Home Finance Here is Why You Need to Review Your Home Insurance Plans

Here is Why You Need to Review Your Home Insurance Plans

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Home insurance is one of the most underrated insurance covers that you can buy. Be it an owned accommodation or a rented space, an insurance plan is available. Besides that, a home insurance plan not only protects against structural damages, but also the contents that are insured when buying one. Fires and natural disasters like earthquakes that ravage the structures can be insured against with a home cover. Hence, it is an essential purchase for all types of accommodations.

Home insurance plans can be customised to fit your requirements. So, you need not worry about getting your valuable content insured. All the artifacts, jewellery or any other appliances that need insurance coverage can be availed with a home insurance policy that has content insurance. When selecting add-on coverage, make sure it checks all the right boxes.

Why home insurance coverage needs to be reviewed periodically?

There is no legal requirement that requires you to buy a home insurance plan, however, lenders like banks and other financial institutions lay it down in their agreements. As most homebuyers opt for borrowings to finance their purchase, a home insurance is required.

Most home insurance policies that are mandatory to be bought with a home loan cover only the structure. This is the most basic coverage, but for majority times, may not be sufficient. Damages to the home not only occur to the structure, but even more to the contents within. Moreover, any consequential losses to third parties are also not a part of its coverage and hence, must be added on. Ensuring appropriate disclosure when buying as well as renewing will help to get the right set of items covered in a home insurance policy.

Further, it is recommended to check the breakdown of your insurance coverage. This helps you know what is exactly covered by the policy in the event of a damage or disaster. In addition, the maximum age of the equipment that is covered must also be checked. Doing so, will help you have a complete idea of the policy coverage. * Standard T&C Apply

To know about all the above policy details and stay on top of it, you must review the coverage periodically at each expiry.

Checklist for a home insurance coverage

Damages to your house will result often in major repairs and a home insurance cover in its base coverage provides protection against damages to the structure of the house. However, various other areas that need coverage and must be considered when buying are as follows:

Coverage for additional structure

Other than the main structure of the house, any other ancillary structure like garage, backyard, fence, swimming pool or driveway require insurance. The home is not the only thing that gets affected. *

Protection for property or personal possessions

Content insurance in a home insurance cover helps to secure valuables like artifacts, paintings, jewellery, and even appliances. Damages to these contents can also result in a financial loss and thus must be insured. *

Alternate accommodation

When buying a home cover, make sure it includes facility for an alternate accommodation in case the damage is critical that makes the structure inhabitable. This will help you reimburse the cost of seeking substitute place to stay. *

* Standard T&C Apply

While these facilities increase the home insurance quotes, it is essential to avail them. A tool like home insurance calculator can come handy to seek the impact of additional coverage on the premiums. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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