scorecardresearchHome insurance: Busting 6 key myths associated with it

Home insurance: Busting 6 key myths associated with it

Updated: 17 Feb 2023, 10:52 AM IST

There are a number of myths linked to home insurance relating to add-on covers, exclusions, and whether tenants can take a home insurance policy

: There could be an exclusion of floods in some of the insurance policy you have taken

: There could be an exclusion of floods in some of the insurance policy you have taken

Taking a home insurance policy is indispensable to minimise the risk caused by unforeseen circumstances such as a natural calamity or a robbery, etc. Any fire, burglary, theft or even earthquake can ruin your abode you built after years of hard work and dedication. But to avoid all that to happen, it is vital to take a home insurance policy. Read here to know why you should take a home insurance policy.  

But before you take this much-needed cover, you should remember that there are an array of myths that some of the policy holders have. Here we give the lowdown on some of them in order for policyholders to take an informed choice.

These are some of the common myths that are believe to be true about the home insurance policy in India:

1. Price of items at home: Some policy holders believe that the market value of goods and equipment at home is covered in the home insurance policy. However, it is far from true. The insurance company usually gives the depreciated value of the items and not their market value.

2. Add-on covers: There could be a situation where a house becomes completely unusable. So, the policy holders might believe that the insurer doesn’t cover the cost of hotel or any temporary accommodation during the time the house is being restored to its original form or shape. 

But the coverage, at times, does cover this reimbursement as well. In some cases, it can be bought as an add-on cover, too.

3. Floods can be exclusion: Although some of the home insurance policies cover floods as well, but not all of them do. So, it is important to apprise yourself of the finer details of your policy and ensure that floods are covered in the policy.

4. Coverage against termites: When the house has a lot of woodwork, then the damage to some of the assets in the house can take place because of attack from termites. However, such damage is not covered in the home insurance policies.

5. Receipts against assessor’s value: When you make a claim of a home insurance policy, then the insurer sends an assessor to value the depreciated prices of items at home that were damaged in the fire, or any other casualty as the case may be. But when you don’t agree with the valuation made by the assessor, you can counter them by your own proofs via receipts of items which were lost.

6. For tenants as well as for owners: Some house dwellers believe that they don’t need a home insurance policy because they are tenants. But the tenants, too, are entitled and even advised to buy a home insurance policy to cover the contents of the house. And when the change the house during the policy, they only need to update the address.

Raising a home loan.
First Published: 17 Feb 2023, 08:02 AM IST