How to Get Your Home Insured in Pakistan?

Highlights of the Post:
Home insurance in Pakistan
Property insurance functions
Property insurance coverage
Process of getting homeowner’s insurance
Home insurance cost

Home insurance in Pakistan is ideal for property owners, property hunters, and individuals who are currently looking for a rental place. Since it acts as a safety net against your treasured possessions, insurance is considered not less than an investment. 

In this blog, we’ve compiled everything you need to know about property insurance in Pakistan including the process, the cost of property insurance, claim period, and how buying home insurance can be beneficial when an unfortunate incident occurs. 

Let’s begin!

What is Home Insurance in Pakistan? 

First things first: home insurance is also known as property insurance, homeowner’s insurance, and house insurance. The terms are used interchangeably for the same thing, so you shouldn’t get confused when you hear someone using them.  

Property insurance is a kind of policy that recovers the loss of your personal belongings that are placed within your home. Similar to vehicle insurance, this one covers residential units and their contents. Homeowners insurance also includes liability coverage and provides a shield against unforeseen situations, accidents, or theft on the property. 

Let’s say that a certain part of your property catches fire or gets damaged by any other disaster [mentioned in your insurance plan], the insurance company will pay for the damage. Not to mention, home insurance also covers home repairs and helps you plan for the future securely. 

On a side note, if you are planning to buy a new home, take a look at our recent post where we have shared the list of banks providing home loans in Pakistan. 

Note: Home insurance holds a lot of similarities with home warranty and mortgage insurance but it is completely different in coverage and functions. 

How Does Home Insurance Work?

Property insurance may also include automobile insurance, homeowners insurance, and renter’s insurance. 

Buying home insurance makes you financially whole and prepared for the loss. When you sign up for property insurance in Pakistan, you agree to pay a certain amount to the company you’ve signed up the contract with. In exchange, the company guarantees to bear the losses that are caused by theft, fire, or any other natural catastrophe. 

Let’s give you an example. You own a house that doesn’t look like it can be damaged. It doesn’t matter if you’re already living there, renting it out, or using it occasionally. Now, your property might seem well protected since you’re paying property taxes. You may ask yourself, “Why do you need home insurance?” 

All of a sudden, it starts raining in your region like it has never before and suddenly a tree falls on your house causing the wall collapse. You weren’t certainly prepared for this loss but you have to cover the entire cost. 

Now imagine, if you had property insurance – the loss would not be one of your worries. The insurance company would have covered this loss and helped you recover from it [in part or whole]. 

Property Insurance Coverage 

Knowing about property insurance coverage is extremely important. The coverage may vary from the package you’re buying but most property insurance coverage includes cash, prize bonds, jewellery, and other contents in your home.

However, this coverage is generally provided for the content that is within the boundaries of your home or in a safety deposit locker. On the other hand, some insurance providers in Pakistan also compensate for the loss of jewellery when it is being transported from home and locker as well. Apart from gold, silver and diamond sets, designer watches and other accessories exceeding a certain limit (around PKR 50,000 in most cases) are also considered jewellery.

How to Get Your House Insured in Pakistan?

The process of getting your home insured in Pakistan is pretty simple once you have figured the list of institutions providing property insurance in your region. It is always better to have a comparison of policies and procedures between different providers, make sure to look at their terms and home insurance prices.

Take special considerations of your need and decide what type of insurance policy would be the best for your property and belongings. Ask as many questions about insurance coverage and premium as you want to since it is a huge commitment.

Generally, insurance plans are available on the website of the providers. It is best to take a thorough look at their plans and get in touch with a representative if you can’t decipher anything. 

Claim Period of Home Insurance 

‘How long a home insurance claim takes?’ It is the most commonly asked question that doesn’t have a definite answer. As compared to a car insurance claim, home insurance claim involves a rather lengthy process that could take a few weeks – or maybe months.

The time period for insurance claims to process depends on three reasons: type of insurance, amount of loss, and on the property that’s being insured. Not to mention, the claim period also depends on the insurance company – some providers might take a while for assessment due to their policies.  

The best practice is to confirm the duration of the process with the company before signing the dotted lines. They might not provide a definitive answer, but you will have a tentative idea.  

Home Insurance Cost 

The installments that you pay to the insurance providers are known as premium. Insurance premiums are highly variable and mostly depend on the coverage plan. Hence, the total amount you pay for your monthly or yearly premium is the ultimate cost of insurance. 

So, this is where we discuss the gist of our post. If you are considering buying home insurance for your new house, make sure to read the entire post. In case we have missed anything, write to us at blog@jagahonline.com. 

Meanwhile, take a look at our recent blogs where we have shared the property registration process in Karachi and property transfer process in Pakistan. 

For more insightful posts on property investment, keep reading JagahOnline Blogs.