My friend is planning to buy a property by taking a home loan. He intends to buy it in another 3 months. But the property will come to him only after 8 months since it is under construction. So when is the ideal time to get home insurance? At the time of down payment? Or when he gets the property in hand?
Home is the biggest investment for most of the people. Hence it is extremely important for home buyers to take insurance. Home insurance is taken to protect your home structure and content. You can take either of them or both. This cover is against natural disaster or man-made such as burglary, vandalism etc.
You have to look carefully to see what is covered in home insurance. The definition for man-made and natural disaster has many variants. The sum assured is reconstruction cost of the property.
Usually, when the house or flat is under construction, the builder takes the insurance till it completes. Once the building is complete, the real owner should take home insurance. In your case, you have to really find out if this is the case and decide accordingly.
Someone suggested me to opt for a higher voluntary deductible plan for home insurance. Is it worth the cost?
Voluntary deductible home insurance simple means that the individual agrees to pay a portion of the damages at the time of the claim. While this may seem like burning a hole in your pocket, voluntary deductible plans can substantially reduce your monthly premiums. Adequate protection cover and low monthly premium expenses can co exist using voluntary deductible plans.
The best time to buy Home Insurance is when you have the property in your hands. This means that it is best to go for a Home Insurance plan after you get possession of the property. Most insurance firms will insist that the house be complete in order for the policy to come into effect.
You must remember that Home Insurance is an expensive safety net for your home and it doesn’t cover all types of damage. Various types of Home Insurance policies provide cover for different types of damage. It is important to do your homework thoroughly before choosing a Home Insurance plan. Select a plan that is suitable, considering your lifestyle and geographic location.
You need to compare between plans to choose the best one. The premium that you pay on a Home Insurance plan depends on several factors. These include the size of the property, the age of the property, the cost of construction, the cost of electrical appliances, furniture, and valuables. If your home has burglar alarms or smoke detectors installed, many insurance providers will give you a good discount on the insurance premium. What’s more, your home is safer. Remember to choose an insurance policy that gives you cover for any disasters that your home may actually be at risk for. For example, if you are in a flood or earthquake prone area, make sure that your policy specifically covers damage from events like these.
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