can cause the claim to be rejected. Therefore, choose the policy wisely and pay its premium on time.

Frequently Asked Questions (FAQs)

Q1. What is covered by home insurance?

The structure of the house, furniture, electronics and sometimes even jewelry is covered, it depends on the policy.

Q2. Is the claim available in natural disasters as well?

Yes, but only if you have included coverage for that disaster in the policy.

Q3. What will happen if I do not pay the premium on time?

The policy will lapse and the right to claim will end.

Q4. Can I buy home insurance online?

Yes, nowadays policies can be easily bought on many portals.

Q5. What is the biggest mistake people make while buying insurance?

People do not read the coverage properly and give wrong information, due to which the claim gets rejected.