What Is Home Insurance Renewal and Why It’s Important
As per a report by Down To Earth and CSE, nearly 410,000 houses were destroyed in India in 2022 due to climate change-related disasters. Not just natural events, such as floods and landslides, pose a danger to houses, but fire and theft are also among the possible risks for Indian houses.
This is where home insurance and its renewal play a crucial role. Timely renewal makes sure that protection for your house never lapses when you need it most. Let us understand what home insurance renewal is and why it is so essential for every homeowner today.
What is Home Insurance Renewal?
Home insurance renewal refers to the process of extending your current insurance policy before its expiration. It allows you to keep your house protection intact against any kind of potential risks and financial losses.
Despite rising natural disasters, only 39% of Indians who explore home insurance actually buy a policy. Confusion, low awareness, and a lack of urgency still hold many Indians back from getting house insurance, despite 41% citing calamities such as floods and earthquakes as key motivators. In high-risk times such as these, making timely home insurance renewal becomes more critical than ever.
Why is Home Insurance Renewal Important?
Below are the 5 most important reasons why you should renew your home insurance:
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Protection from Unfortunate Events
A house is a significant investment. Renewing your policy on time ensures that any damage or loss due to unforeseen events, such as floods, earthquakes, fires, vandalism, or more, is covered. It prevents you from bearing massive repair or rebuilding costs out of pocket.
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Coverage for Valuables
In 2023 in Thane, Mumbai, there were an average of 2 reported house-breaking thefts in a day. Thus, renewing your home insurance becomes more essential. It not only provides coverage for your home but also for the valuables inside it. Items such as jewellery and other valuables are covered on an agreed value basis.
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Updated Coverage Needs
The renewal process offers an opportunity to review and update your home insurance policy to reflect your current circumstances. For instance, if you have made renovations or acquired new valuables, you can increase your coverage limits to avoid being underinsured. You can also add or remove specific coverages and add-ons to better suit your evolving needs.
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Being a Responsible Seller
An uninterrupted insurance history can be viewed favourably by potential buyers. This might indicate that the property has been consistently well-maintained and protected. It also creates a positive image in front of the buyer, making the resale process much easier.
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Save a Fortune
Renewing your home insurance on time can often be more cost-effective. This is because buying a brand-new policy after a lapse might involve a more expensive process. Additionally, your insurer may offer you higher premiums based on your risk assessment, indicating your inconsistent policy renewal.
Do’s and Don’ts: Tips for Home Insurance Renewal
Here are some tips that will help you be smart about your home insurance renewal:
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Bottom Line
Home insurance renewal is the process of extending your existing insurance policy beyond its expiration date to ensure continuous financial protection for your property. So, it is a proactive step to safeguard your life’s work against unpredictable risks, such as fire, natural disasters, and theft.
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