Do You Have To Renew Home Insurance Every Year?

Are you worried that you might not be able to get a proper home insurance plan? Are you wondering about the best home insurance application process? Don’t you worry! Home insurance is necessary for securing the home from any danger. Home insurance generally covers the insurance of house structure, contents of the house, valuable items inside the house, etc. Get the details of a policy when you are applying for home insurance. If you know all the details, you can analyze the tenure of the insurance, the payable amount, and other information about the insurance policy.

Tenure-Based Home Insurance Policies

Home insurance policies are generally tenure based; these policies are of two types, which are: Short-term, and Long-term policies.

Short-Term Policies

The tenure of short-term policies is from one to three years. This policy covers the insurance of the structure and the content of your house and protects it against damage. The tenure of these policies is short, and the risk is lower. So they are affordable as compared to long-term policies.

Long Term Policies

Long-term policies are those in which the tenure for the home insurance policy is 20-30 years. These policies cover every requirement of home insurance. You can purchase a premium option to add features to your insurance policy. The tenure of this policy is long, so the risks are higher. Therefore these policies are expensive as compared to the short-term plan.

The renewal of the home insurance depends upon the period of your policy. You need to update your home insurance annually if the tenure of the property’s insurance is one year. However, if the policy period is long-term, you don’t need to renew your insurance annually. Always check your policy documents properly before selecting an insurance plan.

In the next paragraph, you can check out the need for home insurance renewal.

Home Insurance Policy Benefits

There are several benefits of a home insurance policy. But before choosing an insurance plan, understand the basic requirements of home insurance. Let us look at some points that describe the benefits of home insurance and the need to renew it regularly.

1. Home insurance covers everything. It finances your house structure and the content of your house. It provides insurance for your house. The insurance depends on your policy plan.
2. It increases the resale value of the house. You cannot transfer the insurance to the next buyer. However, for an insured home, the buyers will have the assurance that the house is properly maintained.
3. You can analyze the content of your house. If you renew your house insurance every year, you are aware of the condition of the content of your home.
4. The property is well maintained and looked after, securing it for future generations.

Factors on Which the Home Insurance Renewal Policy Depends

Renewing the home insurance plan is not a difficult task. You can easily extend your home insurance online. Select the best plan for your home. You will need your identity proof, proof of ownership, salary and tax details, and other similar documents for identification. Before purchasing any home insurance plan, it is essential to know the renewal period of that policy.

• The condition of the property for which you need home insurance. The external and internal state of the property should be good.
• You should include the market value of the contents of your house in the insurance policy.
• Property owner’s financial background.
• The geographic location of the house is also crucial. There are several geographic locations prone to natural calamity. These locations have a higher home insurance rate, so check these factors before applying for home insurance renewal.
• Provide the criminal record of the property owner (if any).
• The remaining time of your current house insurance.

Importance of Renewing Home Insurance Policy on Time

Check the duration of the policy and its renewal dates after buying a home insurance plan. There are several reasons why you should renew your home insurance in time. Let us have a look at some of them.

• You can save money by renewing on time. If the renewal date is over, you might need to buy a new insurance plan which could be very costly.
• The value of the house increases after renewing it on time. So make sure that you extend your home insurance policy before it ends.
• You can sell your house effortlessly if it is regularly insured. The buyer will prefer an insured property over an uninsured one.
• A house is maintained if it is regularly insured. You can make it stronger and safer for future generations.

Conclusion

The long-term policy plan is the best if you want to save yourself from the hassle of renewing it regularly. However, if you have an existing short-time plan and have to renew it yearly, always extend your plans at least two months before their renewal date.

Know the benefits and importance of home insurance before purchasing the plan. To select some additional features for your policy, you can buy the premium insurance plan for your house. There are different types of home insurance policies available. You can choose yours according to the policy suitable for your house.

This article provides all the details about home insurance and its renewal. For any guidance related to home loan and insurance policies, you can always take the help of a financial expert like Piramal Finance. They will suggest what’s best for you and help take care of your personal loan requirements if any. You can even get suggestions on the best insurance plans and compare different policies and plans to avail of the one best for you.