A home insurance policy is as good as what the policy document states. So, before you opt for a home insurance policy, the policy holder must ensure that it aligns with their hopes and expectations, at least substantially — if not in entirety.
A home insurance policy is quite similar to other policies as well. So, it is imperative to carefully go through different clauses and look for any hidden ones which are enshrined in the policy’s fine print.
One should also evaluate whether there is an error of omission or commission on the part of the insurer. And if that is the case, the policyholder should let the insurer know and request for the requisite amendment. Here, we bust six myths related to home insurance policy.
However, one should make note of the finer points in the insurance policy document.
These are some of the points one should look for:
1. First and foremost one should know the limits of the insurance policy. For instance, the policy holder should know of the individual limits of items insured in the house and that of the house, and other limits, if any.
2. Amid hundreds of points and clauses of an insurance policy, the policy holder should closely look at some of the key features and clauses which matter to him/her specifically. For instance, if the house in located in a flood prone area, it is vital to check if the policy covers the protection against floods or not.
3. Different plans and their add-on covers: It’s pertinent to know the finer nuances of policy that the insurer offers and how it stacks up for the policy holder.
There could be some add-on covers that can make the insurance policy comprehensive and useful. For instance, some insurers have an add-on cover for the electronic and other items, whereas the core policy covers only the reconstruction cost of house in case of the house damage.
4. Making a claim: It is indispensable for a policy holder to know how to make an insurance claim. The process of applying for an insurance claim should be clearly stated and must be understood before buying the policy cover.
If there is a process of an assessor who will evaluate the total value of loss, there should at least be a provision to challenge that value.
5. Liability cover: One should also assess the liability coverage that includes protection against financial losses resulting from legal claims filed against them for injury or damage occurred on their property. It covers legal expenses and settlements.
In conclusion, one should remember that any insurance policy document is a general document that has something for everyone but not everything for everyone. It’s like a vast buffet meal, and you should be aware of what you should eat, and what to skip.