Whether you are a homeowner or a tenant, protecting your home from unexpected situations is certainly a good idea. But finding the right home insurance policy to secure your house can be a difficult task. With many misconceptions and myths circulating around, residents could end up buying the wrong policy. It’s important to fact check these pre-conceived notions to be able to make the right choice.
Below are five most common myths about home insurance:
Myth: All my belongings are covered automatically…
False. It is wrong to assume that everything in your house is covered by default. In reality home insurance policies contain many exclusions and restrictions with respect to the coverage. Items such as jewelry, expensive pieces of art, portable equipment and other valuables are covered only if you have the personal belongings cover in your home insurance policy. Moreover these will be covered up to a certain limit which is the maximum amount that can be claimed.
[Related: Why tenants shouldn’t skip home insurance]
Myth: Injuries to self are covered…
False. Surprising as it may seem, your home insurance policy will only cover injuries to guests and third parties resulting from accidents on your premises. You or other permanent members of the household are not covered for injuries under home insurance and this will be covered under your health insurance.
Myth: Your home is protected even if you go on a long holiday…
False. Home insurance policies very clearly state the number of days you can leave your house unoccupied for. In most cases, this will be a maximum of 60 consecutive days but it’s wise to check the terms in your policy before you go on a long holiday.
Myth: Home insurance covers property maintenance…
False. Whether it’s the roof that’s getting old or the tiles that need fixing, your home insurance is not going to cover wear and tear. Maintenance of your property is not part of the insurance coverage. Home insurance restores your property to its previous condition in the event of an unexpected calamity such as fire, flood or theft.
[Related: Breaking down your home insurance policy]
Myth: You are covered if a pet damages your property…
False. If you’re an animal lover with pets at home, you might want to be careful with your expensive TV, glassware or furniture. Majority of insurers will specifically exclude any damage resulting from pets activities such as scratching, tearing or breaking household items. Even if you have the accidental damage cover in your policy, this will not extend to accidental damage by pets.
