10 Crucial Things To Remember When Purchasing A Home Insurance Policy


Are You Looking To Secure Your Home? 10 Crucial Things To Remember When Purchasing A Home Insurance Policy

If any crucial information is missing before appending your signature on that document, you might end up not receiving the adequate compensation during a misfortune or may require you to pay higher premiums.

A vast majority of homeowners have started to recognize the need to put their property and its content under protection in the event of a disaster or any other misfortune.

The insurance for homeowners also known as home insurance has certainly begun to gain prominence. Especially after the destruction that resulted from the Mumbai floods and Gujarat earthquake. Mostly because many individuals have begun to identify the necessity of putting their dream home and its content under protection from natural misfortunes and other disasters.

But after taking that decision to apply for coverage in order to have peace of mind and put your most priced possession under protection, it is better to perform a reality check. Missing out an important thing after the signature has been signed might prevent you from being adequately compensated when a disaster occurs or even end up paying a higher premium.

We have therefore highlighted 10 important things that must be considered before opting for that home insurance coverage

Sum Insured (Property and contents)

The reinstatement value must be equal to the sum insured for the property and lasting furniture, fixtures, and fittings. Reinstatement value is the value of replacing the asset at the occurrence of a loss or disaster. The objective of the sum insured is the market value of household goods different from electrical, mechanical, and electronic gadgets that are covered under the policy. The market value is the value for procuring the goods from a similar source during the occurrence of the loss or disaster to reduce the suitable depreciation. You must be certain that the sum insured is fixed appropriately for the property and its contents to prevent under coverage average deductions when the claim is filed, according to the MD and CEO, Universal Sompo General Insurance, Rajiv Kumar.

Basis of first loss

A home insurance policy on a basis of first loss is ideal for those who believe that all their contents cannot be destroyed in the event of a disaster or mishap. In this case, you will not be penalized by the insurer for under coverage during a claim. For example, Universal Sompo General Insurance offered a first loss basis to SampoonaGrih Suraksha. A first loss basis will enable you to save a lot of money.

Compulsory or optional covers

Multiple coverage sections are usually available, which makes it important to only opt for the one you require the most. Few crucial coverage plans available in a home insurance plan are Burglary and Theft, Fire and Allied Perils, Plate Glass, All Risk (watches and jewelry), personal accident, electronic devices, employee compensation, public liability, breakdown of domestic appliances, repair costs, loss of rent, additional rent charges for alternative accommodation and so on.


Select a low-cost insurance coverage that provides the best possible coverage. Kumar stated that irrelevant coverage that is not important can be avoided. Your home insurance policy should be adaptable enough to enable you to select your preferred option that will meet your budget and requirement. For example, if your home does not have enough glass fitting, plate glass cover can be removed.


Every exclusion available in your home insurance should be closely considered to prevent a claim denial or mix-up. The list of the things that will be excluded in the insurance policy will be highlighted in every covered section. You should check under the All Risk section (valuables and jewelry) because the policy only covers the damage of what is not excluded in the policy. Also, you should closely consider the general exclusions such as consequential losses, nuclear and war risk, pollution, intentional misconduct, and so on.

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Deductibles are usually found in every home insurance policy which must be covered from your pocket before the insurer makes the payment of the claim. Kumar informed that the purpose is to prevent the triggering of small claims. Therefore, you should ensure that your deductible is not high and you should opt for an insurance plan within the context of that deductible.


Care must be taken on any declaration under your home insurance policy concerning the occupancy, other business locations, address, and so on. This will be the basis of the contract and this can annul the contract if there is any form of nondisclosure or misrepresentation.

General conditions

The general conditions of the claim notification, modification risk, required documents, and so on should all be examined. Check for the fulfillment of any warranty required for the term of the policy. Such as when making a claim for robbery, it should be filed by the police and FIR within a certain period. Having a clear understanding of the conditions will be of help in times of distress.

Simple Purchase of services

Almost all insurance providers offer online services which are very easy and hassle-free to purchase. Kumar stated that it is important to put a call through to the customer care of your insurer when confused and examine the service conditions of the insurer. Also an insurance company that will be ready to provide the needed assistance, fulfill its promise with top-notch customer service should be opted for.

Claim settlement report

It is also important to examine the claim settlement report of the insurer. This is the reason the premium is paid and there should be an assurance that the insurer will accordingly regard your claims without delay.

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