Jack Roberts
India is at high-risk when it comes to natural hazards states a new report by FICCI. The risks of natural calamities are on the rise. The report cites incidences such as Cyclone Vardah in Chennai in 2016. The incident resulted in nearly USD 2.2 billion in losses for the country. The rising climate instability forced researchers to increase risk assessment the next year.
Furthermore, the report also highlighted rising fire incidences in urban India. Nearly 19,000 fire accidents occurred in 2015, according to NCBR. But why does it all matter?
Because properties, much like our health, is indispensable to our survival. Yet, we pay little attention to home insurance policy schemes. Moreover, there is little reason to worry about prices. The competition in the insurance business is at its peak now. You can find great coverage at an affordable price easily.
Below is a guide to choose the best home insurance policy in India.
Types of Cover
When you choose insurance, you will get to know terms like building covers and content cover. Building cover includes protection against potential damages to your property. On the other hand, the content cover protects your valuables like jewellery, furniture, and others. Some schemes in the market offer a lot in one package, like Complete Home Protection. These include protections from human-made intrusions like burglaries, mechanical breakdowns, and natural disasters as well. If you are a homeowner, you should consider opting for an umbrella scheme as you can experience real peace of mind.
Amount
Depending on the value of your home, insurance cover amounts can vary greatly. However, the premium generally is not burdensome. Many loan schemes require you to purchase home insurance before it constitutes as an asset. The value of home insurance can also make you eligible for a higher loan in rare cases.
Banking Institutions vs. NBFIs
Currently, many financial lenders offer comprehensive home insurance schemes. These include conventional banks as well as Non-Banking Financial Institutions. While banks generally secure home insurance at lower premiums, Non-banking Financial Institutions are better at processing, and disburse claims a lot quicker. You can also choose the best of both worlds. Currently, schemes like Muthoot Life-Guard are an ideal balance between both worlds. The scheme is a collaboration between Kotak Bank and Muthoot Fincorp. It promises low-interest rates, quick disbursal, as well as fast processing of applications.
Activation of Cover
As home insurance constitutes significant liabilities for lenders, the activation period of the home insurance can become a tricky clause in the contract. Hence, one should consider opting for home insurance schemes, which provide immediate activation upon purchase of the policy.
So, are you thinking about buying new insurance for your home? Consider visiting the Muthoot Fincorp website for an attractive range of covers, and insurance schemes. As they say, a man’s home is his castle. Don’t forget to buy the best home insurance policy possible!
Spot on with this write-up. Thanks for the advice!