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5 reasons to opt for high-value home insurance

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Arjun and Harleen Singh always had a dream of buying a villa on a scenic beach and spending their post-retirement days there. They worked hard and saved every penny they could to fulfill their dream and bought their dream house. While shifting to their new home, they took along with them everything they had bought over the decades to decorate their home like antiques, furniture, jewellery, paintings and a lot more. But here’s the thing about coastal areas, they are always in the eye of a tsunami or cyclone. So, someone like the Singhs should not go for a standard home insurance, but a high-value one. Let’s discuss more.  

Benefits of increased coverage limits under a high-value home insurance policy

• Protection against possible disasters: You can rely on a standard policy if your house is located in a safe neighbourhood. But let’s say you live in a hilly area and then there is always the risk of a landslide. Likewise, people living near a river should take measures against a possible flood. A natural or man-made disaster even like a minor short-circuit can cause great destruction. In absence of home insurance, one can lose all their savings in rebuilding or repairing the structure as well as replacing the lost items. And, high-value home insurance cover protects you against most disasters and protects your finances.   

• High sum insured: If your home is located in a posh area and has a great market value, a policy with a smaller sum insured will not be able to cover your damages. The same would be the case if you have costly contents in your home. A painting or a piece of jewellery, for example, can run into a few lakhs. Therefore, only a higher sum insured can ensure that you have your peace of mind.   

• Wide list of contents that can be covered: When it comes to protecting your contents, the standard policy would have its limitation in terms of the items you can list as part of the policy. But with high-value coverage, you can add more items you wish to insure.  

• Long-term policies: The high-value policies are meant to go the long way and come with the option of long-term policies.  

• Lesser exclusions: When a policy buyer opts for increased coverage limits under a high-value home insurance policy, the number of exclusions also goes down compared to a basic policy. Along with that, the policyholder also enjoys many other benefits. However, it goes without saying that you should always read the policy wording carefully to understand the various inclusions and exclusions. By doing so, you will eliminate any chance of rejection of the claim request.

Conclusion

As years go by, the structure of the home gets weaker and any natural disaster can cause irreparable damage. Similarly, if the expensive contents get stolen or damaged, replacing them can cost a fortune. So, it’s always advisable to understand many possible risks and decide the coverage accordingly as the premium of the policy depends a lot on what all you want to protect. You should also compare different deals to zero-in on the best offer.  The concept of home insurance is gradually gaining more acceptance as people are now realising the importance of shielding the property and its many expensive contents. In case of an unforeseen and unfortunate event, high-value home insurance will help you get back on your feet in no time and save you from heavy financial losses.

Disclaimer:  The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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