Property Insurance: Some Dos and Don’ts
A fire or burglary in your home is enough to devastate you. A fire insurance policy protects you from all this and more. Doing all the right things while buying your policy goes a long way in assuring your peace of mind and also giving you the right protection at the time of need.
Here are some Dos and Don’ts for buying Property insurance
When you buy a property insurance policy you should:
- Know you can insure only property you own
- Be sure you have the documents to prove ownership and value at the time of a claim
- Give a complete and correct description, address and location of the property to be covered
- Ask the intermediary or insurer to give information and explain the basis of fixing the Sum Insured. It can be
- Market Value basis where depreciation is taken into account or
- Reinstatement Value basis where the cost of replacement of the property is taken into account. This is the basis on which the claim is paid.
- Information regarding add-ons; choose them as per your needs
- Don’t allow anyone else to fill your proposal form
- Don’t conceal or misstate any facts about the property and its fixtures
- Don’t misdeclare the value of your property and face disputes at the time of a claim