Waiver of Underinsurance in Home Insurance

A waiver of underinsurance in home insurance is an optional clause that can significantly impact how your claim is handled in the event of a loss. Understanding its implications is crucial for making informed decisions about your home insurance coverage.

Underinsurance occurs when your home insurance policy’s coverage limit is less than the actual replacement cost of your home and belongings. This can happen due to various reasons, such as rising construction costs, undervaluing Your belongings, not updating the policy.

A waiver of underinsurance removes this penalty of underinsurance. If the clause applies and You meet the specific conditions, your insurer will pay the full claim amount up to your policy limit, regardless of any underinsurance.

However, underinsurance does not apply to the Bharat Griha Raksha Policy. Thus, if Your Sum Insured calculated on the basis of the information that You provided, is less than the actual value at risk, the difference will not affect the amount the Insurer will pay.