Why Should You Review Your Home Insurance Cover Every Year?

Most of us underestimate a home insurance policy, but it is one of the important insurance policies that not only homeowners but the renters can have. This is because it also offers coverage for home contents and as a tenant, you can cover the valuable items kept at your home. Home insurance provides coverage against loss and damages caused because of fire and various other natural disasters. If you opt for an add-on cover along with your basic home insurance plan, then you will be able to get wider coverage as per your needs. According to experts, there are many things that you must review in your home insurance policy including the add-on cover.

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Some experts say that add-on covers or rider benefits help you to get coverage for additional areas where your home insurance plan is unable to work. Some add-ons are a must to have as certain things that are not covered in a basic home insurance plan. However, before opting for an add-on cover, make sure it is as per your requirements and circumstances and it must add value to your home insurance coverage.

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Why Should You Review Your Home Insurance Policy Every Year?

Even though it is not legally required to have a home insurance plan but experts say that it is a good decision to have a home insurance policy. This is because it provides coverage against damage or loss to your home at an affordable price.

We all must know that a home insurance policy that is sold along with a home loan provides coverage for the structure of the home only. It does not provide coverage for home contents. So, essentially it is a fire insurance policy and not a comprehensive home insurance plan. Appropriate disclosure of all the contents of the home and their correct value is essential otherwise at the time of claim, the insurance will pay far lesser than the actual price.

In addition to this, it is suggested to check whether the breakdown insurance is included in your home insurance policy or not. If yes, then you must check the maximum age of the equipment that is covered in it. Once you have taken it for a year, you can claim the benefits throughout the year and you do not have to pay any extra charges until the policy expires.

So, this is the reason, a yearly review of your home insurance plan is recommended.

What Are the Things to Consider While Reviewing Your Home Insurance Plan?

You must evaluate all future issues or risks related to your home and then you can decide the coverage for it. From rains in Maharashtra, Karnataka, and Gujrat to floods in Bihar and cyclones in the Eastern Ghats of India, the year 2020 has seen a series of natural calamities.

A comprehensive home insurance plan can work as a help especially in case of natural disasters. You should be very particular about the sun insured and make sure that all your home contents are covered in your home insurance policy – according to some industry expert.

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Summing It Up!

According to industry experts, a home insurance policy is most of the time underestimated by most people but it is one of the most essential contingency insurance plans that we should have. Not only owners but tenants can as well cover their valuable items and household contents. Most of the rider benefits or add-on covers are not covered in a home insurance plan. Therefore, it is recommended to get an add-on cover even though you will have to pay an additional premium for the same but it will be worth investing.

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Written By: PolicyBazaar - Updated: 01 October 2021
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.