Property damage and potential legal liability for any injuries or property damage you, your family, or your pets may cause are both covered by homeowner’s insurance.
So, even though it covers a lot of ground, there are some outliers. For instance, plans rarely provide coverage for problems caused by poor property maintenance, earthquakes, or flooding.
Understanding the terminologies used in home insurance is crucial for making an educated choice and can be quite helpful when filing a claim. However, given your busy schedule, we don’t want you to waste time hunting for resources to help us explain these words to you. As a result, we’ve put up a thorough list in this post. You only need to read this article once to gain a solid understanding of the terms used in your house insurance policy.
Home insurance coverage is an investment that can protect your funds in the event that your home and/or its contents are destroyed or damaged as a result of unforeseen, unnatural occurrences. An example would be burglary insurance. Learn more about the coverages offered in the house insurance policy below and use the Bajaj Allianz home insurance calculator to calculate the premium.
In addition to these coverages, you may choose from a number of add-on covers to extend the scope of your base plan’s coverage.
Here is a comprehensive glossary of terminology from house insurance policies that will help you finally comprehend your policy:
- Sum insured
The sum insured (SI), which represents the insurer’s maximum responsibility, is the dollar amount listed next to each item in your insurance paperwork. Simply put, it is the highest sum your insurer will pay you (should you file a claim) in the event that your home and/or its contents are lost or damaged as a result of tragic events like theft and burglaries or natural disasters like floods, fire, etc. *
- Home insurance premium
The amount you, the insured, must pay to your insurer in exchange for the financial security it offers to your home and/or its contents is known as the “home insurance premium.” The premium amount is determined by the following criteria and must be paid annually:
- Policy period
The word “policy period” refers to the time frame beginning on the policy end date, as indicated in your policy document, and ending at midnight on the policy end date.
- Loss settlement
There are four ways your insurer can resolve a loss-related home insurance claim:
Indemnity basis: With this kind of loss settlement, you are paid back the claim amount less the cost of wear and tear on your products or property.
Reinstatement basis: In the case of this kind of loss settlement option, your insurer will exchange your damaged (insured) goods with new ones that are functionally equivalent to the ones that were damaged.
Based on the value that you and your insurer agreed upon when you bought the policy, your insurer will reimburse you for any losses in this sort of loss settlement. This compensation will not take into account the current market worth of your home and/or its contents, which is a crucial factor to keep in mind. You can always utilise a home insurance calculator to gain more insight into the appropriate level of coverage for your needs and those of your family.
When an item is broken beyond repair under this loss settlement option, your insurer will pay for the full cost of replacing it.
The confusing phrases used in your insurance policy for the home should now be easier to understand after this read, we hope. By buying or renewing your house insurance coverage online, you can now save a tonne of time. ##
* Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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.