Whether you own a house, are in the process of buying one or are currently renting a place, you need to consider getting home insurance to not only protect your property but also your belongings.
No matter how many precautions you take, your house still remains vulnerable to fire, natural disasters (such as earthquakes, floods and severe storms) and robbery among other threats. So, unless you want to spend your precious savings on repairing your home or replacing lost belongings, you might want to look into buying homeowner’s insurance.
Since there are a number of insurance companies operating in Pakistan, you might get confused between different packages offered by each provider. This is where this guide comes in. Here’s all you need to know about how to get your house insured, the cost of property insurance and what these plans entail and how buying home insurance may benefit you in case of an unfortunate incident.
What Is Home Insurance?
To start off, home insurance is also referred to as homeowner’s insurance, house insurance and property insurance, so you must not get confused between the names. Just like other types of insurance, this one provides coverage for private homes and their contents.
In an event of burglary, fire or any other disaster covered in your plan, your insurance company will be liable to compensate you in accordance with your chosen plan. Not only that but home insurance can also help you repair your home, saving you a lot of money in the long run. However, you need to keep in mind the compensation you may receive in a claim will vary with each policy since every provider sets different limits.
What Does It Cover?
If you’re planning on getting house insurance, you must know about the coverage it provides. Granted almost all insurance companies offer different coverage plans that vary with the premium, but most home insurance plans provide cover for cash, jewellery home structure and home contents.
In most cases, cash includes both currency and prize bonds. Meanwhile, jewellery is generally covered when it’s at home or in a safety deposit locker. Some providers also offer a certain percentage of house insurance coverage for jewellery that’s either stolen or goes missing during the transit between home and locker as well. Apart from gold, silver and diamond sets, designer watches and other accessories exceeding a certain limit (around PKR 50,000 in most cases) are also considered jewellery.
As for home contents, the list usually includes electronic appliances such as TV or home theatre system, refrigerators, air conditioners, cameras, smartphones, laptops and computers. Other items such as furniture, carpets, upholstery, dinnerware, crockery and clothes among other things are also covered under home insurance.
Furthermore, renters can also get home insurance. However, their coverage won’t include compensation for any structural damage.
It’s important to mention each service provider may have their own set of rules and regulations regarding coverage and compensation.
How Does Home Insurance Work?
Home insurance acts as a safety net for your property.
Due to the rising cost of construction material and other consumer goods, most homeowners may have a hard time rebuilding everything from scratch. However, if your home is insured, all you need to do is file a claim and the insurance company will take care of the rest.
In the event a homeowner suffers a loss, they should contact their insurance provider as soon as possible so they can assess the situation and determine your compensation. The claim process may take some time depending on the premium and coverage, but it is still extremely important as it can help you get back on your feet again.
How To Get House Insurance
The process of buying house insurance isn’t as complicated as some people believe it to be
Once you decide on the type of policy you want and are satisfied with its coverage and premium, don’t forget to take a look at customer reviews. Doing a little company research might also be beneficial. If you have trouble deciphering anything in the plan, you can leave a query on the company’s website or get in touch with a representative.
Moreover, home insurance can only be bought on the homeowner’s name. Therefore, you will need to provide your personal information and property details, such as ownership deed
How long do home insurance claims take?
There isn’t a definitive answer to this question. If you’re getting a car insured, for instance, it could happen in a matter of days. On the other hand, if it’s a house, it could take weeks. In worse cases, it could take months. The time period required to process these claims, understandably, depends on the home that’s being insured and the damage the insurance money is going to cover. It also depends on your insurance providers. Some companies take time while assessing the extent of the damage. Any sort of discrepancy can delay the process.
It’s best to confirm the duration of the process with your insurance providers right off the bat. Again, it wouldn’t be definitive, but you’d have a fair idea of how much hassle it could entail.
How Much Does It Cost?
There’s no fixed number when it comes to the cost of home insurance. As mentioned above, most insurance companies offer more than one coverage plans. So, the amount you pay for your premiums will largely determine the value home insurance coverage for your belongings.
The premium can also be paid on an annual basis.
Meanwhile, if you are considering getting home insurance for your new house, make sure to take a look and avoid some common mistakes first-time