What should be the ideal tenure for home insurance


#1

What should be the ideal tenure for home insurance? Is getting an annual plan advisable?


#2

Opting for a long term home insurance policy can help you save a whole lot of money as yearly premiums are much more expensive. A long term home insurance policy for say 10 years can make your premium almost half to what you will end up paying if you renew your home
insurance plan every year.

So compare premium and opt for a longer term plan to get insurance benefits without pinching your pocket.


#3

Hi Meera,

This will depend on the type of home insurance that you will need. A home can have risks pertaining to its structure and the content inside. While estimating the insurance requirement for your home structure, compare your home value with the prevailing market cost to build a similar property. Underinsurance of property can expose you to financial risk. Similarly, when considering the insurance for contents in your home, take into account all the belongings and make a list of all items, estimate its prevailing value, and accordingly get the adequate value of insurance
Similarly, when considering the insurance for contents in your home, take into account all the belongings and make a list of all items, estimate its prevailing value, and accordingly get the adequate value of insurance coverage.

While getting the insurance for the structure of your house, you have the option to get the insurance value as per depreciated value method or the reinstatement value method. The depreciated value may fall short of realising the total cost of the property as depreciation may reduce the cover size. On the other hand, reinstatement method considers the cost required to rebuild the property if it is damaged, so it is better to opt for the reinstatement cover over the depreciated value cover.

The depreciated value may fall short of realising the total cost of the property as depreciation may reduce the cover size. On the other hand, reinstatement method considers the cost required to rebuild the property if it is damaged, so it is better to opt for the reinstatement cover over the depreciated value cover.

As you have the option to insure the building and contents separately, you have the option to get a comprehensive insurance for both building and contents, or, a separate policy for both purposes. While getting the insurance you should read the items covered under the comprehensive policy and its cost. You may find separate insurance covers to include more items in comparison to a single cover, but at the same time it may cost you more and during the claims will be settled separately as well. A combined content and building insurance policy may cost you less and at the time of damage, the claim is settled together by the same insurer. Choose your tenure depending on the policy cost and policy type.

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Cheers,
BB Expert