Buying or constructing a house from scratch is always an emotional affair and usually has lots of feelings attached to it. However, natural calamities, like flood, earthquake, heavy rainfall, etc. not only damage your ‘abode’ in a matter of seconds but also drain your wallet. While, I understand that natural perils are beyond your control, but what about events like theft and burglary? Theseincidents can make you poorer by thousands or lakhs.
So, it is indispensable to go with a comprehensive home insurance or property insurance policy that promises to secure both the structure and content of your house. Note, home policy also helps you in case you want to renovate, repair or remodel your house after an accident. In simpler words, post-accident recoveries are also covered under the policy. Further, you can go with a long-term property insurance policy, which promises to cover your home for a longer duration of say 10 or 20 years in one go.
Before we discuss the benefits associated with a long-term home insurance plan, remember one thing—Even if you have a long-term home insurance policy, don’t forget to increase your sum insured if the valuation of your property increases. It will be of no use to go for a lower cover.
Now, let me unveil some benefits of long-term house insurance plans: -
1. Stress-free Stay: Of course, you won’t own a house for just few months or years. Insuring one’s house for ten years in one go will ensure that there is no stress— atleast not because of policy renewal.
2. Lucrative Discounts: You can enjoy a massive 50% discount if you opt for a 10-year structure policy cover. With every year, your home insurance premium may increase due to factors like age of property, valuation of property, etc. However, when you go for a long-term policy, your premium gets locked relatively for a longer time. It means, you are insulated from the premium hike.
3. No risks and losses due to Policy Lapse: Imagine, an earthquake damages the structure of your house and you approach the insurer to file a claim. However, you get a second shock—your home insurance policy is expired and the insurer refuses to settle your claim! In case of any unforeseen situation, you can’t approach the insurer. And, before the revival of the lapsed policy, if any accident occurs, you may end up bearing heavy losses. As a long-term home insurance policy is valid for a longer duration, so it means, you don’t need to renew it every year.
4. Easy policy Upgradation: Purchasing a long-term policy doesn’t mean that you have to stay with it against your wishes. Just like a normal policy, you can also cancel it and get a refund on the unutilised time of the policy tenure. Further, with a rise in the valuation of property, you can increase the sum insured to ensure your cover is sufficient.
At last, your home is one of the most valued possessions and taking steps for insuring it is a viable way of shielding it from all types of losses and damages. While, no one knows what the future holds, we can definitely take some steps TODAY to glorify our TOMORROW, and buying a home insurance policy is an important step that you can take to curtail serious setbacks. So, think about the future and go for a comprehensive long-term home insurance policy and minimise uncertainties to a great extent.