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Bursting Myths of Home Insurance in India

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Defining Home Insurance -

Home insurance provides policyholders with coverage should they incur any losses and / or damages within their residence in addition to their furnishings and other assets in their possession. The aforementioned damages include those pertaining to the residence in question’s interior, exterior as well as personal assets. Accidents and injuries occurring within the home or on the property are also accounted for under this form of property insurance. This, however, depends upon the liability coverage selected by the policyholder. In the event that a homeowner makes a claim owed to any of the previously mentioned forms of loss and / or damage, they are expected to pay a deductible to their home insurance provider. Deductible here refers to the percent or amount of expense incurred by the insured. Ordinarily, most home insurance policies do not account for loss or damage owing to acts of war or acts of God.

Why is Home Insurance Important?

Home insurance is of utmost importance as it protects the policyholder’s physical structure of their home in addition to those elements that constitute their compound. Compounds here include the policyholder’s garage, shed, deck, and even their fence. By paying a premium, homeowners can gain access to special policies which cover their technological gadgets and pricey home appliances. This is important as it’s not just the building one lives in that is costly to repair but related furnishing costs are just as financially burdensome. Should a home be damaged or incur losses, accounting for these shortfalls can require significant sums of money.

Debunking Common Home Insurance Myths 

There exist a wide variety of myths pertaining to home insurance that can prevent individuals from wanting to avail of these policies. Below, some of the more popular myths have been debunked such that readers gain confidence in investing in a home insurance policy.

• Home insurance only provides coverage for building repairs 

  Contrary to popular belief, home insurance provides coverage that extends beyond providing financial security for the physical structure of one’s home alone. Instead, it also takes into account and provides coverage for lost or damaged goods that lay within said home such as appliances and furniture. That being said, it is important to note that certain possessions like jewelry are provided with coverage up to a certain limit alone

• Home insurance plans are too expensive

  Those seeking to avail of home insurance should not get dissuaded by the idea that home insurance policies are too expensive as they are actually quite affordable. Furthermore, premiums on a home insurance plan can be lowered by installing safety mechanisms into one’s home apart from raising the deductible paid by the policyholder i.e., the amount or portion of potential costs associated with damage or loss that are borne by the policyholder themselves.

• Claims cannot be made within times of crisis

  The process of filing a claim in the midst of a crisis pertaining to your home is actually a straightforward process. Field offices are located in disaster-prone areas by insurance providers such that claims can be made via a phone call. Moreover, forms are stored digitally such that any damages incurred by the office itself don’t affect the ability to make or receive a claim. With the aid of remote technologies, insurance companies can assess damages with ease and efficiency and in some cases be lenient with the protocol in place such that settlements can be made at a fast pace.

• Insurance provided by an existing home loan is sufficient 

  Although some home loans may provide some amount of insurance pertaining to the home in question, more often than not, this amount is limited and basic in its coverage and therefore, should not be relied upon exclusively.

Conclusion 

By availing of home insurance individuals can rest easy knowing that they have financial coverage should they experience any loss or damage taking place within their home.

Disclaimer:  The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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