When it comes to home insurance, misinformation is more common than you’d think. From assumptions about what’s covered to confusion about policy value, these Home Insurance Myths can lead to poor decisions and costly mistakes. Understanding the truth behind these myths is crucial for making informed choices and ensuring your property is properly protected.
Whether you’re a homeowner, a tenant, or simply exploring your options, debunking these myths can help you secure the right protection for your home and everything in it.
Several misconceptions still shape how people view home insurance—what it covers, who needs it, and how much is enough. Let’s clear the air by tackling the most common home insurance myths one by one.
This is one of the most common misunderstandings. Most policies cover a wide range of risks, but not everything is included by default.
Tip: Always read the list of exclusions. Consider optional add-ons to fill in the gaps.
Many assume that home insurance should match their property’s market value. However, the correct approach is to insure based on the rebuild cost—the amount needed to rebuild the home from scratch.
| Factor | Market Value | Rebuild Cost |
| Includes land | Yes | No |
| Affected by market trends | Yes | No |
| Needed for Insurance | No | Yes |
Tip: Use a rebuild calculator or get a professional surveyor’s advice to estimate rebuild value correctly.
Even if you don’t own the property, you’re still responsible for your personal belongings and liability. One of the common home insurance myths is that renters don’t need coverage—but a policy tailored for renters, known as tenant insurance, is essential.
Tip: Don’t assume your landlord’s policy covers your belongings—get tenant insurance to protect your valuables and liability.
Each policy is different—coverage limits, exclusions, deductibles, and customer service levels vary between insurers. Comparing only premiums can leave you underinsured.
Tip: Ask for a sample policy document and compare features, not just prices.
It’s tempting to claim for every little issue, but doing so might impact your premium over time. Most policies come with a deductible—a set amount you pay before insurance covers the rest.
Tip: Reserve claims for significant losses or when self-funding isn’t practical.
Just because nothing’s happened yet doesn’t mean it won’t. Home insurance is about preparation, not prediction.
Tip: Think of home insurance as a safety net that protects your peace of mind.
Standard policies have a cap on how much they’ll pay for high-value items like jewellery, art, or tech gadgets.
| Item | Standard Cover Limit | What You Should Do |
| Jewellery | Often up to ₹1,00,000 or 20% of total content cover | Declare separately with valuation certificates |
| Artwork | Often not included in the standard cover | Get a professional appraisal and add as a rider |
| Laptops | Covered under electronics with conditions | Check usage terms and consider add-on coverage |
Tip: Declare high-value items explicitly. You may need to list them with appraisals for full coverage.
Most property insurance policies don’t cover natural disasters unless you specifically add that protection.
Tip: Know your local risks and add relevant riders to your policy.
One of the common home insurance myths is that older homes can’t be insured. In reality, older homes can absolutely be insured—though you might pay more due to increased risks such as outdated wiring or plumbing.
Tip: Upgrading key systems can improve eligibility and lower your premium.
One of the persistent home insurance myths is that a cheaper premium equals a better deal. But cheap doesn’t always mean smart. A lower premium might come with a higher excess, limited coverage, or slower claims service.
Tip: Strike a balance between price and protection. Value comes from how well the policy fits your needs—not just its cost.
Understanding the truth behind common myths can save you from expensive surprises later. Read the fine print, ask questions, and choose a cover that matches your real needs—not just assumptions.
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