These insurance products will help you reduce your liability from natural calamities
Structure coverMost housing societies insure their building so as a flat owner you don’t need to buy structure cover separately. So before buying home insurance, check if your society has a structure cover. Also, check if the policy bought by your housing society covers reconstruction cost and not only the depreciated value of the building. In case your builder has a structure cover that includes reconstruction cost, then you can go for cover for contents inside the flat. Worth mentioning here is that most societies settle for depreciated building value to keep premiums low.
Plan for contents
Typically insurers provide two types of cover for contents inside a flat-standard and detailed. Standard plans assume a standard set of assets while in case of detailed cover you need to give a list of every asset inside your house and take cover against them. By giving full details at the time of taking the policy, claim settlement becomes smoother. Standard plans do not cover costs related to repairs.
Go for replacement costs for contents
While buying cover for household assets make sure you opt for replacement cost, instead of depreciated value. Although this will cost you more it is advisable to buy such cover, say experts. in case of a claim, this cover will be helpful. For example, if a refrigerator bought three years ago is damaged due to flood and the repair cost is Rs 9,000, then the insurer will not pay you the entire amount if you do not opt for replacement cost.