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Home Insurance

8 Myths about Home Insurance Demystified

by Holistic 2 Comments | Filed Under: Insurance

Have You Ever Wondered Which is Worse?

A devastating earthquake or picking up the pieces of life after surviving such an earthquake?

Perhaps the second one requires more resilience and determination. It also requires the hand of providence and of-course good planning habits.

It would be a shattering to see one’s home crumbling in front of their eyes and would be all the more depressing if the house is not insured.

Table of Contents

  • What’s Home Insurance?
  • Myth # 1: Home Insurance does not cover hand-of-God incidents
  • Myth # 2: Settlement of claims is a cumbersome process
  • Myth # 3: Low Insurance Premium means Low Insurance Coverage
  • Myth # 4: It is necessary to own the home for having it insured
  • Myth # 5: Burglary is not covered
  • Myth # 6: Home insurance only covers the structure and contents
  • Myth # 7: Buy lower coverage to reduce the insurance premium
  • Myth # 8: It does not cover damages due to normal wear and tears like leakages
  • Conclusion

First, let’s see what is Home Insurance.

What’s Home Insurance?

This offers protection to the structure of the house in the event of any physical damage or destruction by any unavoidable perils. It covers loss or damage caused by man-made and natural calamities.

Now there are certain myths with regards to home insurance and through this article, we attempt to de-construct such myths:

Myth # 1: Home Insurance does not cover hand-of-God incidents

It is a general feeling that home insurance does not cover natural disasters. However, mishaps like fire, earthquake, flood and other perils are amply covered in the first section of most home insurance policies. In most of the plans, this is mandatory coverage.

In order to understand what is covered under the policy, it is important to read the policy documents carefully. Only after considering the terms of the policy in detail should one commit to purchase the policy.

It is a fact that some insurance companies may cover a particular form of a natural disaster while others might not do it. It is always a good practice to compare different policies before buying one.

Myth # 2: Settlement of claims is a cumbersome process

Many people shy away from buying a home policy simply because they feel that the claim lodging and settlement process is innately cumbersome. Actually, it is not that intimidating and just needs to follow a particular procedure.

When the property of the insured is damaged due to some calamity, intimation has to be given to the particular insuring company as early as possible, either to the local office or the main office as per the stipulations in the policy.

The insurer on its part will send an agent to survey the extent of damage to the policyholder’s property. Once the agent files the report, the decision is taken regarding the value of the claim that is permissible as per the policy.

The insurer might ask for certain documents from the insured before they finally go about the process of settling the claim.

With the gradual and progressive improvement in technology, a lot of ease has come about in the process of storage of policy documents. Now policy documents can be stored in Dematerialized or electronic format also. This helps in the case where the original policy has been misplaced or lost and in such situations, the only question that the insurer asks is the date when the policy was taken.

Myth # 3: Low Insurance Premium means Low Insurance Coverage

Home insurance

Insurance coverage for homes and the premium amount payable are not always directly proportional. If the home to be insured is already equipped with such safety devices as fire alarm, and burglar alarms, it is likely that the insurer will offer discounts on the premium.

Judicious decisions while buying a policy will help in keeping the premium cost low. For example in areas, which are calm and peaceful a cover for riot and terrorism might not be required at all.

As these natural calamities are not very frequent, the risk for the insurer is low. So the premium will be obviously low.

Myth # 4: It is necessary to own the home for having it insured

Often people are under the impression that in order to insure their place of residence, they need to own it. This is not true.

The house owner can insure the basic structure of the house that he is renting out.

A tenant can always insure the belongings in the house they are residing in. If they happen to change homes, the insurer can approve the change of address.

Myth # 5: Burglary is not covered

Home insurance policies cover not only damage caused by natural disasters but also damage or loss caused by robbers burgling the house or even attempting to burgle it.

Individual items of value like pieces of jewellery, documents, gadgets and fittings can all be insured. However, discretion may be used to insure only the valuables, else the premium will be substantially high.

Myth # 6: Home insurance only covers the structure and contents

Home insurance only covers the structure of a home. Insuring the structure of your home is more important. If you want to cover the contents of your house, your premium will increase accordingly and the insurance becomes costlier.

If you need you can also choose add-on covers. For eg: You can choose the loss of rent add-on cover and you would be indemnified in case your tenants vacate due to any damage caused to your house.
Some of the other add-on covers are:

  • Loss of rent,
  • Temporary resettlement cover,
  • Public liability,
  • Pet dog insurance cover,
  • ATM withdrawal cover,
  • Lost wallet cover,
  • Key and lock replacement cover

These covers provide wider protection to your home.

Myth # 7: Buy lower coverage to reduce the insurance premium

Don’t do this as it breaks the very purpose of buying insurance. A low coverage may not cover your entire risks hence buy sufficient insurance to cover all your risks.

Myth # 8: It does not cover damages due to normal wear and tears like leakages

If your home is damaged due to leakage from overflowing water tanks, pipes or automatic sprinkler, it is covered by home insurance. The list includes:

  • Water leaks causing damage to the property
  • A water leak in the roof
  • Bursting of pipes
  • Bursting of water tanks
  • Accidental leakage from automatic sprinkler installations

Conclusion

While buying an insurance policy it is imperative that the policy document is studied thoroughly. Clarifications may be sought in case it is felt that there is any ambiguity in the policy clause. With online policy buying becoming simple, it is an easy to compare the various policies online before taking a final call.

Does your myth about home insurance clarify? If you have any queries you can let us know through the comment box

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Comments

  1. Tim says

    August 18, 2020 at 4:12 pm

    Thank you for the article. Very informative.

    Reply
    • Holistic says

      July 14, 2021 at 1:52 pm

      Thank you

      Reply

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Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
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I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
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I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
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I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Google Reviews

Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

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