5 Common Myths of Home Insurance that must be Debunked

Unlike auto insurance, home insurance is not required by law. In fact, home insurance coverage doesn’t feature in the priority list of many home owners in India. When it comes to protecting their financial interests, most people tend to overlook the significance of having a home insurance cover. Considering the fact that a disaster can strike any minute, ignoring home insurance may prove to be a costly mistake.

Here are five of the common myths attached to home insurance:

Myth 1: A home should be insured on market value

The market value of a home is determined by a number of factors including the value of land, neighborhood and the view of the surroundings. If you insure your home on market value, you may end up spending more money than required. A home should be insured on replacement cost i.e. the cost to rebuild or replace it, and not on its market value.

Myth 2: Every type of disaster is covered

Many people wrongly believe that a home insurance cover provides protection against all types of calamities. It is important to understand that not all nature and weather-related damages are covered. If you want protection for damages from flood or earthquakes, you may have to opt for extra coverage. Wind, lightning, fire and hail damages are usually covered in a home insurance policy.

Myth 3: Every personal item is covered

Although, a home insurance cover provides protection for your personal assets, there are limits and restrictions on the number of items. To cover highly expensive items such as jewelry, art pieces and appliances to their actual value, you may have to opt for additional coverage.

Myth 4: You can get a cheaper home insurance cover for older homes

Older homes are not cheaper to insure. Insurance companies take into consideration many factors while determining the repair cost of a home. An older home may have been constructed using old construction techniques. This may make repairs more costly. As a result, some companies may charge higher premiums for insurance cover for an older home.

Myth 5: Medical expenses are covered

A home insurance cover doesn’t cover medical expenses in case of a

personal injury. Some policies may cover medical expenses for a guest injured in your home. However, for personal injury cover, you’ll have to take a health insurance cover.

Opting for a home insurance cover can go a long way when it comes to safeguarding your financial interests in case of calamity. IFFCO-Tokio General Insurance is one of the most reliable companies that offer home insurance cover to the home owners. With its best home insurance plans, customer-friendliness and transparency in services, IFFCO-Tokio aims to meet all the home insurance requirements of it clients. It also offers motor insurance, health insurance, travel insurance other types of insurance covers.