There are different types of insurance policies available, and home insurance is one of the most widely sought after ones. Even though it is one of the most commonly purchase insurance policy, customers still make a lot of miscalculation at the time of purchasing the same. Most of the customers believe that the home insurance policy purchased by them will cover almost each and every kind of damage. Some policy owners also believe that their home insurance package does not cover damages caused by ‘act of God’.
So, there are many misconceptions and myths associated with home insurance policies. Unless and until you know the truth, you would not be able to buy the best policy according to your requirements. Hence, let us throw some light on the five most common myths related to home insurance.
- The process of settlement is a tiring one
A lot of people shy away from purchasing a home insurance policy just because they think that the process of claiming is quite a cumbersome one. Well, the truth is completely opposite. The fact is that if you follow the right process, the claiming part will become extremely easy for you. When you insured property gets damaged due to some natural calamity, the first thing you need to do is inform your insurance company about the same within the stipulated time period (mentioned in the policy papers).
As soon as the insurer gets a call from you, they will send an agent from their end. The agent will carry out a survey of the amount of damage that has occurred to the property. After the agent files the report, the insurance company will inform you about the value of the claim which you are entitled for as per the policy. In the final process, you will be asked to produce a few documents. Nowadays, the process has become smoother and quicker with the inclusion of technology. The exchange of documents can be done electronically.
- Insurance coverage amount is directly proportional to its premium
Well, this is another myth you need to stay away from. If you are paying low insurance premium for your home insurance policy, it does not mean you will get low coverage too. Insurance companies often offer various sorts of discounts on the premiums. For example, when you equip your house with safety devices like burglar alarm, smoke detectors, fire alarm, etc. then you become eligible for some discount. This is how the premium goes down, without lowering down the coverage amount. So, next time you come across a home insurance policy with low premium, do not discard it right away.
- Act-of-God incidents are not included in the policy
There is a lot of confusion regarding what kind of incidents are covered under the home insurance policy. Many people think that natural disasters are not covered. Nevertheless, mishaps like earthquake, fire, flood, etc. are adequately covered by most of the insurance policies. In fact, it is a mandatory thing for most of the policies. But, it is also the responsibility of the home owner to carefully go through the details mentioned in the policy documents. One should consider buying a policy only after he/she is thoroughly satisfied. In this regard, comparison can help you choose a better option.
- You need to own the home to get it insured
This is another misconception that people have regarding home insurance policy. As a matter of fact, it is not necessary for you to be the owner of the house (or a part of it) in order to get it insured. For example, if you are living in a house as a tenant, you can definitely purchase an insurance policy that covers your personal belongings in the house. The best part is that even if you change your home, your insurance policy will still work. All you have to do get the approval from the insurance company regarding the change of address.
- Burglary or robbery is not covered
People spend good amount of money on decorating their home with valuable stuffs. Some house owners also keep precious items in their house, such as expensive paintings, jewelleries, artefacts, costly gadgets, etc. In case of robbery, you can certainly claim for the losses incurred by you. All sorts of damage will be covered by the insurance company. But, it is important to make sure that you include only the valuable items in your insurance policy. Otherwise, you will end up paying high premium amount unnecessarily.
So, those were the five most common myths related to home insurance policies. There are many more misconceptions associated, and as you discuss more and more with the insurance agents, things will become clearer for you. For this reason, do not shy away from asking questions to your agent.