It is very sad and unfortunate to hear that thousands of people lose their homes due to hurricanes. It becomes terrible if the people did not have a home insurance or did not check the clauses properly in their insurance policy.
It is important to not only have a home insurance but also read and understand your home insurance policy so that you do not have to worry about it in the future. Below are some of the misconceptions people have about the home insurance.
Misconceptions About Home Insurance
Home Insurance Is Expensive
One of the biggest misconceptions that people have about home insurance which discourages them from buying one is that the home insurance is an expensive affair. On the contrary, home insurance is pretty cheap and is affordable by anyone and everyone who owns a home. One should choose an insurance policy which covers both the structure and the contents in the home.
It is often thought by homeowners that the insurance company would pay them on the basis of the market value of the home This is not true. It is one of the other misconceptions people have about home insurance. The cost of reconstruction and not the market value is taken into consideration. Add to this, the insurance policy does not cover the value of the land on which your home is built.
Personal Property Will Be Fully Covered
Many people think that the expenditure to replace or renovate your home items will be borne by the insurance company. While this may be partially true, this isn’t entirely the case. The insurance company does pay you the expenditure, but it accounts for the depreciation too. While your 4 year old LED may have cost you a fortune, it may be only worth a penny now due to depreciation. Even though the insurance company does pay the amount, it does so only after checking your receipts that you did have the material in your home at the time of the accident.
Burglary Is Not Included
Most people tend to think that the insurance companies do not insure against burglary, but this isn’t true. Nearly all of the insurance companies provide a cover against loss due to burglary. The insurance company pays for the expenses which would help to prevent future losses due to burglary. The expenses include safety door installations, CCTV cameras, repairs to doors and windows.
People think that their houses are covered against flood coverage also. But they are wrong. Floods are one of the common causes of destruction; this is the reason why insurance companies prefer to not insure homes against floods. Flood can occur due to various reasons, such as storm or ruptured pipe or even a drainage stoppage. Very few companies include flood cover in the insurance policies. It is advisable that people have the flood cover in their insurance policy, especially if they live in a flood prone area.
Termites are caustic and are more active in cold weather. They feed on wood. Buildings which are made with wood are more susceptible to termite attacks. Termites attack in large numbers, known as colonies. The destruction caused by termites can run into thousands of dollars. Therefore, it is wise to have your house inspected and treated instead of relying on home insurance solely.
Why Should You Buy Home Insurance?
Insurance helps you to save money in the form of cheap annual premiums which would safeguard you or your belongings in the future against damage. Nowadays, people insure everything from bikes and cars, to their health and life. Not only this, people insure their home too.
Home insurance is not only marketed by companies for their benefit, but it is a need of the hour too. Home is a place of warmth and affection and ensures your security. Protecting and insuring it should be one of the prime concerns when constructing a house.
The Bottom Line
You should not give any room to misconceptions and myths when it comes to getting your home insured. You should read your home insurance policy properly, specially the fine print. Some insurance companies may be willing to offer specialized insurance to you, but only if you would ask them.
It is advised to not be at the mercy of the home insurance only. You should take proper care of your home and regularly maintain it. This should be done in all seriousness to avoid misfortune in the future.