Debunking Different Myths Related to Home Insurance

August 16, 2023
No Tags Assigned to this Post

Table Of Contents

If you have just experienced the thrill of buying your first new home or are planning to do so, then you will surely have been through a whole wave of paperwork, from legal documents to financial filings. One of the major aspects of home ownership you will be familiar with is home insurance. To keep your home protected from any unfortunate occurrences and mishaps should be among your top priorities, whether you are looking to own a 1 BHK flat in Ghatkopar or any other area. However, even established homeowners often have massively wrong impressions about the concept of home insurance, what it provides coverage for and what it does not. We at L&T Realty have listed a few of the most common ones to clear these muddied waters and help you make a well-informed decision.

Before You Insure, Ensure: Busting Common Misconceptions About Home Insurance

Myth 1: Home Insurance Covers Only Property Structure
Fact: Many homeowners are under the false impression that a home insurance policy will only provide coverage for the actual structure of the house, and not the contents which are inside the property itself. For this reason, they can be a bit skeptical about certain home insurance options, as they believe coverage will not be provided for their belongings. However, home insurance can include coverage for both the structure of the building in question, as well as the contents which are present within the property – regardless of whether it’s a 3 BHK in Parel or any other property. While there might be certain insurance coverages which may not include contents of the home, home owners can certainly opt for insurance packages which include coverage for both structure as well as contents.

Myth 2: People Who Rent Don’t Need Home Insurance
Fact: This is another highly prevalent misconception amongst residents across India, and it can prove to be a very expensive mistake to make. This seems to have become such a common misconception as tenants believe that the insurance would be unnecessary as they do not own the property that they are residing in. However, a major reason why home insurance is just as important to tenants is covered in the previous point. A renter should get home insurance as it would provide coverage for their belongings and other contents within the residence that they are renting. A renter can insure the house they are living in, and in case they shift residences they can just change the address in their policy.

Myth 3: You Are Not Insured for Incidents Such As Burglaries
Fact: Homeowners often believe that home insurance will only cover natural occurrences and accidents, and will not offer any form of coverage for incidents such as break-ins and burglaries. However, home insurance can also cover for any losses and damages that may happen due to burglaries. This can include the loss of various valuable belongings such as electronics, jewellery, or even crucial documents, as you can actually insure all of these types of items. In fact, many insurance providers often include coverage for valuables such as jewellery as part of their home insurance and renters insurance packages. But if they do not then you can be insured for jewellery and other valuables as a separate package.

Myth 4: Home Insurance Is Guaranteed To Cover Acts of God
Fact: It is a relatively common misconception that most home insurance packages will typically include coverage for Acts of God. In reality, while the majority of home insurance packages provide coverage for natural calamities such as windstorms, hail and fire, most of them do not include protection for damages which have occurred due to Acts of God such as floods and earthquakes. Therefore, if you reside in an area which may be more prone to such natural incidents than others, then it would certainly be wise to try getting additional coverage for damages that may be incurred due to such circumstances, as there is a good chance that you are not insured for them. Depending on the insurance provider, it is also possible for you to get an add-on of coverage for temporary resettlement to your insurance package. Such an add-on cover can help you by bearing the cost of temporary accommodation following a flood or quake, while repairs and restorations can proceed on your residence.

Myth 5: The Process of Making a Claim Will Drag On
Fact: Home owners tend to assume that making a home insurance claim can be a long-drawn and tedious process, when it actually does not have to be so. In fact, a lot of the issues that may come up which cause the delay of an insurance claim largely stem from a lack of clarity with regards to the policy that has been purchased. The process can even drag on if the applicant has happened to submit important documents which contain inaccurate pieces of information, when they were at the point of buying the insurance package. When there are not any discrepancies in such documents and the claimant has a good understanding of the insurance package they have opted for, then there is a much lower chance of the claims process dragging on.

This should go without saying, but when you wish to apply for home insurance it is vital that you have a clear idea of what various coverages are included in home insurance packages. Looking for the package that suits your situation and needs best will prove to be a lifesaver in the long run, whether you live in a 2 BHK flat in Mulund or any other area. If you have doubts about insurance packages, it is important to ask your insurance provider or broker, as getting as much clarity as possible will contribute to making a well-informed choice.

Disclaimer: Stock image used for representational purpose only.