Get The Right Home Insurance Policy For Your Condo
Are you thinking about buying a home? Then you should think long and hard about getting one home insurance. You must be wondering what types of home insurance are available and what type(s) you need. Here are some things that you must know about home insurance before you decide to get one.
A home insurance policy offers protection against perils. A peril is something that could cause damage or injury to a person. So when you buy a home insurance, you are protecting yourself from the perils that may occur to you or your loved ones. The coverage offered by a home insurance policies takes care of all your expenses in case of such unfortunate events:
Natural calamities like floods, earthquakes, fire and earthquake can cause damage to the house. Sometimes the damage caused can be severe and sometimes the damage can be minor. Your home insurance will take care of the expenses in both cases: the severe damage incurred because of natural calamities and the minor damage caused by burglary. For natural calamities like floods and earthquakes, your house insurance policy will cover the expenses for repairing the house and also the cost of hiring a contractor for cleaning the house.
Two kinds of insurance plans are available – namely, permanent and non-permanent. Permanent coverage lasts only till the death of the insured person and the policy tenure cannot extend beyond this period. These plans offer more comprehensive coverage than the ordinary homeowner policies. On the other hand, non-permanent coverage comes with a flexible policy tenure and the premium rates and benefits vary depending on the prevailing circumstances. These plans can be locked for a fixed duration.
The two basic types of homeowner policies are – single dwelling and multiple dwelling cover. A single dwelling policy is a kind of homeowner insurance that covers a single house only. It does not cover any other properties or personal belongings of the insured. This plan can be useful if you want to safeguard all your valuable property items in one place.
Multi-dwelling coverage is another form of homeowner home insurance policies. This plan provides coverage for multiple dwellings or residential properties of an individual. In case of a multiple dwelling house plan, the insured can insure his individual properties in addition to the house he uses as his residence.
If you have a mortgage or own real estate property, the mortgage lender may require you to make a separate claim for it. In such cases, the lender will not provide any coverage to the borrower. Similarly, the lender will not cover the cost involved in cleaning the property if there is a burglary.
Homeowners have the option of choosing from two different types of homeowner home insurance policies – common and specialty property. A common home insurance policy covers general liability, which includes injuries and damages incurred by others on your property. However, common coverage does not provide you with any legal protection. In case of a specialty property insurance plan, the insurer protects the owner’s legal rights like dwelling expenses in case of death or permanent disability of the owner.
In case of third party damage, the property insurance provider pays for the repair of the damage caused to the third party’s property. It also pays for the replacement cost of the damaged object. As the insurer, you have the option to choose the method for recovery of the claim. The choice of method will depend on the type of damage incurred.
Most often, the insured pays the amount claimed upfront and then makes the claim to the insurance provider. However, you can also make a claim in a monthly installment. When making a claim, all the necessary details have to be given to the insurance company. In order to make the process easier, you can use the online mechanism provided by the insurance company. You can fill up an online form and after submitting it, the claim would be immediately transferred to the concerned insurance company.
There are different kinds of homeowner’s insurance policy available in the market. To get the best coverage for your condo, you should go for the one that provides maximum coverage. One of the coverage provided is the liability coverage wherein the insured is covered in the event that a third party is harmed while staying in your condo unit. There is also the coverage of bodily injury. Under this coverage, the insured person is liable to pay for any bodily injury or damages to property caused by the other party. Personal effects coverage is also available in certain packages.
The most important thing is to choose the right property insurance policy that provides cover for the right type of claims. In case of a fire, the home insurance policy provides cover for the entire loss incurred due to the fire. In the case of a flood, the flood insurance provides coverage for the water damages caused by the overflowing water or other overflow by the property owner. It provides coverage for the cost of rebuilding the infrastructure of the damaged condo. A good property coverage helps you avoid incurring heavy costs due to legal entanglements or any other such unfortunate situations.