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Common Misconceptions about Home Insurance

Posted by Royal Sundaram on 27 Oct 2017

Common Misconceptions about Home InsuranceTo own a home is a milestone in most people’s life. They toil hard, save, and make a lot of sacrifices for years before they are able to afford a home. However, certain homeowners do not buy home insurance. Misinformation often causes misconceptions and therefore the lack of insured homes.

 

It is time these misconceptions are rectified. Here are six such rectifications.

 

  1. It Is Expensive

This is one of the biggest misconceptions which discourages people from insuring their home. These plans, on the contrary, are quite affordable and will not put a big dent in your annual finances. Just remember to pick a plan which insures your home building as well as the contents within.

 

  1. Natural Calamities (Act of God) Isn’t covered

A popular misconception. Home insurance plans do cover natural calamities. In most plans, the first section covers fire and allied perils. They include:

  • Lightning, Explosion
  • Storm, Typhoon, Tornado, Flood
  • Earthquake, Landslide
  • Bush Fire

 

  1. Tenants Cannot Insure Their Homes

As a tenant, you can purchase an insurance plan to insure the contents within the home. After all, they are of vital importance. If you move, you can always get the address changed via an endorsement. A home owner while renting out can insure the structure of his or her home.

 

  1. Evaluation

Most people carry a misconception that insurance firms consider market value while evaluating homes. The reality is that the cost of reconstruction is taken into account, excluding the land value.

 

  1. Burglary Is Not Covered

Nearly all insurance firms provide a cover against loss occurring due to burglary. The cover pays for expenses which help prevent future loss due to burglary. These expenses include CCTV camera and safety door installation, alterations/repairs to door and windows.

 

  1. Claim Process Is Complicated

Thanks to insurance being a jargon heavy industry, this misconception has led to many people not insuring their homes. The claim process, in fact, is pretty simple. All you need to do is contact your insurance firm to file a claim, they send an executive to surveys the loss, you submit the requisite documents, and once the claim is approved, it is settled in a short time.

 

Read more about home insurance, talk to people, and analyse the facts. Do not let misconceptions and misinformation stop you from insuring your home.

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