Things you should know about home insurance
Before proceeding further, you should comprehend the terms related to a home insurance policy.
- Ownership of property- To buy a house/property insurance, one should have a stake in the property i.e. it should be in possession of his/her own.
- Types of Home/Property Insurance- Generally, there are two types of home/property insurances;
First is the “Standard fireplace and Allied Perils Policy”. This covers mishaps the property is exposed to such as riots, fire, flood, and storms. The second type is “Burglary and House Breaking Insurance Policy”. This mostly provides protection against theft or burglary.
- How to fix total Insured value for home/property or assets you own?- In case you underinsure your home, you are at a greater risk of suffering from a great loss at the time of causality.
Hence, opting for suitable valued insurance becomes highly important. There are two ways to identify it, namely reinstatement value and market value technique