The Standard Home Insurance policies are designed to provide you with financial stability in case of affecting your house and property in some kind of natural or man-made damages such as fires, floods, earthquakes, theft and other calamities etc. What makes these house insurance policies more beneficial for policyholders is that it not only covers your home but your personal belongings as well. However, you must be aware of the inclusions and exclusions of your insurance at the time of buying the best home insurance policy. There are four types of coverages that almost all the standard and advanced home insurance policies cover. These are as follows:

Coverage for the Structure of Your House/ Building

Your house insurance policy generally compensates to repair or rebuild your house if any natural or man-made disasters affect your property. However, what you must take care of is the 3 important methodologies of your insurance policy. These methodologies are:

Reinstatement Value Clause (RVC)

Most of the house insurance policies cover the construction cost of your property and that excludes the market value of your land – a point to remember. You must also need to know that many policies cover garages and tool sheds as well. However, the amount of insurance claim can vary between home insurance policies. You must not forget to buy sufficient coverage to rebuild your house in case of any damages hit your property.

Agreed Value Clause (AVC)

Agreed value clause defines the terms and conditions of the policies in which the insurance company would compensate the policyholder with the agreed amount without any depreciation or appreciation in the propertyincase of hitting by any disasters.As per the Agreed Value Clause, both the cost of construction and the market value of the land is included.

Indemnity ValueClause (IVC)

Another methodology that offers coverage to your house  is called the Indemnity Value. As per this clause, the amount of your claim upon affecting by any damages is calculated based on the current market value of your property. The construction cost and depreciated value of your house is also taken into the consideration while calculating the policy coverage.

Coverage for Your Personal Possessions

Your home insurance policy not only covers your property but also covers your personal belongings that include your expensive jewellery, home appliances, clothes, furniture,, TV, DVD player, music system, arts, collectables or other domestic appliances.

Liability Cover Protection

Not many people know that your home insurance policy also protects you against the lawsuits for damaging your neighbours’ property. Under the terms of your liability, your policy compensates for the damages of your neighbours; property caused by you, your family members or even your pets.

Over to you!

Your home insurance policy covers all the above-mentioned belongings along with your house property. Hence, it is quite important that you must have in-depth knowledge about your home insurance policy and plans. Since the market is full of home insurance companies, you must compare multiple home insurance policies before buying the best home insurance policy in India.