Five Myths of Home Insurance Policy
When it comes to getting house insurance policies, people have several misconceptions arising from quite a few myths linked to the same. Whenever you buy house insurance online, you should compare plans based on multiple parameters before taking a final decision. However, property insurance is a must in today’s times since it safeguards you and your family against any kind of natural calamity or destruction to the structure and everything that it contains. However, there are quite a few myths surrounding any regular home insurance policy that need to be de-mystified by all means.
These should be kept in mind by you when you buy home insurance. Here’s explaining 5 myths that are tied to home insurance plans-
- Full Coverage for alternative accommodation-
In case your home has suffered from serious damage and needs repairs for a prolonged period of time, during which you cannot inhabit the same, your insurer may temporarily arrange for your accommodation at a service apartment or hotel. However, many people make the mistake of assuming that all such costs are covered by the insurance company as part of your policy. Read the fine print carefully to see what is covered and excluded in your home insurance policy. If you are not careful, you may have to pay for alternative accommodation which may burn a hole in your pocket. It is a myth that the insurance company will keep supporting you for an unlimited time period when it comes to alternative accommodation.
- Renovation, replacement and restoration costs-
It is a myth that home insurance providers will replace all belongings that have been destroyed in the house including appliances and other items. However, you should know that most insurance plans do not have such options. In case you do not incorporate such riders early on in your home insurance policy, there will be losses taken into account for the worth of items prior to any accident or damage. You will finally have to accept a depreciated valuation which is lower than prices of new items in comparison. Be careful in this regard.
- Protection from Floods-
It is another myth that home insurance policies offer coverage and ample security for flood based damages along with other natural calamities like earthquakes. Indeed, floods may take place for multiple reasons including storms, drainage issues, ruptures and breakage in key water pipes and more. Only a few home insurance companies offer flood coverage to buyers. In case you are living somewhere where there is a risk of floods, you should always pay extra to get a flood plan in place or any add-on rider that suits your needs.
Termites can damage any structure that has wood if you are not careful. This can specially happen in winters and termites may eat into the wooden foundations of your home. They can multiply in large numbers and getting rid of them is a menace to say the least. This may lead to huge costs annually and it is a myth that such costs are covered by home insurance policies. As a result, you should always get your home checked and termite-proofed by expert professionals instead of depending on your insurance company to accept these claims.
- Loss Evaluation-
Whenever you file any home insurance claim, the provider will be sending you an evaluation tool in order to assess the extent of damage and the ways to fix the same. A value will be estimated accordingly based on aspects like the maximum coverage amount and so on. However, you do not always have to blindly go by what they are offering. You should always negotiate for a better value if you feel that is right. Keep all bills and receipts handy along with photographs of your items.
Whenever you are opting for home insurance, make sure that you read the terms and conditions carefully. Do not give in to such myths since they will leave you high and dry in the future.