The house insurance policy is of two kinds – fire insurance policy and householder’s package policy.
The Fire Insurance Policy is applicable when the building is damaged by natural dangers like fire, storms, earthquake and floods. This policy is relatively cheap as you can buy it for a minimum of one year to a maximum of ten years or more.
The Householder’s Policy is costlier and more comprehensive in its coverage for example burglary or breakdown of the house. There are three more covers like personal accident, public liability and baggage insurance.
Mixing the insurance
Both the fire insurance and content insurance should be applied for so that in case of damage, the cost of the household items could be recovered. You get around 40% discounts if the term for the fire insurance is more than one year.
Well, if the other insurance are clubbed with the fire insurance for your building, then there are other great advantages. The building may catch fire, but then it is very rare. But then it is more likely to get stolen. Hence it also covers you from things being stolen from the building.
One should keep in mind that the insurance of the building is based on the building cost which is very less if compared to the total value of the building. Therefore one should not insure the building with the total value.
The other important aspect is that the building cost should always be reviewed. At the time of the insurance, the building cost is different. But the over the years, the cost of the same have definitely gone up.
If all the house holders’ policy is obtained, then one is liable to get around 15 to 20 percentage discount.
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