5 Myths About Home Insurance Demystified

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5 Myths About Home Insurance Demystified
5 Myths About Home Insurance Demystified

5 Myths About Home Insurance Demystified

5 Myths About Home Insurance Demystified, A devastating earthquake or picking up pieces of life after surviving such an earthquake?

Perhaps the other requires more resilience and determination. It also requires the hand of providence and, of course, good planning habits.

It would be appalling to see one’s home crumble before their eyes of them and would be all the more depressing if the house is not insured. 5 Myths About Home Insurance Demystified.

There are certain myths regarding home insurance, and through this article, we try to deconstruct such myths:

Myth # 1: Home insurance does not cover events from God’s hand:

5 Myths About Home Insurance Demystified, There is a general feeling that home insurance does not cover natural disasters. However, accidents such as fire, earthquakes, floods, and other hazards are abundantly covered in the first section of most home insurance policies. In most of the plans, this is mandatory coverage.

To understand what is covered by the policy, it is important to read the policy documents carefully. Only after considering the terms of the policy in detail, one should undertake to purchase the policy. 5 Myths About Home Insurance Demystified.

It is a fact that some insurance companies may cover a particular type of natural disaster while others may not. It is always a good practice to compare different policies before buying one. 5 Myths About Home Insurance Demystified.

Myth # 2: Settling claims is a cumbersome process:

5 Myths About Home Insurance Demystified, Many people shy away from buying home insurance simply because they feel that the litigation and settlement process is inherently cumbersome. In fact, it is not that scary and just has to follow a certain procedure.

When the property of the insured is damaged due to an accident, a hint must be given to the insurance company in question as early as possible, either to the local office or the head office in accordance with the provisions of the policy. 5 Myths About Home Insurance Demystified.

The insurance company in turn sends an agent to investigate the extent of the damage to the policyholder’s property. When the agent submits the report, a decision is made on the value of the claim permitted under the policy.

5 Myths About Home Insurance Demystified, The insurance company can ask for certain documents from the insured before they finally embark on the process of determining the damage.

With the gradual and progressive improvement of technology, much ease has arisen in the process of storing policy documents. Now policy documents can also be saved in dematerialized or electronic format. This helps in cases where the original policy has been misplaced or lost, and in such situations, the only question that the insurance company asks is the date when the policy was taken out.

Myth # 3: Low insurance premium means low insurance coverage

5 Myths About Home Insurance Demystified, Insurance coverage for homes and premium amounts are not always directly proportional. If the home to be insured is already equipped with such security devices as fire alarms and burglar alarms, it is likely that the insurance company will offer a discount on the premium.

Thoughtful decisions while buying a policy will help keep premium costs low. For example, in areas that are mussel and peaceful, a cover for riots and terrorism may not be required at all.

Holiday Home Insurance

As these natural disasters are not very frequent, the risk to the insurance company is low. So the premium will obviously be below.

Myth # 4: It is necessary to own the home to have it insured

It is often the case that people are under the impression that in order to ensure their residence, they must own it. It’s not true.

The homeowner can ensure the basic structure of the house that he rents out.

5 Myths About Home Insurance Demystified, A tenant can always insure the property in the house they live in. If they happen to change residence, the insurance company can approve the change of address.

Myth # 5: Burglary is not covered

Home insurance covers not only damage caused by natural disasters but also damage or loss caused by robbers breaking into the house or even attempting to break in. 5 Myths About Home Insurance Demystified.

Individual valuables such as jewelry, documents, gadgets, and accessories can all be insured. However, estimates can only be used to ensure the valuables, otherwise, the premium will be significantly high.

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