Some Dos and Don’ts
When you buy a property insurance policy you should: Know you can insure only property you own. Be sure you have the documents to prove ownership and value at the time of a claim. Always keep a safe collection of all bills and documents related to the purchase of your valuables. If unable to stock any evidence, you can click pictures of your valuables and their purchase documents with serial numbers and save them online in a cloud-based service like Dropbox. Don’t forget to mention the date of purchase and value at the time of purchase. On annual basis, create a written inventory of all your household goods from jewellery to electronic equipment. The new sheet should be deposited with the insurance company for their records. Give a complete and correct description, address and location of the property to be covered. Ask the intermediary or insurer to give information and explain the basis of fixing the sum insured. It can be: a) market value-based where depreciation is taken into account, or b) reinstatement valuebased where the cost of replacement of the property is taken into account. This is the basis on which the claim is paid. Ask for information regarding add-ons; choose them as per your needs.
Don’t allow anyone else to fill your proposal form. Don’t conceal or misstate any facts about the property and its fixtures. Don’t mis-declare the value of your property and face disputes at the time of a claim.