Is it Necessary to Renew Home Insurance Annually? Everything You Need to Know

Posted on: Jun 8, 2022 | | Written by:

Is it Necessary to Renew Home Insurance Annually? Everything You Need to Know

Every homeowner or tenant are advised to secure their residence with the best home insurance policy, as it secures your property against fire, natural calamities, theft or any unforeseen events. Apart from this, it is also necessary to renew your home insurance annually. To renew a home insurance policy, you should first know the expiry date mentioned in your home insurance policy. In this blog, we will tell you everything you need to know for renewing home insurance annually.

Types of Home Insurance Policy:

Bharat Griha Raksha

Bharat Griha Raksha is a standard home insurance policy made mandatory by the Insurance Regulatory and Development Authority of India (IRDAI) for every insurer to offer with effect from April 1, 2021. Bharat Griha Raksha is a home insurance cover that provides coverage against loss, damage or destruction of the home building and its contents against the risk of fire, earthquake, flood and other allied perils. It also comes with an in-built add-on like terrorism cover and rent for alternate accommodation. In addition, the valuable content of the house can also be covered under Bharat Griha Raksha for up to 5 lakhs of the Sum insured.

Home Shield Insurance

Home Shield insurance provides a comprehensive cover for your assets for as long as five years from virtually all the fortuitous events that could take away your peace of mind. Moreover, HDFC ERGO Home Shield Insurance covers the actual value of the property as mentioned in the property's registered agreement. It also offers optional covers to personalize the plan to meet your unique needs.

Moreover, you can buy add-on covers by paying an extra premium amount.

Do you have to Renew Your Home Insurance Policy Annually?

If your policy gives the home protection of one year, you must renew it annually. However, if it is a long-term policy, you are free from the hassle of renewing the policy every year.

Why Should You Renew Your Home Insurance Policy on Time?

Here are some benefits of renewing your home insurance policy on time:

• You save time by renewing your home insurance policy on time. If you do not renew it before the expiry date, the insurer will ask you to buy a new one, and it will be an expensive affair.

• Although home insurance plan is non-transferable, but if you sell your property, your buyer will be in a relief zone after knowing the home insurance policy status. They will consider you as a responsible seller who never misses the renewal date, and it makes them feel that the home is free from damages.

• Renewing your home insurance policy on time makes you stay updated with your home and the value of its contents. During the renewal, there will be some form of revision of the valuation metrics, and it keeps you updated with the current price of your home, which can also assist you when you are planning to sell the house.

• The most significant benefit is that your home becomes secure for your future generation. Buying a house means a lifetime investment. Timely renewal of home insurance policy means your property is well-maintained and safe from several risks.

Conclusion

India is prone to natural calamities like storms, floods, etc which can drain out years of income in fraction of seconds. Hence, it is advisable to secure your residence with the best home insurance policy. You can check out HDFC ERGO home insurance policy which covers home structure worth up to ₹ 10 crore.

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

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