Securing your home with insurance is undoubtedly a good decision for financial protection against any damages. However, what is more important is buying the right home insurance that perfectly aligns with your specific requirements. If you think your home insurance in the past did not provide comprehensive coverage, resulting in financial loss, then this is the perfect time to review and upgrade your insurance policy with the help of a home insurance app. As the new financial year approaches, let us explore the reasons why you should consider upgrading your home insurance.
Understanding home insurance
Any damage to the structure or contents of your home due to natural or man-made calamities, theft, or fire can cost you dearly. You have to spend a significant amount on its repairs or renovation, leading to a severe financial loss. When you secure your home with a home insurance policy, it will come to your aid during such critical situations. Home insurance, also known as homeowners insurance, is a type of property insurance that safeguards your home and its contents financially against unforeseen events.
Why upgrade your home insurance before the new financial year
Here are some reasons why upgrading your home insurance becomes crucial:
1. Enhanced coverage
Risks like floods or earthquakes may not be included in a standard home insurance policy. If your location is found to be vulnerable to such risks of late, you must consider upgrading your home insurance that protects your house against these perils.
2. Home business
If you are planning to start a business from home, the standard home insurance may need to be upgraded to offer coverage for your business assets.
3. Change in property value
Over time, the value of your property may appreciate or depreciate. If the property value has appreciated, the existing coverage may no longer provide adequate protection. You have to increase the coverage to match the property’s current value, otherwise the claim amount will be as per the property’s previous value. So, before the financial year, evaluate the market value of your home and make necessary changes to your policy or upgrade it for maximum financial protection.
4. Increase in home contents
You have added more personal belongings like furniture and fittings to the house. If your current policy is not sufficient to cover these new personal items, you must upgrade the coverage to cover the loss in case of any unfortunate event.
5. Home renovation
If you have carried out any renovation of your home, it will increase the repair costs of your property during unwanted events. In such cases, upgrading home insurance coverage becomes critical.
6. Discounts and offers
When you upgrade before renewal, some insurers offer discounts on the premium, loyalty benefits, or promotional offers, leading to increased savings. Getting quotes from multiple insurance providers, comparing them based on coverage, cost, and benefits will help you grab the best deal for your upgraded home insurance. Also, if you bundle home insurance with other policies such as motor insurance or health insurance, insurers offer discounts on the premium.
7. Review policy details
Reviewing the existing home insurance policy before the financial year will help identify any limitations or exclusions in the policy. Upgrading the policy may help eliminate the gaps and provide the required coverage.
Why do you need home insurance?
Though home insurance is not mandatory, it is still advisable to protect your property with the right insurance policy due to several reasons, such as:
- Financial security:Â fire, theft, natural calamities like earthquakes or floods, or man-made events like vandalism and riots can cause significant damage to the home and its contents. Home insurance saves your finances by covering the loss.
- Safeguards personal items:Â home insurance helps repair or replace your personal belongings, such as furniture, artefacts, clothing, etc if they get stolen or damaged.
- Alternate accommodation:Â if a covered event damages your house, making it uninhabitable, insurance will cover the cost of alternate temporary accommodation and other necessary expenses while your home is being rebuilt.
- Liability coverage:Â if someone gets injured in your property, you are liable for the medical expenses or damages. Insurance helps cover this cost.
- Peace of mind:Â with home insurance as a safety net against unfortunate events, you can have peace of mind.
Conclusion
When was the last time you reviewed your home insurance? Does it provide sufficient coverage given the fact that it has been several years since you purchased home insurance? If you have made changes to your home or added valuable personal items, then upgrading your home insurance is a must to ensure your property and its contents are well-protected. And what better time than the new financial year? So, before the new financial year, reassess your needs, compare the polices, look for benefits, and upgrade your existing policy for total protection against potential risks.
