My house in Delhi is insured against earthquakes and I have never missed any premiums. I want to add two rooms to the second floor. Will my existing insurance policy suffice or will I have to take a new policy? If I need to take a new policy, will I get any benefits for having had the existing policy for so long?
—Bhushan Juneja
A standard home insurance policy defines sum assured as the reinstatement cost of constructing the building.
Extending the building increases the cost of reconstruction. So, increased sum assured needs to be endorsed in the policy. You need to pay a proportionate premium for the increased sum assured and the unexpired policy period.
