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Insurance Tips For The First Time Homebuyers

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At any time a new family or home owner/person aspiring to buy an Insurance, face a problem, as to ‘what to look for, or why or when or where and who’? These are the obvious questions pops up in the mind, maybe at different times, different situations or circumstances. Well, here is a brief starter on all these questions.

So, as a new home buyer, let us look at the some important tips. Before buying home insurance, once the buyer gathers all this information, s/he can be sufficiently armed with self-information.

Understand the home insurance meaning:

Home insurance is a security against one’s home or property, to protect it against future losses, disasters, natural calamities. This is done by way of paying a fixed amount against the valuation of the insurance buyer’s home/property.

Information gathering:

A surest way to gather this information, nowadays is via Google and it is freely available to most of the smart phone, laptop users. Apart from this, people can consult trusted insurance agents or experts.

Coverage of property:

While going for home/property insurance, it is important to decide one’s budget, proprieties and what is to be insured and then proceed with the further work.

The right insurance company:

Find out the right insurance company convenient to buyer. This convenience can include, their offices nearby, their timings, services, different schemes, benefits, inclusions/exclusion and most important, if their schemes fit in buyer’s financial budget.

Coverage Internal/External:

It is important for a buyer to decide if s/he wishes to insure only home property and surrounding or if they wish to insure internal things like valuables, machinery and other such things.

The host company’s track record:

Before proceeding with a selected company, it might be important to verify the company’s track record. It should be financially stable, should NOT be in any kind of legal, non-legal disputes. They should be reasonably quick in their services and ideally it must be in the market for a long duration.

Premium amount/Maturity value:

The schemes should ideally fit in buyer’s budget by way of premium amount and future maturity value should give desired benefit to buyer, by way of percentage growth, future discounts, etc.

Premium frequency:

Premium frequency should fall as per buyer’s convenience. Many a times it may fall due when the buyer’s source of earning might be in slack, which might result into premium failure and possible insurance process disconnect.

Premium failure/recovery process and other services:

Few insurance companies do provide a bypass or a work around, if buyer fails to pay the insurance premium in time. It might be done with a penalty amount or grace day’s period. In addition to all the above, it might be a good idea to verify insurance providers policies on nominees provision, settlement process, turnaround time, etc.

Age/geographical limitations on property:

Due to statutory directives, there could be limitations on property based on the locations, age and other existent hazards. There could be limitations and exclusions on.

Based on the answers to these questions, it is possible to judge the insurance provider’s credit worthiness, standing in the market, our convenience and post-sales service efficacy and take a well-judged decision.

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