With the growing trend of online shopping, insurance providers have started offering their policies to customers to shop online. Buying an insurance policy online is quick, easy, and hassle-free, so you do not have to worry about going to an insurance company or scheduling appointments with agents or brokers. Despite all the benefits of buying insurance online, you still need to know what to buy and how to buy it. An excellent example of this is home insurance.
A house insurance plan protects your property from unforeseen risks by providing financial coverage against damage of various kinds. It is essential to have a home insurance policy for those who want their home to be protected from all sorts of injuries that can hamper the use of the property. To help you understand this, here is a list of standard terms that are used in the policy:
- Policy refers to the contract between the insurance company and the insured.
- Coverage to the benefits given to the insured by the insurance company.
- Premium refers to the amount of money you have to pay in exchange for coverage. The premium depends on your specific coverage requirements. It would help if you used the home insurance calculator to find the right premium.
- Actual total loss is where the insured “building” was accidentally destroyed or damaged.
- The building is a flat or apartment used for residential purposes, including sanitary ware/fittings, piping, and plumbing, electrical fittings, flat / apartment equivalent components) in a multi-story building.
- Contents refer to objects that are stored inside the house. It includes:
- Pedal bicycles, electrical and electronic equipment, portable equipment/items, clothing stored for less than 10 years in the “building” of the insured person
- Fixed furniture, fixtures, furniture, including retrofitted precious sanitary and electrical fittings.
- Pottery, cutlery, steel utensils, and other household items are stored in the insured building.
- The insured person and their family members, but not jewelry and valuables, artifacts, paintings, curiosities.
- Bonds, checks, documents, cash, currency notes and coins, credit and debit cards.
- Deductible means the amount borne by the insured in respect of the claim made for a policy. The company is responsible for making all the rest of the payments under the policy at the claim time.
- Family means spouse, children, parents, in-laws, grandparents, siblings, and other immediate relatives of the person (insured) living with him on the premises.
- Insured means the person/organization/organization specified in the policy.
- Claim refers to the application that the insured person submits in the case of any damage to the building and any of its contents.
- Sum assured is the maximum amount of money set aside to be given in the case of a valid claim.
* Standard T&C Apply
You will receive a policy document whenever you inquire about home insurance quotes. The initial days of buying an insurance policy are a free-look period. During this period, you must go through all the terms and conditions of the procedure and check if they are suited to your preferences. However, these documents are filled with specific terminologies. For anyone that does not have experience buying insurance, these terminologies can be highly confusing. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.