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6 Common Home Insurance Myths in India


myths-surrounding-home-insurance

Where we love is home – home that our feet may leave, but not our hearts

– Oliver Wendell Holmes, Sr., an American poet

A home is one of the biggest investments that you make in your lifetime. It is not only your place of residence but also the place where you and your family members dream of the future together. But what happens if this dream house gets damaged? What happens if the loving memories associated with your valuable possessions go away due to unprecedented events such as fire, theft or burglary?

Having a home insurance policy can give you the required financial protection in case there are any unfortunate incidents that might cause damage to your house and/or its contents.

But people are reluctant about securing their home with an adequate home insurance cover. A few myths that keep them from buying a home insurance policy are:

  • Home loan insurance can cover me for all unforeseen events — In India, you are required to buy a home loan insurance if you have bought your home on a mortgage. But how many of know that the coverage of this home loan insurance is beneficial for the lender not the borrower, i.e., you. The home loan insurance will facilitate your lender in case there are any unforeseen events (e.g. failure to pay the EMI). Thus, it is Home Owners insurance that you need to safeguard yourself in the event of any unfortunate incident.
  • A basic home insurance cover can provide extensive coverage — In order to avoid paying high premium amounts, you might end up buying a home insurance plan that does not provide adequate coverage. For instance, if you live in a flood-prone area, a basic home insurance plan might not cover you for the damages related to water (flood and inundation). You should always read your policy document carefully and purchase a plan that can fulfill your requirements.
  • I don’t need home insurance as I am a tenant — Tenants also need home insurance. This is one of the biggest myth regarding home insurance that prevails in India. However, the truth is that if you live in a rented house, you must get a home insurance plan to insure the contents of the house you live in. If you happen to change your rented place, then you can simply update the address in your policy and continue getting the coverage from the same policy.
  • Home insurance only covers the structure and contents of my home — Homeowners believe that a home insurance policy covers only the structure and the contents of their house. However, there are a range of add-on covers that can enhance the coverage of the home owner’s insurance plan. For instance, a homeowner can opt for loss of rent add-on cover with his/her comprehensive home insurance plan. This cover can indemnify the amount lost in case when the rented property is destroyed due to any perils and the tenants had to vacate the property resulting in loss of rent.In fact, tenants can also opt for an add-on cover like ATM withdrawal Robbery cover that can compensate them for the amount lost in case they get robbed right after they withdraw money from the ATM.A few other add-on covers available with Bajaj Allianz’s home insurance policy are:
    • Temporary Resettlement cover
    • Key and Lock Replacement cover
    • Lost Wallet cover
    • Dog Insurance cover
    • Public Liability cover
    • Employee’s Compensation cover
  • Claim settlement process is complicated — If you have submitted the proposal form cautiously along with the correct documents, then the home insurance claim settlement process is a cakewalk. In fact, with technological advancements, you can now file your home insurance claim online.Check out our online claim portal to easily file your home insurance claim.
  • Premium increases for every claim registered — Filing a single claim will not increase your premium amount, but if you file multiple claims in the policy year, then there is a chance that your premium cost might increase. Therefore, a better idea may be to use the deductible and file a claim only if the amount is very high.

We hope that we have debunked your myths about home insurance and that you will soon opt to purchase a home insurance policy suitable to your needs.

Read more about home insurance on our blog – DemystifyInsurance.

You can also check out our Insurance blog, where you can get answers to your queries about home insurance.

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Published on:31 Jan, 2019

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