Buying home insurance plan? Avoid these common mistakes
Once you’ve bought your home, the next essential thing to buy is a home insurance plan. To make a decision you will not regret later, when you buy home insurance online or offline, here are the common mistakes you should avoid:
Focusing on the price
Like with any purchase, being concerned with the price of home insurance plans is natural. However, focusing too much on the price of the plan and using that as the sole basis of choosing a specific policy is a mistake you want to steer clear of at all costs.
Opting for a cheaper policy most often may mean letting go of certain essential coverage features. That will end up costing you a lot more in the long-term. Remember that while price is one of the deciding factors, it’s not the only one. You should research and consider all factors to be able to buy the best home insurance in India suited for your needs.
Under-insuring your home
Usually, your home loan provider needs you to have a home insurance plan only up to the loan amount you still owe them. While that may be more affordable to you, if you only insure your home to match your pending loan amount, in case of a loss, the money will go directly to your home loan provider and you will get nothing.
You should have an insurance coverage that is enough to cover the cost of rebuilding your house in case it gets destroyed. While that may be the worst case scenario, it’s exactly why we get an insurance cover in the first place, to be safe than sorry.
Confusing different types of covers
Home insurance plans have different types of covers and you can select them on the basis of your needs. Contents insurance covers the items inside your home like furniture, jewellery, documents, and electronics, while home structure insurance only covers the structure of your home.
Most people don’t understand the difference between the types of covers and buy one type of home insurance plan thinking they are covered for additional things too.
Being unaware of the exclusions and clauses
Most often when people make a claim, they’re taken aback when they realize it’s been rejected because of exclusions they were not aware of. When you buy home insurance online or offline, it’s important to know and understand what the exclusions of the home insurance plan are. Put in the time do the research, ask all the questions you have and make sure you’re very clear about what your home insurance plan covers and what it doesn’t.
Most home insurance plans also have very specific clauses, which are important to know. For instance, a home insurance plan may not cover the loss from burglary if the windows were left open.
Not updating your plan
During the policy period of your home insurance plan, a lot can change, which you should update your insurance provider about. For instance, you expand your home to accommodate your dream master bedroom or you renovate your kitchen, such changes call for an update.
Such home renovations will increase your home’s value, which in turn will also hike the cost of rebuilding your home. Delaying to update your plan or ignoring it altogether is a very common mistake homeowners make.
By avoiding these common mistakes, you can buy a home insurance plan that will truly protect your home and everything you care about. Bajaj Finserv offers pre-approved loans to help you meet your goals. The application is easy and the approval and disbursal process is quick. You can check your pre-approved loan offer within a few minutes by entering your basic details.