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Property Insurance Dos, Don'ts and Maybe

Given our love for our home, house is undoubtedly one of our biggest emotional investment.

Given the property prices, it also is undoubtedly one of our biggest financial investment.

Add to this the furniture and fixtures; white goods and electronic gadgets; gold, jewellery and other valuables; all bought with lots of love and care. 

You can, therefore, well imagine how much emotional and financial value is attached to our homes.


Since the stakes involved are enormous, it is imperative that we protect our house and other belongings. This is where property or home insurance comes into picture. I had, earlier, in my blog 'Have You Insured Your House and its Contents' covered the basics of household insurance.

Taking the discussion further, here's a list of important Dos and Don'ts.

Dos
- Needless to say, do take such a policy. The premiums are quite insignificant. 
- As far as permissible and financially feasible, opt for Replacement Value as the sum assured.
- Property and all insured contents must be properly documented and supported by videos and photographs.
- Do read the policy wordings carefully, especially the exclusions... there are many of them

Don'ts  
- Don't forget to keep track of high-value purchases during the year and include them in the policy at the time of next renewal
- Don't keep the documents in the house that you are insuring. Preferably use a bank locker.
- Don't forget to read the fine print. Numerous devils lie in them.
- Never sign the blank form. Never let the agent fill the form for you.

Maybe
- To reduce the premium, you can maybe opt for a higher deductible
- Apart from fire, allied perils and burglary, you can maybe also consider equipment breakdown cover
- Depending on the level of risk, you can maybe extend your cover to include terrorism

There is no protection against emotional impact of damage or loss, except your will power. But financial impact can surely be mitigated with an insurance plan.

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