Megasports4u.com – Housing insurance is one of the important insurance products to be owned by every homeowner.

Housing insurance can provide financial protection in the event of damage or loss due to natural disasters, fire, theft, or other risks.

However, there are still many people who do not understand the benefits and how housing insurance works well. As a result, various myths arise that are misleading and make people hesitate to take out housing insurance.

5 Myths About Home Insurance You Should Know

Here are five myths about housing insurance that you should know and the reality.

Myth 1: housing insurance only protects home buildings

Many people think that housing insurance only protects the building of the house only, not including the contents of the house such as furniture, electronics, clothing, or other valuables. In fact, housing insurance can also protect your possessions in the house from the risk of damage or loss.

Of course, you should choose the type of policy that suits your needs and inform the insurer of the value of the items you want to insure.

In addition, you must also keep proof of ownership of these items, such as notes of purchase, photos, or certificates, so that it is easy to process claims.

Myth 2: housing insurance is very expensive and unaffordable

Another myth that often arises is that housing insurance is very expensive and not affordable for the general public. In fact, housing insurance premiums vary greatly depending on factors such as location, area, age, condition, and building value of the house, as well as the type and amount of protection desired. You can compare different quotes from different insurance companies to get a price that fits your budget.

In addition, you can also save on premium costs by improving the security of your home, for example by installing fire alarms, strong door locks, or surveillance systems. This can reduce the risk of losses that may occur and make the insurer provide premium discounts.

Myth 3: housing insurance covers all types of damage or loss

The next myth is that housing insurance covers all types of damage or loss that occurs to your home without exception. In fact, every housing insurance policy has certain provisions that govern what is included and not included in the coverage of protection.

Typically, standard housing insurance only covers damage or loss from natural disasters such as earthquakes, floods, landslides, hurricanes, lightning, or fires. As for other risks such as damage due to negligence of homeowners, acts of terrorism, sabotage, war, or nuclear disaster are not included in the coverage.

If you want to get wider coverage, you will have to pay additional premiums or purchase additional policies.

Myth 4: housing insurance can compensate for losses in full according to market value

The next myth is that housing insurance can compensate for losses in full according to the current market value of your home. In fact, there are two ways used by insurers to calculate the value of compensation, namely based on the replacement value (replacement value) or actual value (actual cash value).

Replacement value is the cost required to rebuild or repair your home to the same standard and quality as before the damage occurred.

While the actual value is the market value of your home after deducting depreciation or impairment due to age or condition. Usually, the insurer will provide an indemnity value based on the actual value, unless you have a special policy that guarantees the replacement value.

Myth 5: housing insurance does not need to be renewed regularly

The last myth is that housing insurance does not need to be renewed regularly because it has been established from the beginning. In fact, housing insurance must be updated regularly to adjust to changes that occur in your home or neighborhood.

For example, if you are renovating, adding amenities, or buying valuable new items, you should inform the insurer about this in order to get the appropriate protection.

Otherwise, you may end up with an indemnity value that does not reflect the current value of your home. In addition, you should also pay attention to the validity period of your housing insurance policy and extend it before maturity so as not to lose protection.

Here are five myths about home insurance that you need to know. Hopefully this article can help you to better understand the benefits and how housing insurance works well.

If you are interested in taking out housing insurance, do not forget to choose a trusted and reputable insurance company.

Good luck!