Skip to main content

How to get Home Insurance?

 

How to get insurance?

 

Considering the importance and significance of a home for its owner, it is mandatory for him to get it insured. Home insurance can be obtained from any home insurance company after comparing its policy with that of others. General insurance companies offer policies that cover your home against natural calamities such as fire, floods, earthquakes, or land slides. You have to pay a premium based on the value of your home, belongings and rest assured.

Home insurance policies offer two main covers - the structure of your house and the contents. While structure refers to the walls, floors, ceiling and fixtures of your home, content refers to your belongings such as electronic equipments, domestic appliances, furniture and jewellery. You can buy a cover for either or both of these categories.

It is important to understand how value of sum assured for insurance is arrived at. The valuation for the structure is done on reinstatement basis. This means, the value required to replace your old item with a new one. The structure of your home is usually valued on this basis because, the policy will handle expenses related to reconstruction or fixing the house. It doesn't cover the market value of the house.

In case of contents, the claim is evaluated on a market value basis. This is the value of the item if you were to sell it just before the loss. Essentially, it is the purchase value minus the depreciation. It is important that you make a list of all contents of your home. Attach bills of purchase if possible. This will make the claim procedure easier as it will help investigation.

The general practices involved in home insurance as followed by the home insurance companies in India are as under:

Areas Covered Under Home Insurance

The home insurance policies protect against various natural and man made disasters including:

  • Thefts and Burglaries
  • Fire
  • Earthquake
  • Floods
  • Explosions etc.

Calculation of the Home Insurance Premium or Amount

The factors to be kept in mind while estimating the insurance premium and accepting the home insurance quote being offered by the insurance company are:

  • Area of the House (calculated in sq.ft.)
  • Location and neighborhood
  • Approximate rate of construction (calculated in Rs. per sq.ft.)
  • Permanent construction on the land
  • The time period offered for the insurance. Property more than 50 years old is not covered under home insurance
  • Whether the insurance policy offered is standard or not.

Home Insurance Claim

In case of the above-mentioned disasters, the home insurance companies settle the claim as quickly as possible. The claim settlement procedure under home insurance includes:

  • Personal information like the contact details
  • Details of the policy undertaken
  • Inspection of the site by the company appointed surveyor
  • Claim is processed within two weeks of the complete documentation
  • Claim approval  letter is sent to the claimant with the settlement amount indicated therein
  • Home insurance claim cheque is issued to the policy holder.

Documentation 

The home insurance companies follow fixed procedure to settle the insurance claim. You are required to submit completed documents in order to fasten the claim procedure. These include:

  • Duly completed and signed claim form
  • Copy of the FIR
  • Letter of indemnity

While the policy covers may seem comprehensive, you should look out for policy exclusions that usually stay hidden. Insurance companies usually don't cover any conscious damage to property. Valuables like gold, silver and bullion are not covered unless you opt for a special cover for these. 
Also watch out for certain clauses in the fine print. Some companies don't let you make a claim for damages, if you had left your home unoccupied for more than 30 days, and the calamity occurred during that period.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...
Read more

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...
Read more

JM Financial Mutual Fund - Its Schemes

  JM Financial Mutual Fund is a part of JM Financial Group which is one of the first mutual fund companies in India which started its operation in 1993-1994. JM Financial Asset Management Limited is sponsored by JM Financial group. The mission of the group company is to generate good returns in all the product categories. JM Financial Mutual Fund has launched a variety of schemes in the following categories. ·                            Equity ·                            Debt ·                            Arbitrage ·                            Liquid Equity Schemes: The schemes that are launched in the equity category are: ·                            JM Midcap Fund ·                            JM Balanced Fund ·                            JM Agri and Infra Fund ·                            JM Basic Fund ·                            JM Contra Fund ·                            JM Contra Fund ·                            JM Emerging Leaders Fund ·             ...
Read more

Birla Sun Life MIP II Savings 5

  Birla Sun Life MIP II Savings 5 - Invest Online   Have you traditionally been a debt investor but now wish to test waters in equities? Then, debt-oriented funds such as Birla Sun Life MIP II Savings 5 (Birla Savings 5), which have limited exposure to equities, may fit your requirement. With a five year return of 10.5 per cent compounded annually, the fund managed a good 3-3.5 percentage points more than its benchmark Crisil MIP Blended Index, as well as its category average. The fund appears well poised to capitalise on a falling interest rate scenario and has increased the average portfolio duration of its debt instruments in recent times. Suitability Birla Savings 5 is suitable only for conservative investors. If you want to make a beginning in equities and cannot take any short-term declines in your stride, then this fund will suit you. If you are already an equity investor and want to use a debt-oriented fund merely as a diversifier, then you may prefer peers from the HDFC and Re...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now