21st July 2024

5 Common Home Insurance Myths You Need To Stop Believing Now

As a homeowner, you would agree with the fact that buying and maintaining property is not cheap these days. Your home loan probably takes a chunk out of your monthly salary. Yet, this is one payment we do not mind making, for a home is much more than its contents. It is the abode you share with those you love, where you make memories and treasure moments of happiness.

Any kind of damage that occurs to your home can thus, leave you emotionally and financially devastated. The best way to stay secured against losses due to unforeseen events if by having a home insurance policy in place. This policy will cover you against damages that your home sustains from natural disasters and man-made calamities. This kind of coverage can truly take a huge weight off your shoulders. 

Inspite of the obvious advantage of having home insurance, many people still seem to lack this coverage. This gap in insurance could possibly be blamed on the presence of many myths that stand between homeowners and the insurance they need. In this article, we highlight 5 common home insurance myths that you must stop believing now. 

Myth1: Home insurance only covers content and construction, not people

Fact: Home insurance plans offer personal accident cover too. Many home insurance policies cover you for death and disability as well as offer benefits such as loss of job benefit and ambulance charges. Furthermore, your home insurance policy usually also covers you for third-party liability in cases of accidental injury or death suffered by other people on your property. 

Myth 2: Filing a home insurance claim is complicated

Fact: If you need to make a claim on your home insurance policy, all you need to do is call up your insurance company on their toll-free number and follow the steps they instruct you to take. Leading insurance companies have very simplified procedures for claims; most of the documentation can be submitted online.  

Myth 3: Tenants cannot buy home insurance

Fact: Tenants can also buy home insurance in India. In fact, it is advisable for all tenants to have home insurance to secure the contents of their home, such as jewellery and appliances. Your policy will also cover you if you owe the landlord anything for accidental damages to the house. Even if you change your home, you can simply inform the insurer of your new address and continue to enjoy the coverage of your plan at your new flat. 

Myth 4: Home insurance also covers your entire home loan

Fact: Home insurance policies are designed to cover your home’s structure and contents. Your home loan needs to be covered by another policy called home loan insurance which is an entirely separate product. However, your home insurance plan might cover you for any EMIs payable towards home contents – such as electronic appliances – in case you are unable to make these payments due to unforeseen circumstances. Do note that this coverage for EMIs exists for a limited period and may vary between insurance providers.

Myth 5: Home insurance is an unnecessary expense

Fact: Your home insurance policy covers you against losses that can arise from natural calamities such as floods and earthquakes as well as man-made calamities such as burglary. Most home insurance policies cover household appliances, electronic devices, jewellery, sanitary fittings, and even artwork. Best of all, home insurance premiums are not too expensive. Considering the extent of coverage enjoyed, the cost of buying home insurance is a small price to pay for true peace of mind.