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3 Popular Myths On Home Insurance

Mr. C.S. Sudheer | Updated On Saturday, July 21,2018, 05:12 PM
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3 Popular Myths On Home Insurance

 

 

Cyclone Vardah has devastated Chennai. Thousands of trees have been uprooted. Many huge trees have fallen on cars and houses, completely destroying them. Powerful winds and uprooted trees, have damaged or destroyed houses and property, worth crores of rupees. This is not the first time a natural calamity has struck Chennai. Just last year, many parts of Chennai were completely submerged in flood waters. In recent years, several parts of our country have been struck by natural calamities. There have been floods in Jammu and Kashmir, an earthquake in Delhi and floods in Assam and Arunachal Pradesh.

Natural calamities can no longer be considered, rare and brushed aside. It’s time for you to consider availing home insurance, to protect your house. You can read more on home insurance here. A basic home insurance plan protects the structure of your home, from fire, lightening, storms, cyclones and even an earthquake. You can also opt for a householders package policy, where not only is the structure of your house protected, the contents of your home are protected from burglary, damage and mechanical/electrical breakdown.

Yes…You definitely need home insurance to protect your most priceless asset…Your home. Now it’s time to discuss popular myths, which might come in the way of you, benefiting from home insurance.

We at IndianMoney.com help you pick the right home insurance plan. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

Myth 1

Home Insurance does not cover damage due to natural calamities

What use is home insurance, if it does not cover damages due to natural calamities? Storms, Cyclones, Floods are all considered natural calamities, popularly called Acts of God.

Your home insurance plan protects you against both…man-made calamities and natural calamities. Your home is protected from fire, floods, cyclones, storms, landslides and even an earthquake.

Myth 2

Tenants don’t need home insurance

You are a tenant staying on a property, paying rent to the landlord. You do not own the house. You cannot take home insurance for the protection of the structure of the house. But…you can avail home content insurance, to protect your belongings. You can avail home content insurance, to protect your costly belongings such as jewelry and electronic appliances. Home content insurance, compensates you for the theft of costly belongings.

Myth 3

If you have home insurance you don’t need life insurance

You have availed a home loan from a reputed bank, to buy your dream home. You have also availed home insurance, to protect it. Now, do you need life insurance? If your home is destroyed in a natural calamity, the insurer gives you money to rebuild the structure of your home. You have availed a home loan and the responsibility of repaying the loan is yours. If something were to happen to you, who would repay the loan? The bank could seize your property and your family would lose their home.

This is why you need life insurance, particularly a term life insurance plan. You pay a fixed sum of money called a premium, to a life insurer and avail a term life insurance plan. You pay this amount for a fixed time period called tenure or term of the policy. If you die before the tenure of the plan, the life insurer pays an amount called the sum assured (death benefit) to your spouse and children (nominees of the term life plan). If you survive the term of the life insurance plan, you get nothing. Read more on term insurance.

If something untoward happens to you, the life insurer pays money to your family. Your family can live on this money. They can use this money to repay the home loan and retain the house.

Why do you need to know the myths on home insurance? Simple…If you don’t separate the myths from facts, your house and its contents cannot be protected. Be Wise, Get Rich.

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Article Author

Mr. C.S. Sudheer

Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.

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