• Moving to a new city requires considerable planning, and it brings optimism for a better living environment, lively days, and a thrilling future. Nevertheless, when changing cities or relocating, it’s necessary to consider what will happen to the home insurance plan of your current residence. Although home insurance plans are not obligatory, their popularity has increased due to the elevated prices in India.
• Below are five questions you should ask prior to changing home insurance plans.

Question 1: Why Are You Considering a Switch?

• Home insurance plans are designated for specific residential properties and are determined based on factors like location, structure, etc. Therefore, when you move to a new residence, it might not be feasible to maintain the same insurance policy since homes cannot be relocated, and pricing varies by location. It’s crucial to reach out to your insurance provider and notify them about the move. The insurance policy will be modified depending on whether you choose to rent, sell, or leave the home with someone to look after it. Should you find your current home insurance policy unsatisfactory or another home insurance policy more enticing, you are free to switch. However, it’s important to be completely certain about this decision.

Question 2: What Steps Should You Take to Select a New Insurance Plan?

• If you’ve made the decision to end the current home insurance and obtain a new one, you can begin by looking into various insurance providers. You can evaluate their features and offerings before investing in the option that provides the greatest advantages.

Below are some common types of home insurance policies:
● Comprehensive Home Insurance:
This type safeguards your home from all forms of accidents, natural disasters, riots, break-ins, and more.
● Property Insurance:
This covers your home alongside its fittings.
● Building Insurance:
This protects the house against natural catastrophes like earthquakes, floods, etc.
● Home Content Insurance:
This ensures the safety of significant belongings inside the house like the television, refrigerator, sofa, etc.
Here is a compilation of some well-known home insurance companies and their interest rates as of March 8, 2022:
Insurance Company
Minimum Interest Rate
Maximum Interest Rate
PNB Housing

7. 90%
8. 70%
   SBI
   7%
9. 85%
   Bank of Baroda
10. 00%
11. 50%
    HDFC
12. 90%
13. 25%
    Bank of India
14. 85%
15. 25%
    Union Bank of India
16. 85%
17. 40%
    ICICI Bank
18. 90%
19. 05%
    Axis Bank
20. 75%
21. 55%
    Bajaj Finserv
22. 90%
23. 90%
    Kotak Mahindra Bank
24. 75%
25. 45%
    
    Question 3: What Will the New Policy Include?
    
    When acquiring a new policy cover, there are several key aspects you should verify in your insurance:
    ● Homeowners’ insurance policies should cover damage and destruction to a house’s interior and exterior, theft or loss of belongings, and personal liability in the event of third-party injury.
    ● There should be three fundamental levels of coverage: actual cash value, replacement cost, and extended replacement value.
    ● Policy rates are heavily influenced by the insurer’s perception of the likelihood that you will file a claim. Thus, they evaluate based on the previous claim history linked to the property, its vicinity, and the home’s condition.
    
    Question 4: What Will Be the Expenses Involved in This Transition?
    
    If you have sold or rented your home, you may want to downgrade your home insurance policy since canceling the policy mid-term may incur a cancellation fee. Always review the policy terms and conditions in advance. Additionally, some insurance companies offer the option to switch home policies. Therefore, consult your home insurance provider to find out if such options exist and what extra benefits may be available for switching policies.

Question 5: Will the switch be worthwhile?

Changing insurance policies gives you greater control over your home insurance plan, and you are permitted to make the switch at any time. The most frequent reasons for changing home insurance providers include
● Better pricing offers.
● Adapting to a shift in coverage needs.
● Receiving excellent bonuses and discounts.
● Finding an insurer with whom you may be more satisfied.

Factors to consider when changing home insurance policies

While you are altering your home insurance plan, ensure you keep these factors in consideration.
● The home insurance should protect your house and all valuables:
A typical policy covers two primary aspects—your house and its valuable contents. Note that the insurance safeguards your home for the construction costs rather than the market value of the house. The construction costs are determined based on the built area and construction rates.

● Evaluate all possibilities while selecting a plan:
Prior to selecting home insurance, ensure to assess all scenarios that might lead you to file a claim. Unexpected events like natural disasters, theft, warfare, etc. Along with unforeseen events, the company will also provide compensation for the renovation or repair of your home.

● Assess the appropriate coverage costs:
When selecting the policy, ascertain the coverage amount by thoroughly evaluating your property and possessions. If the value is less than the assured sum, it is preferable to be over-insured rather than under-insured. However, if the coverage is insufficient, it would imply that not everything will be insured and the premium could also be lower.

● Research the claim settlement ratio of the insurer:
While choosing a home insurance policy, conduct comprehensive research regarding the insurer’s claim settlement ratio. Look for information on online forums to see if customers have unfavorable reviews about the company and what types of insurance policies are most frequently selected by consumers.

● Review the terms and conditions prior to signing:
Ensure you have read all the terms and conditions, including exceptions, and thoroughly understand the policy. You should also confirm that your home address is accurately printed and that everything covered under the policy is clearly noted.

Conclusion

Relocating to a new city involves considerable deliberation regarding various matters. Make certain to remain informed about the status of your home insurance policy and reach out to the insurance provider if you require any clarification.