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Dos and Don'ts while availing of Property Insurance

Dos and Don'ts while availing of Property Insurance

Property Insurance is a form of General Insurance that covers a wide spectrum of categories depending on the kind of property one seeks to cover. This type mainly includes insurance of buildings, machinery, inventories etc against fire and allied perils; even burglary risks are also covered. 

Any sort of natural or man-made disaster leaves behind a trail of huge destruction to both life and property. The frequency of natural disasters has increased in India in the last few years and the losses from such disasters have been humongous. Thus, a need for a proper financial planning can help to reduce the financial burden. And this can only be done with adequate property insurance. However, before availing any such policies, thorough research needs to be done in order to understand the basic dos and don’ts. 

The following basic checks should be done before you decide to buy property insurance:

  • Since the IRDA is the industry watchdog, make sure the company selling the policy is registered with them

  • The intermediaries from whom you decide to buy the policy should be a genuine licensed agent or broker.

  • It is advisable to buy policies directly from the company, may be online from their official website

  • Always read the brochure/prospectus carefully and get to know the terms and conditions and what all are covered, before signing on the dotted line

Some dos and don’ts while buying property insurance

Your dream home can be devastated by incidents like fire breakout or burglary. During such unfortunate incidents, a fire insurance policy comes handy as it protects you from the entire financial burden that you might have undergone. Doing all the necessary checks while buying a policy provides you with the right protection during those hard days.

Dos while availing of property insurance

While buying a property insurance policy you should keep the following things in your mind:

  • Only the property that you own can be insured

  • Make sure that you are in possession of all the necessary documents to prove ownership and value at the time of filing a claim

  • Provide a detailed and correct description, address and location of the property to be covered

  • Get clarity from the intermediary or insurer on the sum insured and have a complete understanding on the factors dependent on fixing the same. It could be market value of your asset after considering its depreciation or reinstatement value based on the cost of replacement of the property. Basis these pointers the claims are generally being reimbursed. You should also have a clear understanding of various add-ons, so that based on your needs those can be availed.

Dont’s while availing of property insurance

Now some pointers you should keep in mind while availing a property insurance policy:

  • You shouldn’t get your proposal form filled up by any other person. Always do it yourself. 

  • Don’t conceal or misstate any facts about your property and its fixtures for which you want to avail insurance

  • Don’t declare wrong value of your property, which in turn will get into disputes at the time of claim and will make it complicated