Every person dreams of buying a home for themselves. It is a place where you can relax after a hard day’s work or a place to channelise and rejuvenate your creative juices.
While there is more awareness about life or health insurance, the same is not the case for home insurance plans. Moreover, there are a few misconceptions that surround it. Let us look at five such popular myths that you definitely should not believe –
#1 Home insurance is not required for rented spaces.
While every tenant may argue that they do not need to insure a rented space, it is always beneficial to have one. It is the responsibility of the owner to avail insurance for their house. But, home insurance plans cover not only the structure, but also the contents of the house. In case you live in a rented apartment, you can avail a home insurance to secure your personal belongings. Such content insurance plans are not limited to a particular geographic region. You can verify its coverage with your insurer.
#2 Home insurance is expensive.
The increasing cost of living is making it expensive to avail a home insurance cover. This is a common complaint, but the truth is that home covers are available at affordable prices too. Moreover, the price you pay towards premiums is nominal against financial burden that would arise if your home and its contents are damaged. A home insurance premium calculator can come handy to get affordable coverage options for your beloved house. In case you are tight on your budget, you may choose to insure limited but essential items.
#3 Opt for lower coverage to keep your premiums in check.
As you decide to opt for a lower amount of coverage, it defeats the purpose of buying home insurance. Limited coverage will not guarantee financial security for the entire amount of loss. You might need to bear the loss and can have a financial setback too. Thus, it is advisable to have sufficient insurance coverage while balancing premiums according to your requirements.
#4 Contents of the house are not covered under home insurance.
The reality of this myth is your contents are also included under home insurance coverage. The policyholder needs to opt for content coverage too, and the contents present at the time of availing insurance policy are covered under the policy. But remember, any damage to the furniture due to termites or other similar reasons is not included. Similarly, the breakdown of appliances due to mechanical or electrical reasons is excluded.
#5 Home insurance protects only against natural disasters and not rarely occurring contingencies.
Natural disasters like storms, cyclones, typhoons, floods and more are included under the scope of your home insurance policy. But apart from natural disasters, man-made perils are also included. Any burglary, fire, theft is also covered under a home insurance policy.
These policies are customisable to include different perils for an additional premium. The specific list of inclusions and exclusions is available at the time of purchase.
These are some of the myths that you might have come across while learning about home insurance. Don’t let these myths get in your way to have a secure and reliable coverage for your home. After all, home is where the heart is. Make sure you review the coverage of your policy at each online policy renewal to get the most out of it.