Posted on: Jul 25, 2025 | 3 mins | Written by: HDFC ERGO Team

Why Now is the best time to review your home insurance policy?

Why Now is the best time to review your home insurance policy?

Reviewing your home insurance policy is one aspect of being a smart homeowner. In India, some very good reasons serve as the actual time for reconsideration of your home insurance coverage in 2025. From varying property values to fluctuating risks, dilemmas in home insurance can cost you terribly. This blog will review why the present moment is the best time to review your home insurance policy, looking into homeowners insurance, property insurance, building insurance, and home contents insurance.

Understanding Home Insurance in India

Home insurance is basically property insurance or homeowners insurance meant to cover losses from unforeseen events including natural calamities, theft, and accidents against the house as well as its contents. An increasingly viable cash market has been maturing in India recently, offering options to homeowners. Building insurance will cover the house's structure, while home contents insurance covers the contents kept inside.

Home insurance is not only for your safety; it stands as a financial shield for your growing investment. In these days of complex risks related to homeownership, one has to be clear about what their insurance policy entails.

home insurance serves as a hedge, but essentially, it is a financial product that protects your investment. With increasing complexities in the risk front for homeownership, a clear insight into your policy will always go a long way.

1. Escalating Property Values

One of the most worthwhile causes to go through your home insurance policy today is the appreciation in property values in several Indian cities. Recent news says metropolitan areas like Mumbai, Delhi, or Bengaluru have witnessed considerable hikes in real estate prices. If indeed your property's value over the years has gone up, its current insurance may fail to provide for the necessary replacement cost in the event of losses.

Suppose, for example, your house was worth 50 lakhs a few years ago and is currently worth 80 lakhs; your insurance policy would need to take this into account. Not updating the insurance coverage might mean you have an underinsurance situation that can turn into a significant amount of money for you in case of a claim.

Further, real estate is guided by various factors contributing to the risk, including the economy, infrastructure development, and the ever-changing government policies. Keeping track of the updates could help you make well-informed decisions regarding your insurance requirements.

2. Changing Risk Factors

The risk landscape changes all the time. Climate change, urbanisation, and sociocultural development are but a few factors that constitute the present-day risks. In light of these realities, naturally occurring disasters in India, including floods, earthquakes, and cyclones, have all become events that could devastate houses.

Reviewing your home insurance policy allows you to assess whether your coverage deals with such risks adequately. For instance, living in a flood-affected area may require adding coverage or riders that specifically protect against flood damage.

In addition to urbanisation, increased construction and population density are worsening different risks, such as fire hazards and theft. Recognising how these risks are changing will be very helpful to ascertain whether your home insurance policy provides enough coverage.

3. New Additions and Renovations

Have you made any significant changes to your home recently? Whether it is a new extension, a renovated kitchen, or added high-value items like artwork or electronics, these changes can affect your insurance needs.

When you renovate or add to your home, the value of your property increases, and so does the risk associated with it. It is crucial to notify your insurance provider about these changes to ensure that your policy includes the new value of your home and its contents.

For example, if you’ve installed a swimming pool or a gym at home, these additions may require extra coverage. Neglecting to update your policy can leave you susceptible to an accident or damage concerning these new amenities.

4. New Insurance Products Are Constantly Tempting You

The insurance industry in India is volatile, with the entry of new products and their respective features almost daily. Insurers are now introducing more comprehensive policies that cover specific risks, such as cyber threats or personal liability.

Through a policy review, you can learn about these new products and determine whether any will better suit your current needs. If you travel a lot and leave your home unattended, for example, you may want to consider theft or damage coverage while you are away.

Some insurers also offer tailor-made policies, where you can choose the coverage most suited to your own needs. This can be useful for homeowners with special cases or unusual values.

5. Premium Adjustments

Insurance premiums aren't constant; they can fluctuate based on certain significant factors, such as history of claims, economic conditions, and changes in personal circumstances. A margin may be granted on your premium if you make further improvements to your home as far as safety is concerned, such as adding a safety system or fire alarms.

On the other hand, with a claim made earlier in the past twelve months, your premium has probably increased. A policy check reveals a comparison of different insurers and is likely to land one that provides the best cover at a competitive price.

6. Too flexible on exclusions

All insurance policies usually come with certain exclusions - the things or events not covered by the policy. Understanding exclusions is important to avoid disappointments in claim processing.

One example is that most policies do not cover the damages that are caused by neglect or by wear and tear. When you buy a home insurance policy, now is the time to find out what is included in the coverage, as this will help with making decisions about what additional coverage or riders may be needed.

Some of those exclusions may only pertain to special natural disasters like an earthquake or flood; however, specific riders will have to be included with the policies. Knowing what these are can help prevent a potentially huge coverage gap.

Why Home Content Insurance is Important?

Contrary to building insurance, home contents insurance principally takes care of your own personal property inside your home. If your home were to suffer damages, this policy can provide coverage for individual possessions, including furniture, electronics, clothing, and many other personal and valuable belongings.

Over time, your possessions accumulate, and so you may want to check if the current value of your contents insurance is up to date. You may also want to consider increasing coverage if you purchased any expensive items, jewellery, or electronics.

In addition, keep a catalogue of all the items in your home, including photographs and receipts, to ease the claims process in case of loss or damage. By regularly updating this inventory, you can ensure that your home contents insurance provides adequate protection.

Conclusion

As we step into 2025, the importance of reviewing the home insurance policy can hardly be exaggerated. With ever-rising property values, shifting risk factors and emerging insurance products, it is just the right time to revisit the coverage in question.

This applies to first-time homeowners and those who have lived in their homes for several years. Taking some time to review the insurance policy can save you from big losses and add some peace of mind knowing that you are covered. Don't wait for an accident to happen; take proactive measures now to ensure adequate protection for your home and its contents.


Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.


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