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Just bought a new house? Do you want to make it protective from unforeseen calamities? What is a home insurance policy? Why do people insure their houses? An insurance policy is a policy that protects your house from perils such as fire, flood and earthquake. Here is (Home Insurance Reviews on US-Reviews)

In the case of cases as mentioned above, the insurer will be paid the cost to reconstruct the house. The insurance company observes the damage, and the damaged area of the house is the duty of the insurance company to amend it.

You as a homeowner, just estimate the damage and give the report to the company, and the insurance company is responsible for paying the building cost.


However, if you brought a new house and it is damaged by some natural calamity such as an earthquake or flood, or some human-made activities raze it may arise some question from the insurance company.

Or they can send their special team to investigate the damage.

What to want to do with your house? For instance, if you want to insure just your new home or want to combine the insurance policy with the other house owners of the street. Let us answer your queries.

The Cover

Mostly housing societies get the structure of the building insurance. It means they only insure the content of the house, such as jewellery, furniture, and electronics of the house.

And if you do not want the housing societies structure, you can get a cover individually as well.

"The insurance is done considering the built-up area and the cost of reconstruction," says Neelesh Garg, executive director, ICICI Lombard General Insurance. If society insurance is for not satisfying you, there is another option to buy a separate cover-up.

Balaji Cuddapah, senior vice president, commercial lines and risk engineering, Bharti AXA General Insurance said during its speech, "The society not having any insurance or having an inadequate cover will in no way prejudice the claims of an individual flat owner,"

Although an insurer has the power to reject your claim if your house carries any commercial activity.

"Even if the insurance has been taken through an association, each flat owner gets a separate cover. An insurance contract is concluded based on a declaration by a proposer wherein occupancy is also declared.

So, if your declared occupancy has not changed, for example from residence to a shop, the policy will continue, and the claim will not be affected even if your neighbour has breached the contract," says Ajay Bimbhet, MD, Royal Sundaram Alliance Insurance.

Or if a single house of the society has been damaged, the reconstruction cost is payable by the insurance company.

To sum up, the premium rates of insurance are the same. Therefore, shopping for home insurance is not a tough job, but you should keep in mind some points of worth.

Correct property value because some owner makes a mistake in choosing the sum insured equal to the market value of the house.

"On average, one can take a 10-15% increase in the cost of construction (this differs from city to city) every year. One can check construction rates from the municipal corporation or real estate websites. However, arriving at an exact figure is difficult," says Tapan Singhel, CMO, Bajaj Allianz General Insurance.

Sum Up

To wrap up the discussion, if you want to buy a new house and you want to insure your home, you should keep these points mentioned above in mind. This article will help out you and solve your queries.

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