Not making a well-informed policy purchase can sometimes land you into a troublesome situation, which can turn out to be very costly on your pocket. For instance, you go on a three month long international vacation to visit your son, and in your absence a devastating storm ruins your house. To your shock, your insurer denies to cover the damage as you’ve forgotten to inform him about your travel plans!
If you would have made an informed policy purchase you might have been saved from such an unfortunate experience. Having a clear understanding of the policy terms and conditions is a must to save you from getting into such annoying Home Insurance traps.
To save you from such situations let’s have a look upon the 10 Home Insurance traps to avoid:
Trap No. 1: Accidental damage
As the name implies, accidental damage covers the damage caused by negligence. Accidental damage coverage is not offered by default with a Home Insurance policy. Rather it has to be purchased through payment of additional premium.
Trap No. 2: Tenants
If you rent out a part of your house, a normal Home Insurance may not cover you anymore. You will need to get in touch with your insurer and get the suitable insurance in order to continue availing the policy benefits.
Trap No. 3: Doing business at home
If you run a business at home you must inform your insurer about it, otherwise you may land into trouble while making an insurance claim. Your insurer will suggest you the type of insurance you need depending on your business.
Trap No. 4: Locks, windows and alarms
You will have to give proper description about the safety features at your home, like locks, burglar alarms, etc. Having a burglars alarm can lower your premium. Also, remember not to give any incorrect information regarding the safety features, as it could result in a claim being denied.
Trap No. 5: Remember not to leave your house open
In case a theft takes place on account of you having forgotten to lock the house or turn on the burglar alarm, there is a possibility of your claim being rejected. Remember to lock your house well and turn on the burglar alarm whenever you leave your house.
Trap No. 6: Empty house
You may not be eligible for an insurance policy cover if the house is left empty for a long period of time and a mishap takes place. Check with your insurer to know the conditions that apply to the policy when you leave your home empty and take precautions accordingly.
Trap No. 7: Flood risk
If your house is located in an area that is prone to floods then you must check with your insurer about the cover. Home insurance premiums are very high for flood-prone areas, as there is more risk involved. A normal policy may not cover such risks by default and it is best to get in touch with insurers to find out.
Trap No. 8: High value and high risk items
High value items like jewellery, watches, etc., and high risk items like laptops, TV, computers, etc. need to be specified to your insurer while taking a policy. Expensive items may increase your premium, and it is better to insure such items separately.
Trap No. 9: Items outside your house
If you take some items like jewellery, watches, laptops, out of your house, the policy cover ceases to apply. You can opt for an additional cover to protect you in this case. Make sure that you check how your home insurance covers such circumstances.
Trap No. 10: Under-insurance
Under-insuring your house can have devastating after-effects as your claims may not be fully covered. Don’t underestimate the value of your house and contents, as it can lead into a lower claim amount, which might not suffice a probable damage.
Any insurance policy will have its own terms and conditions. It is always better to check the policy inclusions and exclusions beforehand to understand the coverage your home requires and then make a decision. Always keep your home secure and in turn, your peace of mind intact.
We are India's No.1 - Most Trusted Financial Services Brand, according to the Brand Trusted Report, 2017 & 2016 consecutively. We are also the largest Gold Financing Company in India in terms of loan portfolio, according to the 2015 update to the IMaCS Research & Analytics Industry Reports, Gold Loans Market in India, 2015 ("IMaCS Industry Report, (2015 Update)"). We provide personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time-frame, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.
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