• Most property insurance policies in India can be tailored to fit individual needs. You can secure coverage according to your specific demands and preferences. For instance, if you reside in a compact 1 BHK in a tier 2 city in India, you can obtain home insurance coverage of INR 5 lakhs, which would be adequate. Conversely, if you inhabit a large villa in a major tier 1 city such as Mumbai, your required home insurance coverage might need to be around INR 5 crores! Consequently, the coverage limit is reliant on the property’s worth. Let us explore how you can determine the ideal amount and obtain sufficient coverage.

Points to remember when selecting home insurance coverage

1. The value of the house
To begin with, the value of the property must be considered when selecting the appropriate home insurance coverage. For this, evaluate the current market value of the house and the sum required if it were to be destroyed by a fire or other hazard.
2. The value of the belongings
After that, appraise the worth of the house’s belongings. Every detail, from the costly furniture to the extravagant decor, should be factored in when purchasing homeowners insurance coverage.
3. Your budget
While you certainly desire the maximum coverage for your home, you also need to acquire coverage that is affordable. You must be capable of paying the premium promptly and keeping the coverage active.

Important points to think about

1. The insurer will assess your request
Upon submitting your application, the insurer will assess your request. This assessment will primarily take place when you request a greater coverage amount.
2. You must review the inclusions and exclusions
Whether you are choosing a homeowners or renters insurance policy, it is essential to thoroughly examine the terms and conditions to grasp the precise extent of coverage. The coverage sum alone isn’t sufficient; you require a policy addressing your specific needs, so opt for a plan that is all-encompassing and comprehensive.
3. You must maintain your plan’s activity
Lastly, it is crucial to pay the premium punctually and keep the policy active. By doing so, you will ensure that you receive the claim amount whenever necessary. Failing to pay the premium on time could lead to your plan lapsing, and even a substantial home insurance policy may not shield you from financial distress during such times.

The bottom line

• There are numerous factors to evaluate when determining the limit of your property insurance policy. You must consider all the aforementioned points and select the appropriate coverage that will safeguard your property while also maintaining your financial stability.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before finalizing the sales.