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Home insurance policy, you can cut your losses caused by natural calamities

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Published on March 18, 2021 | Est Read Time: 3 min

With the help of a home insurance policy, one can minimise the losses caused by natural calamities. Very few people think of insuring their house against natural calamities. Natural disasters/magnitude occurrences are unpredictable in a very short time. It can cause devastating results and can result in mighty losses to owners. Home insurance might act as a saviour at such time. Hence insuring the house is becoming critical day by day, especially, in the light of the ever-increasing liabilities of an earning member in the present lifestyle.

Needless to say, before buying a home insurance policy, it is important to ensure it covers everything from your home structure to its belongings as desired. It is important to anticipate what all things can go wrong if the natural calamities really hit you and then compare home insurance against it and come up with a sum assured against it. Here are some guideline tips, for better planning.

Anticipate other damages:

The home insurance has several other benefits as well. The HDFC ERGO Home shield policy provides complete coverage for damage incurred due to natural calamities. The policy can also act as additional security in case of theft. Expensive and luxurious items such as home entertainment systems, computers, and other appliances are covered under the policy. The policy covers valuable jewellery and other valuables at home.

Policy duration:

One can plan to have long term coverage, which also yields a good discount. This long term coverage might have good content coverage limits from which can be beneficial for an insured.

Check the possible inclusions under insurance:

Normally fire damage, natural and human calamities, burglary and theft, breakdown of electrical machinery, and other accidental damages are included. It might be worthwhile to explore it further if anything else can be included.

Additional inclusions:

Many in-house valuables like jewellery, watches and other valuables can also be added. In addition to these, the policy may cover portable items too like laptops, cameras etc.

Provision of alternative accommodation:

The add-ons cover the cost incurred in the case of alternative accommodation. The policy can be enhanced with several add-on covers for extensive coverage. Analyse all the risks your house is prone to or might face in the future. Check out all the likelihoods and then decide the house's coverage.

Prevents further risks:

It is important to secure your home from all possible further risks, and therefore it might make sense to take a good home insurance cover that might secure your financial future in case of a loss. Nature cannot be controlled, but we can certainly control our future. Try to invest in a policy that gives one peace of mind. So, one can be assured and not be worried about the consequences.

Verify Sum insured/maturity amount:

The amount the insurer pays when a claim is made is the sum insured. This must reflect the correct property value. Most people keep the sum insured equal to the market value of the house. It might fall short when the value of the property appreciates. It might be a good idea to go for higher coverage if there are valuable items in the house.

Provide comprehensive insurance:

A comprehensive home insurance policy is required to cover both structure and household items. Home insurance can be clubbed together with one's home loan.

Incremental value growth provision:

Try to plan for an annual plan or a multi-year insurance policy. A yearly insurance policy gives the option to revisit the sum insurer's value every year. Long term policy might yield discounts in the form of low premium rates.

Check out deductible:

Deductible is an amount that needs to be paid while submitting the home insurance claims. This amount is paid by the policyholder and the insurance company pays for the rest. The higher the deductible, the lesser might be the premium.  HDFC ERGO home shield can be your shield in protecting the house from any unforeseen situations. Its vital to keep our home safe just our health. Even we insured our life, health, travel whey should our home take a backseat. Why wait for a disaster to strike when you can buy home insurance in just a click.

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

Registered & Corporate Office: 1st Floor, HDFC House, 165-166 Backbay Reclamation, H. T. Parekh Marg, Churchgate, Mumbai – 400 020. Trade Logo displayed above belongs to HDFC LTD and ERGO International AG and used by HDFC ERGO General Insurance Company Limited under license. For more details on the risk factors, terms and conditions, please read the sales brochure/prospectus before concluding the sale. UIN: Home Shield Insurance IRDAN 125P0001V01201718. IRDAI Reg. No.146 CIN: U66030MH2007PLC177117.UID D2-48

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