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Tips for Choosing Home Insurance Products

In House Magazine
06 Sep 2019
 Tips for Choosing Home Insurance Products

Just like other insurance products, choosing home insurance requires careful consideration.

Currently, there are many home insurance products available in Indonesia. Although many companies offer low premiums, it's important to be more cautious in making your choice.

  1. Track Record of the Company To avoid any pitfalls, take the time to check the company's track record. There are various ways to gather information about the company, such as through friends who have used their insurance services or through online testimonials.

The simplest way is to check the establishment date and corporate legality. Established companies that have been around for a long time are usually more trustworthy. Additionally, ensure that the insurance company is licensed by the Financial Services Authority (OJK).

  1. Understand the Policy Document Reading the policy document is something that policyholders often neglect. However, the policy contains important points regarding your rights and obligations as the insured.

Take the time to thoroughly review each section of the policy. The most crucial part is usually the summary, which consists of 3 to 5 pages.

The summary includes personal data of the insured, complete policyholder information, the coverage amount, the scope of coverage, and the policy period. It also clearly states any additional fees and the premium.

  1. Clear Claims Process While no one hopes for any risks to occur to their home, it's essential to understand the claims process. A reputable insurance company will have a clear and structured claims procedure.

Typically, claims are made through a claim application form. If you meet the requirements, your form will be approved. Otherwise, if it doesn't meet the criteria, you may need to resubmit the application.

  1. Make Comparisons When selecting home insurance, ensure that the coverage amount you receive is proportionate to the premium. Avoid situations where the premium is high, but the coverage amount is limited. Why is this important?

Home insurance aims to repair or rebuild your home. If the received amount is insufficient, the repair process may be hindered or not adequately completed.

  1. Choose a Product Based on Your Needs Consider the type of home insurance that suits your needs. Different companies offer different types of products. Some companies only provide protection against natural disasters, while others may include coverage for fire or damage due to criminal acts.

In addition to the product features, pay attention to the compensation offered. Check whether the compensation is a lump sum or provided in installments. If it's in installments, find out the amount for each disbursement.

Remember to carefully evaluate each factor and consider your specific requirements before making a decision on which home insurance product to choose.

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