Five Myths About Home Insurance Debunked

Ever wonder which is worse?

Are you looking for a way to pick up your life after such a devastating earthquake?

The second requires more determination and resilience. This requires patience and, of course, good planning.

It would be devastating to see one’s house fall before their eyes. This would make it even more difficult if the house was not insured.

There are many myths about home insurance. We will attempt to dispel them through this article.

Myth #1: Home insurance does not cover hand-of God incidents

There is a common belief that home insurance does NOT cover natural disasters. Home insurance policies usually cover the first section, which covers mishaps such as fire, earthquake, flood, and other perils. This coverage is mandatory in most plans.

It is essential to carefully read the policy documents in order to fully understand the coverage. You can only buy the policy after you have read the entire policy.

Some insurance companies might cover a specific type of natural disaster, while others may not. It is a good idea to compare policies before you buy one.

Myth #2: Settlement of claims can be cumbersome

People are often reluctant to purchase a home insurance policy because they fear the claims filing and settlement process. It is actually not difficult, and you just need to follow certain procedures.

In the event that the insured’s property is damaged by a calamity or other circumstances, the insurable company must be notified as soon as possible. Notification should be made to either the local office, or to the main office, as required by the policy.

An agent will be sent by the insurer to assess the extent of the damage to policyholder’s personal property. After the agent has filed the report, the insurer will decide the amount of the claim that is permissible under the policy.

Before they settle the claim, the insurer may ask for documents from the insured.

The storage of policy documents has been made much easier by the technology’s gradual and steady improvement. Policy documents can now be stored electronically or in dematerialized format. This is useful in cases where the original policy is lost or misplaced. In such cases, the only question the insurer will ask is when the policy was taken.

Myth #3: Low insurance premium means low insurance coverage

The premium amount and insurance coverage of homes are not always proportional. The insurer may offer discounts on premiums if the insured home is already fitted with safety devices such as burglar alarms and fire alarms.

Making wise decisions when purchasing a policy can help to keep the premium costs low. In areas that are calm and peaceful, a policy covering riots and terrorism may not be necessary.

These natural calamities are rare and therefore the risk to the insurer is very low. The premium will therefore be very low.

Myth #4: To have your home insured, you must own it

People often believe that to insure their home, they must own it. It is false.

The owner of the house can insure the structure of the rental house.

Tenant can insure their belongings in the home they live in. The insurer may approve a tenant’s move to another address.

Myth #5: Burglary is not covered

Insurance policies for home include coverage for damage from natural disasters as well as loss or damage due to burglars breaking into the house.

You can insure individual items of value, such as jewelry, documents and gadgets. The discretion option may be used to only insure valuables. Otherwise, the premium will be substantial.


While buying an insurance policy it is imperative that the policy document is studied thoroughly.Clarifications may be sought in case it is felt that there is any ambiguity in the policy clause. It is easy to compare policies online before making a decision.

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