How Real Estate Insurance Companies Influence Our Lives
Nowadays, for everything, from a small pencil sharpener to huge houses and buildings, safety is very essential. It can be seen in day to day life. One among that is insurance. Insurance started for just ‘saving tax’ purpose. But the awareness increased and soon everyone realized the importance of insurance – life coverage. After life coverage, this covered property. When this field started growing, many companies entered into this and Government has made insurance for properties as compulsory.
Terms, conditions and Benefits of Insurance
Any real estate insurance company, in general offer many benefits to the ultimate consumer. The Company meticulously works on its terms and has tie ups with the Housing Financing Companies and Banks who lend loans to the consumers. They offer very low premium and mostly one time premium to the consumers. As the insurance has become compulsory, the ultimate customer is planning for the one time insurance premium along with their housing budget. Lending Institutions have readymade calculating charts provided by the Insurance Companies. With the help of this chart, banks calculate the insurance premium based on the loan amount and tenure of the loan. As the calculation arrives to a lump sum to be paid one time, there is no burden to pay every year like other life insurance policies. Moreover, customers also feel that this is the right way of protecting their property.
Real estate insurance covers fire accident, damage by external force, etc. However, there is a caution, which is that the building should be less than 30 years old; only then the terms and conditions of the policy becomes applicable. There is also a sub clause available, which states that jewelry and valuables can also be added at a later stage by giving separate declaration. The Insurance Company then visits the property and takes the valuables as on the date and recalculates the premium. If this is not possible, then the owner of the flat can go and take a new policy declaring his or her jewelry and other valuables in the house.
There are huge benefits to be gained from such insurance policies. If the customer dies before closing the home loans, then, the bank which has previously disbursed the home loan will get the balance loan amount from the insurance company. After getting the money from the Insurance Company, bank will release the original housing documents to the customer’s family. This is the real benefit for the family and the family will retain the property and thus need not suffer. Hence, it is essential for the customer to pay the EMI charges correctly as per the norms agreed, so that settlement from the insurance company will be easier and the family can avoid many unwanted details. In this world, crisis might happen in any form, while travelling, heart attack, etc. Hence, protection of the family is critical through such beneficial real estate insurance policies. As the competition has increased by many folds, insurance companies carefully calculate their workings and present to the customers. Thus, it is very clear as to how much the real estate insurance companies play a role in everybody’s life today!