7 Most Common Misconceptions About Home Insurance

BENGALURU: There are a number of home insurance misconceptions that can prove troubling and expensive for most homeowners. Before purchasing insurance for your home, it’s a good idea to talk to an insurance expert to make sure the policy covers all significant risks. Still, not many people in India buy home insurance due to a lack of awareness, according to yahoo.com.

Here are the most common misconceptions:

Buying Home Insurance without Owning a House:

If you have given your house on rent, you can take insurance for the structure as well as for its contents. Specific covers are also available in the market for home insurances. As a tenant too, you can insure the contents of your home and if you are planning to move to another place, you can get the policy endorsed for a change of address.

Home Insurance Is Going To Be A Costly One:

Many people think that buying a home insurance policy is going to be a costly one but it is not. For e.g. - A sum insured of Rs.10 lakh, assuming you have a house with a built-up area of 1,000 sq.ft and construction cost is Rs 1,000 per sq.ft and valuables worth Rs 5 lakh including jewellery. Then the premium comes to around Rs.2,500. This is just 0.25 percent of the sum insured but the truth is that home insurance generally pays you the cost of construction and not the cost of land.

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