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5 Common Misconceptions about Home Insurance

27 October, 2015

Protecting the home you live in is obviously a priority and most of us safeguard this interest by securing insurance. In addition to the fact that your home is probably your most valuable physical asset, it also houses various valuable possessions including your jewelry, appliances, and furniture.

While most of us understand the importance of insurance, and many purchase home insurance, most people have little understanding about the benefits and the limitations of home insurance.

Before you purchase yourhome insurance plan be sure to rid yourself of these common misconceptions.

1. Evaluation of Home

It is a common misunderstanding that while evaluating your home for insurance, its market value is considered. In fact, it is the cost of reconstruction that is taken into account for determining your premiums.

2. Claim Process

Since home insurance claims may often amount to large sums, it is assumed that the claim settlement is a complex and lengthy process. In reality, with the right documents, claiming reimbursements and cover on your policy is quite easy and seldom involves any hassle.

3. Ownership of Home

People are also led to believe that insurance can only be bought by those individuals who own a home. On the contrary, you can also buy home insurance if you live in a rented home. In such cases, insurance is offered for household contents and appliances.

4. Single Policy

A popular misconception among homeowners is that a single policy covers their homes as well as the contents of the home. While home insurance covers the physical structure, it doesn’t necessarily cover the valuables stored within.

Royal Sundaram’s Home Content Insurance provides complete coverage for the possessions within your home. You can easily purchase this home insurance online and can enjoy a stress free move into your new home.