It is good that you are thinking about buying property insurance, however, there are some factors that you should consider in order to ensure you choose the right one=
Have a clear understanding of the claim process
Two insurance companies can promise to give you the same coverage, but they can vastly differ when it comes to compensating you at the time of loss. Ask the insurance company about how the claims are handled. Will the entire claim amount pay upfront or it’s just a fraction? Does the company compensate you for all the losses that you incur?
Some insurance companies will offer you the claim value immediately after the loss and wait for covering the replacement value till the time you have replaced all your items. If you have receipts, it is easy to prove it. However, it could be an issue if all your assets are wiped out.
Read More: Five Mistakes That Businesses Make While Buying Commercial Property Insurance
It is necessary to have a clear understanding of the claim process along with the timeline within which it will be settled to ensure a smooth claim settlement process.
You can also take the help of your insurance broker if you have purchased a property insurance policy through them.
Increase deductibles to lower premium rates
In insurance terminology, the deductible is the amount that you would have to pay before the insurance company settles the claim. It means you can increase your deductible to lower your insurance premium rates. Further, higher deductibles deter policyholders from approaching the insurance company for every single claim. It lowers the number of insurance claims and also trims the premium rates.
Keep pace with inflation
The property insurance coverage which you have bought today may become insufficient after two or three years when there will be a rise in the inflation rate, and therefore, it is necessary to keep your property insurance coverage in sync with the inflation. Many property insurance companies offer inflation guard which increases the coverage in accordance with inflation. When your policy comes for renewal, talk to your insurer to ensure that your coverage is sufficient.
Similarly, when you make any improvement in your property, expand the coverage to bring it in line with the current scenario.
Have a sufficient coverage
Taking the above point forward, while buying property insurance coverage, prepare a list of all the items that you want to cover. A proper analysis of the situation is required to compute the correct sum insured and decide which items to be covered and which not. While it is good to have property insurance coverage, it is equally necessary to ensure it is sufficient. There is no use of the insurance if you would have to recoup money from your pocket at the time of loss. Remember, underinsurance is as bad as no insurance.
Consider a fire insurance policy
A few days ago, Chennai Silks showroom was gutted down in a fire. The loss was estimated to be in several crores of rupees as buildings, stocks, and other assets were completely damaged. Even if you have made your property fireproof, you can’t completely rule out the possibility of fire accidents. It means you should buy a fire insurance policy to get compensation in case any loss or damage happens due to fire. Property insurance is an umbrella policy that covers various insurance plans like office insurance, engineering all risk insurance, fire insurance, constructing all risk insurance, etc.; and you can choose the policy as per your needs.
Check exclusion
While you have purchased your property insurance after understanding its inclusions but have you checked its exclusions as well? There are some perils and situations, like loss due to negligence, willful destruction, loss or damage occurring while engaging in unlawful activities, etc.; which are not covered by the insurer. So, it is essential to have a complete understanding of the exclusions in order to avoid the situation when the insurer may refuse your claim just because it falls under the exclusion.
Read More: Six Factors Deciding Property Insurance Premium Rates
How can SecureNow help you?
Considering the benefits offered by property insurance, it is essential to buy a comprehensive insurance plan. But do you know how you can choose the right insurance policy? While the availability of various insurance companies acts as a boon for insurance applicants, it also makes it tough to choose one.
Now you don’t need to fret! SecureNow, the leading corporate insurance advisor, is here to guide you on available property insurance policy options which you can easily review and compare before zeroing in on one insurer.
The purpose of insurance is to indemnify you against losses or damages to property, and for that, it is necessary to have a clear understanding of your requirements. You can rely on SecureNow which will ease the task of finding the right policy for you.
Remember, you are only one call away from buying the right property insurance!
