What is home insurance?
In the event that the house’s structure is physically harmed or destroyed by any unforeseen hazards, this provides protection. It covers loss or damage brought on by both natural and man-made disasters.
Currently, there are some myths surrounding home insurance, which we strive to dispel in this article:
- Myth 1: Hand-of-God incidents are not covered by home insurance
Most people believe that natural disasters are not covered by home insurance. However, the first component of the majority of home insurance policies provides extensive coverage for disasters like fire, earthquake, flood, and other risks. This is a required benefit for the majority of the plans. A certain type of natural disaster may be covered by some insurance companies, while it may not be by others. Before purchasing a policy, comparing them is usually a smart idea. It is crucial to carefully read the policy documents in order to comprehend what is covered by the policy. One should only decide to purchase the coverage after carefully reviewing its terms. *
- Myth 2: The claims settlement procedure is cumbersome.
Many people hesitate to get home insurance coverage because they believe the claim filing and settlement procedure to be inherently complicated. Actually, it is not that difficult and only requires that you follow a specific process. According to the terms of the policy, notice must be sent as soon as possible to the specific insuring firm, either to the local office or the main office, when the insured’s property is damaged as a result of a calamity. For its part, the insurance will dispatch a representative to assess the property of the policyholder for damage. After the agent submits the report, a determination is made as to the amount of the claim that is allowed under the terms of the policy. *
Before beginning the process of paying the claim, the insurer may want specific documentation from the insured.
- Myth 3: Insurance coverage is limited if insurance premiums are low.
Home insurance coverage and the house insurance cost of the premium are not necessarily inversely related. It’s likely that the insurer would provide concessions on the cost if the house being covered already has safety features like fire alarms and burglar alarms.
Making wise choices while purchasing insurance will assist in lowering the premium cost. For instance, a cover for riots and terrorism may not even be necessary for calm, peaceful areas. The risk to the insurer is minimal because these natural disasters don’t happen frequently. As a result, the premium will be quite minimal. *
- Myth 4: A home must be owned in order for it to be insured.
Many times, people believe that in order to insure their home, they must actually own it. That is untrue. The fundamental framework of the home that is being rented out can be insured by the homeowner.
A tenant can always purchase insurance for their personal property while living there. The insurance can authorise the change of address if they decide to move. *
- Myth 5: Burglaries are not covered
Fire and burglary insurance cover loss or damage brought on not only by natural disasters but also by burglars breaking into the property or even just attempting to do so. Jewellery, paperwork, gadgets, and other valuable individual objects can all be insured. However, only assets may be insured if you want to avoid paying a disproportionately high price. *
It is essential to carefully read the policy document before purchasing home building insurance. If the policy clause seems to contain any uncertainty, clarifications may be requested. It is now straightforward to purchase insurance coverage online, making it simple to compare the different policies before making a decision.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.