There is no doubt that your home is one of the most valuable investments you make in your lifetime. And, hence you need to safeguard your home from various risks and hazards like fire or a natural calamity.
Disasters can knock at the door at any time without any prior notice, and that’s why it is more critical to secure your house against such risks even when you can’t see it approaching. A basic home insurance policy covers your home as well as its contents. Buying home insurance isn’t made mandatory by law but safeguarding your significant investment is vital in case there is a mishap.
In India, many insurance providers offer different types of home insurance, and choosing the best policy can be challenging, especially if you no prior experience. If you are a first-time insurance buyer, here are a few points that you should consider when looking for the best home insurance quote.
- Understand the purpose of home insurance
It is surprising, but very few people have a clear understanding of home insurance. To get the best coverage, you must be aware of the terms and conditions of the policy.
- Assess your requirements
While buying a home insurance policy, it is vital to know your needs well. Knowing how much coverage you need to protect your valuable assets will help you choose the policy with a suitable sum assured. Today, you can easily get all the information about different policies online on the official website of the insurance provider. You can also speak to an agent to get a clear idea and make a better decision.
- Search through different options
Once you assess your needs of buying a home insurance policy, the next step is to start searching for the suitable cover. It is advisable to look for a reputed insurance company and then shortlist the best plans and compare the offers based on the cover, deductibles, limits, exclusions and cost.
- The financial strength of the insurance provider
It is one of the most important steps to check the insurance provider’s financial strength as you will be dependent on them to compensate for your losses. If the insurer suffers a financial problem, then your claim will also get affected. Thus, you need to make sure that you research adequately on the financial background of the insurer to be sure that your insurance claim will be settled smoothly.
- Check claim settlement ratio (CSR)
The CSR denotes the number of claims successfully settled by the company against the number of claim applications received in a year. It is better to look for a company that has a high CSR so that you have better chances of getting your claim approved.
- Extend policy cover by choosing riders
A standard insurance cover will cover you against basic risks and hazards that your house may get exposed to. But beyond these risks, there could be other hazards that can cause damage to your property. Hence choose riders. Riders are add-ons to a standard policy that help to increase the coverage at an extra cost.
The key to buying home insurance policy at the best price is to understand how home insurance works, and choosing a policy based on your requirements and do adequate homework on comparing home insurance quote and insurers.