Home insurance is valuable when it comes to protecting your property. However, it’s not easy to understand because there’s a lot you need to know to ensure you’re protected.
To know more about home insurance, we’ll walk you through common home insurance myths so that you can be aware of the coverage you need.
Myth #1: All natural disasters are covered.
Home insurance doesn’t automatically cover all-natural disasters. There are different home insurance policies, and each protects against different perils. For instance, most policies will cover windstorms, wildfires, hurricanes, tornadoes, and ice storms but exclude earthquakes. However, you can add earthquakes to your coverage. Depending on your insurers and where you live, there may be other omissions in your insurance policy, so make sure you carefully review your home insurance coverage to know what’s covered and what’s not.
Myth #2: Insurance will pay to rebuild my home if destroyed.
The threat of fire, hurricanes, tornadoes and other disasters are reasons why people get homeowners insurance. But simply having an insurance policy doesn’t mean that you will get compensation to rebuild your home. Every home insurance policy has limits. Before purchasing a home insurance policy, you need to know what your policy covers.
Myth #3: Homeowner’s insurance will cover my family’s injuries.
Bodily Injury Liability coverage is one of the best coverage’s on your home insurance policy. Bodily Injury Liability coverage is meant to pay for medical treatments for your guests or any lawsuits injured party might file against you but not your family. With bodily injury liability coverage, your family does get protection.
Myth #4: Premiums will go up if I file a case.
While it’s true that your claim history will determine the cost of your insurance premiums, one claim won’t make much difference when it comes to your monthly payments. However, multiple claims within a short period are likely to cause your insurance premiums to increase. So don’t start filing claims immediately something goes wrong in your home.
Myth #5: Having more home insurance coverage is a waste of money.
While we are all looking to save money in any way we can, no one can predict when the next disaster strike. Selecting a weak home insurance policy simply to save money every month will leave you in the lurch when you file a claim. If you’re looking to save some money on your home insurance premiums, ask your agent about how you can get the best home insurance policy without negatively affecting your level of protection.
Myth #6: Home insurance policy covers all your property.
Your standard home insurance policy will cover most of your belongings, but valuable items such as jewelry, sports memorabilia, collectible items, and more will require additional coverage.
Myth #7: Standard home insurance policies will cover water damage.
Most standard home insurance policies will cover water damage caused by anything inside your homes, such as a faulty water heater or a burst pipe, but water damage caused by water that enters your home through external sources such as floods or heavy rainfall is generally not covered. Fortunately, you purchase additional water damage coverage to protect your house in case of water damage caused by external sources.
Myth #8: Home insurance covers normal house wear and tear.
As a homeowner, you are responsible for the maintenance and up keeping of your home. However, home insurance does not cover normal wear and tear caused by poor home maintenance. Keeping your home up is the best way to prevent expensive home damage in the future.
Myth #9: Your home is covered while you’re away on vacation.
Most insurers need you to take the necessary precautions to maintain your home while you’re away. For instance, if you’re going on a vacation or holiday, you’re required to drain your pipes or ensure your home is heated to prevent the water running through the pipes from freezing. If you don’t follow these simple instructions in your insurance policy and open a claim, your insurer may not pay your claim.
Home insurance policies are not always easy to understand for people, and that’s why it’s important to stay informed about what your policy covers. Don’t allow any of these myths to convince you to settle for less home insurance coverage. If you have any questions about a home insurance policy, give your insurance broker a call to discuss your policy. Your insurance broker can help you get the best home insurance coverage that suit your needs, and they’ll be there to disclose any more insurance myths that may come your way.