Ten Home Insurance Myths

There are many myths about home insurance to be aware of.

Myth 1: Flood insurance-Floods are not covered by your standard home insurance, and you must purchase this separately if you have the need for this type of insurance. You do not want to learn this the hard way.

Myth 2: What makes your premiums rise-Some people think that filing a claim at any time will make their premiums rise, however, that may not be the case. There are many factors that will make it rise, but filing one claim should not raise your premiums.

Myth 3: Covers Injury- If you or someone living in your house gets hurt on your property, you are not covered. This type of insurance covers others such as neighbors and guests, if they get injured in your home or on your property.

Myth 4: Everything I own is covered- Things like jewelry or anything you consider to be a priceless heirloom is only covered for up to a certain price. Most insurance companies have a cap of a certain amount, and you can only claim that amount.

Myth 5: Mold Coverage- If you find that your home has a mold problem, you may not be reimbursed for the fixing of this problem, as it is sometimes considered as lack of maintenance, for example, if you have a leak in your roof, and it goes unfixed for a year, and you then have to replace your roof due to mold, that is considered lack of maintenance, and its your responsibility.

Myth 6: You should use the purchase price of your house to determine amount of coverage- The most common myth, as most people include the price of the land with the price of the home to determine how much the home is worth, however, if you have a fire, you don’t replace your land, so in turn, you only need to determine the price of your home.

Myth 7: I can’t get full coverage because I don’t have the money- You should not have to go without coverage due to your financial situation. Home owners can get discounts if they have things like alarms or security systems.

Myth 8: You must have insurance in order to buy a home- Although many lenders do require that you purchase home insurance, there are lenders that do not. It is not recommended that you not buy home insurance, as you should protect your investments.

Myth 9: Whatever I say my home is worth is what I will get back if all is lost- This is not the case. You will be required to make an inventory of the things in your home, and any new purchases will be required to be put in the inventory once purchased. The price of each item must also be included as well as serial numbers if any. Pictures are also a good idea, and this inventory should be kept safe, either in a fire proof safe or a safety deposit box.

Myth 10: Help will always be there when you need it- Some people think that in the case of a natural disaster, such as a flood or earthquake, that their governments will be there to help. This is not always the case, as there is insurance for this reason.