Five Home Insurance Myths Debunked

Home is where the heart is they say and there is no other place quite like it. Buying a new house requires a significant chunk of your savings and many of us do not realise the importance of protecting it with insurance. Whether you own a house or live in a rented apartment, make sure that your property is safe and sound.

Investing in a good home insurance policy can protect your home from many threats. Events such as burglary, fire, earthquakes, or riots can cause significant damage to your house. Therefore, do not wait for something like this to happen and buy an insurance policy that efficiently protects your home from such disasters.

Here are some myths that stop people from purchasing an effective home insurance policy.

  1. It is for homeowners and I am a tenant

Before moving into a house, remember to ask the landlord if the house is insured with a householder policy. If the structure is not protected by an insurance policy, you, as the tenant, can get the contents inside the house insured. This would protect things such as home appliances, clothes, jewellery, etc.

  1. It is expensive

This is one of the most major misconceptions that people have about home insurance. Since the premium on any insurance is generally based on the sum insured, most people believe that houses, which can cost quite a fortune, demand whopping premiums if insured. However, this far from the truth. You could compare home insurance policies and receive quotes online using the home insurance premium calculator to understand the benefits they offer as well as the cost of the premium.

  1. It only covers damages caused by natural calamities

Home insurance not only protects you from damages caused by natural events such as earthquakes, typhoons, etc., it also protects your house from events such as burglary, theft, etc. Moreover, home insurance will also provide coverage if your house is hit by a missile during testing. However, it will not protect you if the domestic help was involved in the theft. Hence, it is mandatory that one conducts a comprehensive background verification before hiring any help.

  1. It does not provide coverage against normal wear and tear

Sometimes, a leaking pipe would end up causing damage to the structure of your house as well as the possessions in it. Having a home insurance policy in such cases is advisable as it provides coverage to your building structure as well as the contents of the house. Damages caused due to overflowing water tanks, leaking pipes, as well as automatic sprinkler operations are covered. This would help you save quite a lot of money in repairs.

  1. The insurance should be at par with the market value of the house

Instead of insuring your house for just its market value, you should insure it for the cost of replacement as well. In this case, you would be covered if you were to rebuild the house from the ground up as the construction costs and building material would be covered by the insurance.

Let us now look at some benefits of buying a home insurance policy:

  • It provides comprehensive coverage to the structure of your home
  • You will not be stressed in the case of unforeseen situations as the home insurance will secure you financially
  • Even the contents of your house can be protected with certain home insurance covers

For most people, it takes a fortune and a lifetime to purchase their dream home, so why leave it in the hands of fate? Purchase a home insurance policy that fits your needs today and enjoy a stress-free life.