Clearing 6 myths about home insurance in India.

Home insurance in India isn’t as popular as other insurance policies. In fact, very homeowners have an insurance plan for their homes. One of the reasons behind this phenomenon could be the misconceptions that have clouded the air around this protection instrument. Keeping this in mind, the following article will attempt to bust 6 of the common myths that have marred the image of home insurance.

1. Home insurance is expensive.

One of the most wide-spread myths about home insurance in India is that it is expensive. However, this actually very far from the truth! First, you need to know that most home insurance plans cover the cost of construction. So, if you have a 1000 square foot home, and you assume the construction cost as Rs. 1,000 per square foot, the cost of construction comes to Rs. 10 lakh. Plus, say you have valuable such as home appliances, jewelry, etc. in your homes that are valued at Rs. 5lakh – then you need a sum assured of around 15 lakh.

Most insurance companies should provide you a plan that offers that level of cover from a premium of just Rs. 2,500 per month.

2. Acts of God aren’t cover by home insurance in India.

When you decide to buy a home insurance plan, you will have to choose sections of cover you want. Common sections include cover against fire and other perils. But if you opt for a comprehensive house insurance plan, acts of god such as flooding, earthquake, etc. are covered under the policy.

3. It is a hassle to get a claim settled.

Many potential customers think it’s a hassle to get a claim settled. However, the process is actually quite simple – in case of an eventuality, simply contact your insurer and they will send a surveyor home. He/she will cross check the information, take photographs and report back. As far as process is concerned, the formalities just about end there.

It’s worth remembering that all insurance claims can seem like difficult tasks. Considering that, home insurance is no different or any more difficult.

4. Home insurance in India only cover the structure of the home.

Again, this is miles away from the truth. Most insurance policies also cover the content of your home as highlighted in point 1. Some insurance policies also provide liability cover that indemnifies you from damages caused to a third party as a result of your property. This can prove to be very handy in situation such as a call collapse or if someone is injured in your home.

5. You cannot buy home insurance if you don’t own a home.

This keeps renters away from such plan even though this is just a misconception. You can opt for content only cover if you are living on rent and have valuables that need financial protection. You can also take structure and content protection if you’ve given one of your properties on rent.

We hope this article will help you look at home insurance in India in a new light. Good luck and all the best!

HI this is shruti and i am Working as a third party for different companies and help customers or clients to understand them about different types of insurance online for their business or personal need.