7 Myths About Home Insurance Busted

Home Insurance

Of all things a person possesses, their house is the most precious to them. Many people work hard to buy a property of their own, and it often takes them years to get one. When something is so precious, why not secure it under good home insurance. Every property is prone to financial damages arising from natural calamities, fire, burglary, etc., regardless of the house size, location, or design. Securing the house under home insurance can cover the owner against potential financial damages.

If you’re ready to extend this benefit to yourself, consider investing in home insurance. To help you pick the best insurance and have clear expectations, we have busted seven common myths about home insurance that usually prevents people from investing. So let’s quickly explore the myths busted below.

Also Read: The Ultimate Guide to Comporta Real Estate

1) Home Insurance is Only for Homeowners

The word ‘home insurance’ makes many believe this insurance is exclusively for homeowners, not tenants. In reality, even tenants can get their temporary residence insured to protect their belongings and expensive items in the house. People who frequently change locations for work can keep the same policy while changing the property’s address every time they shift to a new place. It will ensure their belongings are protected in case of loss due to burglary.

2) Only Damage Due to Natural Calamities are Covered

A common misconception among potential home insurance buyers is that these policies only cover financial damages if the property is damaged due to natural calamities, like earthquakes, floods, etc. In reality, the coverage depends entirely on your home insurance type. For example, if you invest in standard home and burglary insurance, you can claim damages caused to both the property structure and the contents of your home. It is best to read the insurance clauses carefully to clearly understand what is covered and what is excluded.

3) It is Expensive & an Unnecessary Expense

Many people believe they don’t need home insurance because their property is located in a safe space. They overlook the fact that natural calamities, like floods, storms, earthquakes, fires, etc., can arise anywhere. Any property (regardless of location) can get significantly damaged if they occur in high intensity. If you have invested heavily to acquire your house, it is best to get it secured against potential financial damages.

4) Property Structure & Contents are Only Covered

Another commonly circulated myth is that home insurance only covers the property structure and contents. Well, the coverage depends entirely on what you choose. For example, a standard home insurance policy may only cover the property structure and contents, but if you get an add-on, like loss of rent, the insurance can also cover the amount lost if your property gets damaged and is unsuitable for renting. Not all insurers provide the same add-ons, so we recommend finding an insurance provider and policy offering relevant add-ons for extra coverage.

Also Read: Protect your Family’s Future with Insurance. This is how

5) Policies Charging the Lowest Premium are Sufficient

It is the most damaging myth people come across. While the market offers plenty of low-premium home insurance policies, their coverage is also limited in nature. The cheapest policy might not be ideal if you want comprehensive coverage for your house and its content. Always proceed with a home insurance policy offering the required coverage. Choosing the cheapest policy can cost you massive financial strain in the future.

6) Assessor’s Valuation Cannot be Challenged

When home insurance owners file a claim, the insurer sends an assessor to value the financial damage caused due to natural calamities or other events covered in the property insurance clause. The valuation gathered and estimated by the assessor is considered before finalizing the claim disbursal amount.

Many believe that the valuation done by the assessor is final and cannot be challenged. In reality, you can always counter the valuation by providing proof supporting your estimated valuation.

7) A Basic Policy Covers All Your Needs

Some believe investing in a standard home insurance policy can solve their problems. If you think along the same lines, understand that not all policies are designed equally, and their coverage varies significantly. You cannot rely on any standard policy if you own a plush property and want to secure it under extensive coverage. The best way to get the ideal policy is to double-check the coverage, exclusion, available add-ons, etc.

Get Your House Secured Under the Best Insurance

Buying a house requires significant investment. Many even take house loans to fund their homeownership dream. If you purchased your dream house recently, you must get it secured under an ideal home insurance. It will ensure you remain protected financially against huge damages caused due to natural calamities, burglary, and other events explicitly mentioned in the insurance documents.

Many people avoid investing in home insurance because they feel it is an entirely unnecessary expense, and they can do well without it. There are other myths as well that prevent people from buying a home insurance policy. Now that we have busted all the common myths above, you can get your house insured without any doubts in mind.