What insurance do I need when buying a house?

Hello. If you’re wondering what insurance do I need when buying a house, it's home insurance. I bought a 2 BHK home last year and the first thing I did was to buy a home insurance policy. For selecting the policy, you need to assess certain things and then make a call. The first is the location of your house. How prone is your house to be struck by a natural calamity? I’ll talk about more such things you must analyse before choosing a policy below.

What to Consider While Buying a Home Insurance Policy?

1. Location: Consider the possibility of a natural calamity hitting your location. If the area you live in isn’t prone, you can opt for the basic plan instead of the ones that offer extra coverage. However, if the case is the opposite, you should consider buying policies that provide added coverage.

2. Sum Insured: Next, check the sum insured for the policy. Consider your house’s built-up area and the total construction cost. This will give you the reinstatement value. You should eye at a figure that can cover the rebuilding cost of your home.

3. Needs: Analyse the needs you have with the house insurance. There would be some exclusions on what the policy covers, so choose the policy accordingly.

4. Not Just Premium: While comparing policies, don’t just look at the premium amount. You need to compare the policy coverage and see which one works the best for your home based on its location and other factors I shared.

This is all from my end. I hope you now know when buying a house what insurance do I need? 

As a property owner, you should understand the importance of house insurance. It not only helps to protect your home but also your family. Last year, home insurance helped me pay for the damage caused to furniture in my home due to fire. It is a type of property insurance that offers coverage to the policyholder from the unforeseen damage or loss caused to the property structure along with its content.

A house insurance policy contains 2 basic features coverage for the building as well as its content, such as utensils, clothes, durables, jewelry, electronics, furniture, etc.

If you purchase a policy that covers only the infrastructure then it’ll pay for the building structure’s reconstruction in case of destruction. Damages caused by an explosion, Aircraft Damage, fire, and natural calamities are recompensed.

And if you purchase coverage for personal belongings in your home then the insurance company will pay for the damage or loss caused to assets/items in your home due to fire, burglary, theft, etc.

If you’re looking to purchase one it makes sense to purchase it when you purchase the property. As some insurance companies may not provide insurance coverage if the property is older than 30 years.

All this is what homeowners policies provide coverage for.

To find out what and how much insurance your house needs, involves several steps. To start with, you have to assess the estimated cost of rebuilding your home, followed by estimating the cost of your personal possessions in your home. Other factors to consider while assessing the amount of insurance required is the cost of your assets present in the house, the cost of liability to others, and the cost of any additional/alternate living expenses (rent, etc.) that you might have to incur if your home is rendered uninhabitable due to ongoing repairs or damage.

You should compare the home insurance policies of different insurance companies and buy the one that suits your needs the most.

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I hope I cleared all your doubts regarding what insurance do I need when buying a house.