Common House Insurance Myths Busted

It is vital you take all the precautions possible to secure your house and insure it to be able to brave rough weathers.


When you build a house for yourself and your loved ones, it is not just money that you are investing in it. You invest a part of yourself as you see your house turning into a home brick by brick. Your abode has got more to do with your emotions and feelings and less with money. Of course, you might have spent a huge amount on building your home. But the investment does not stop there, and this is the point we are trying to make here. Therefore, it is vital that you take all the precautions possible to secure your house and insure it to be able to brave the rough weathers.

One of the most important measures that you would be taking up to protect your house is purchasing the right house insurance. It would be utterly irresponsible on your part to think that you can do without one. However, as you put your mind to purchasing a house insurance policy, thousand rumours and myths shall make their way to you. Therefore, what you need is the right education to bust these myths and make an appropriate call regarding the house insurance policies.

Myth 1: The Coverage Limit and the House Value Should be Proportional-

We need to begin busting the myths with the most popular one. You’ll hear several rumours afloat that the coverage limit of the house insurance policy must be equivalent to your house’s value. But you should know better than this. There is no strict rule that demands you to follow the said statement. Your coverage could be more or less than the value of your house. All you ever need to know while calculating the appropriate cost of coverage is the minimum amount you would require to rebuild your house in case of an unfortunate event.

Myth 2: Home Insurance is an Utter Waste of Money-

You must not give in to the idea of doing away with home insurance policies. It might be quite tempting to save your money instead of spending it on insurance. But, if you do this, you would be making the greatest mistake of your life. As soon as you get your house all set to move in, you must research the best insurance policies in the market and select the one that suits your requirements the most. It might not occur to you today, but this insurance is going to be your knight in shining armour when it comes to rebuilding your house in times of adverse circumstances.

Myth 3: My Home Insurance Shall Cover All My Belongings-

Here we have another myth to debunk, which is that house insurance covers all the belongings of an individual. It is true that your house insurance shall cover most of your belongings, but you cannot pin all your hopes down to this one. Every insurance policy has certain limitations, and you must read through your policy to understand your insurance. Do not just blindly purchase any policy. Read in between the lines to understand what your policy provides and only then proceed with it.

Myth 4: My House Insurance Shall Cover My Business Too-

Not all house insurance policies cover your business liabilities even if you are the owner of a home-based business. You must read through the documents carefully before taking the next step. If you require coverage plans for your home-based business, you must try to get your hands on a more comprehensive business insurance coverage along with your house insurance. While you are checking for the best business insurance policies, check this site too to get some more insight into other insurance policies. Trying to get as much as possible only from your house insurance seems a bit unfair and unjust. There is only so much that insurance agencies can do. Therefore, you must be conscious of your moves.

Myth 5: My House Insurance Shall Cover Flood Damage-

You will require a separate flood insurance policy to cover for flood damages to your house. Your house insurance might cover some basic water damage to your house, but flood reparations do not fall within those brackets. Thus, do not fall for the myth that states that your house insurance, by default, shall cover for flood damages as well.


The moment you try to clear your head and make the decision of purchasing a house insurance policy, you shall find yourself surrounded by a sea of rumours. At times as such, you need to keep your calm and learn all that you can from credible resources. That is the only way to stay enlightened and informed and tread on the right path. Buying an insurance policy is a big investment. Therefore, you need to make sure that the plan you are investing in is worth your time and money.



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