Should I buy insurance right after acquiring any property?

Such insurance would cover your property against damages from various perils including fire, flood, earthquake and flood.

- Abhishek Bondia

Is it necessary to buy insurance immediately after acquiring property? If so, what factors should I consider when obtaining insurance coverage for my house, and how can I evaluate different insurance products to select the most suitable one?

—Name withheld on request

Yes, you must buy insurance for your house, office or factory, after you have taken possession. Such insurance would cover your property against damages from various perils including fire, flood, earthquake and flood. The good thing is that a number of such insurances are now standardized. For example, for homes, insurers offer a product known as Bharat Griha Raksha policy. These standardized products have incorporated several of the necessary extensions such as earthquake, reinstatement value clause and waiver of under-insurance clause. So, the policy selection and buying process is significantly simplified.