10 Homeowners Insurance Myths
If you have a home, you are going to need home insurance. But there are a lot of myths that you may believe about homeowners insurance. Below are 10 myths about home insurance and the truth behind them.
1. It Covers Flood Damage
Home insurance won’t cover damage from flood. You have to buy an insurance policy that is specifically for flood so that you are covered.
2. If I’m Injured Medical Expenses Will be Covered
That medical part of the home insurance policy is designed for your protection if there is a guest on your property and they get injured. Your family and you aren’t covered if you or they are injured.
3. It’s Dumb to Inventory Your Possessions
Having a list of the things in your home is the proof that you own them. When you have to make a claim, you have to list the items that had been listed to insure that nothing was forgotten. Which will maximize your reimbursement.
4. My Premium Increases Whenever I File a Claim
One claim might not mean that your premium is going up; but when you have more than one claim it might mean that the premium has gone up. Always estimate the cost of repairs before you file your claim. If the cost is not going to be a lot higher than the insurance deductible, it’s a better idea to fix it on your own dime instead of filing your claim.
5. It Covers Everything Valuable, Including Furs and Jewelry
Your policy will only cover so much regarding valuable coverage. If you have something that is over that amount, it’s better to buy more coverage for the items.
6. Poor Maintenance Damage is Covered
If you have damage due to something like mold, which is usually because of poor maintenance, you are not going to be covered. You are the one who is responsible for your home’s maintenance. This way major repairs are going to be prevented and your home is going to be safer.
7. You Only Need Flood Insurance if You’re in a Flood Zone
Floods happen everywhere. The regular insurance policy isn’t going to cover the damage that flooding causes, so you want to have some flood insurance.
8. You Must Lower Coverage to Lower the Premium
Reducing the coverage so you can save on the premium isn’t smart. You need to have adequate insurance. In order to keep the premium low, look at the options that you might be able to get which could lower the premium. One thing that might help is buying a burglar system.
9. The Dwelling Coverage Amount is Based on the Home’s Purchase Price
You should base this upon what your home will cost to replace. It doesn’t have to include your property’s land. Replacement cost usually is calculated when you multiply the up to date construction costs and your home’s square footage.
10. It’s not Possible to Buy a House and Not Buy Home Insurance
If your home is mortgaged, most of the lenders might require that you buy home insurance. However, it’s usually up to you to buy your insurance.
These are the myths that you may have heard about homeowners insurance. Know the truth and you’re going to save money, time, and heartbreak.
FREE INSURANCE REVIEW
WhitCo Insurance agents provide this free service just for you. Meet with our agents in person or connect online to review your coverage to keep up with your changing insurance needs. If you would like us to explain your insurance policies in plain English, you can contact us a call at 866-298-7608.
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