Home Insurance is a fairly common type of insurance. Yet, most people have trouble clearly understanding its workings. As a result, they end up miscalculating their expenses or purchasing a plan that is not best suited for them. With certain insurance providers overselling their products, people often have the misconception that their plan will protect them against any and every loss or liability occurred to the property or its belongings. But, the truth is that even with a comprehensive and exhaustive cover, the plan is bound to have some exclusions and restrictions that you will have to factor in.
Before you apply for Home Insurance, take a look at this blog, where we help you debunk some of the common myths about Home Insurance.
Extent of Coverage:
While many articles tell you that Home Insurance protects your property and the belongings in it, they often fail to tell you that one of the most important aspects of home insurance is third-party liability. Third-party, basically helps you and protects you in case you are being sued or threatened for inflicting damage on the third party’s property or injuring them. Sometimes, home insurance policies also cover the living and food expenses if your house becomes inhabitable due an unfortunate event. Check the extent of coverage and what’s included or not in your policy.
Assured Protection during Vacation:
Often people assume that your property and its belongings are protected or are covered by your policy especially if something were to happen while you are on a vacation. With that being true to an extent, your insurance providers expect you to take all the possible precautions in order to help protect your home and its belongings. This includes switching off or disconnecting all your power cables, taking care of your leaky faucets, etc. You are expected to follow through on all the precautions as listed in your policy in order to claim your coverage, including asking a trusted friend or neighbour to keep an eye on your property while you are away. Without these precautions having been taken, your policy may not cover any losses.
Restoration or Replacement Expense:
Most of the time people assume that the insurance provider will pay for the expenditure to replace all your belongings in the property. But, in reality, most of the policies do not have this option at all. If the coverage is a part of your policy, your insurance provider will only pay for the current value of your property and its belongings and not the purchased value. So, you will have to be prepared to shell out some money to cover your expenses for replacing or restoring your home and its belongings after an unfortunate mishap.
Protection against Termite Attack:
It is natural for any building with wood or wooden materials to be an easy target for a termite attack. The risk of termites is higher if the property is left unmaintained for too long, especially during winter or rainy seasons. Despite continuous maintenance, there are possibilities for a termite attack and when attacked, termites eat away all your wooden materials and property, making it impossible to reuse or salvage it. Restoring such damaged wooden fixtures or items can be not only difficult but also expensive. It is therefore advisable to get your property cleaned regularly and checked by pest control professionals to avoid such circumstances rather than expecting your insurance provider to pay for it. The insurance provider would usually check if you’ve followed necessary precautions before approving any claim.
Though most of the insurance policies protect your home against natural calamities, most policies exclude floods and earthquakes as a part of the policy. If your property is not in a flood or earthquake prone region, it is unlikely that you have this as a part of your policy coverage. It is unfortunate that it is not a basic addition to your policy like other mishaps. So as homeowners, it is your responsibility to protect your home and tend to leaky pipes or drain blockage at the earliest to be on the safer side. If you are from a flood prone area, you should definitely have a flood plan as a part of your coverage with additional costs factored in.
These are some of the most common myths in Home Insurance. While buying a home insurance plan has become really simple, it is a must for home or property owners to go through the policy thoroughly and research as much information as possible to have a clear understanding of it, before you go ahead and pay for one. Losing a home that you built with love can be very difficult to cope with, and you don’t want the additional burden of having to deal with losses and finances. Take care to bust some myths or misconceptions that come in the way of your understanding of how home insurance works and you will be better informed to take the right decisions to protect your beloved home.