Property insurance or home insurance is an insurance policy that offers you some degree of loss protection from damages caused to your home on account of various factors like fire, burglary, earthquakes and so on.

In taking out any kind of insurance policy, it is always important to take the time and make the effort to read the entire policy document so that you are fully informed of what kind of protection you are paying your annual premiums for.

Here are some important checkpoints when you decide to insure your property.

• When you take out a property insurance policy, be advised that you can only insure a property or home that is owned by you. In the event that you have to file a claim, the insurance company will ask you for complete details of ownership, mortgage details if any, the status of repayment of loans and so on.
• When you fix the base sum insured in discussing with your insurance agent, understand how the total premiums are calculated.

Sum insured may be calculated based on

a) the current market value of the property to be insured after taking into account age of the property and depreciation figures, or
b) the reinstatement value of the property in the event that some kind of loss is incurred on the basis of which the insurance claim is reimbursed.

Remember to discuss clearly with your agent the exact size of the property that is insured and what kinds of loss or damage are covered under your specific policy. In the event that you wish to opt for an insurance for any valuables that are outside the policy guidelines, you can take an add on to your present policy.

In declaring the value of the property, it is very important that you state the facts as they are. Any claim that is made will be thoroughly vetted by investigators. Hence, if there are discrepancies in the stated property size or value or the nature of other belongings insured, it may take much longer to process your claim in the event of any dispute.