Home insurance can feel very complicated, and there are many home insurance myths you should be wary of. Many of the rumors that persist about home insurance can be harmful to you financially, and it’s important to have all the facts when you insure your home. We’re in the mood to bust a myth, so check out the following home insurance myths – and discover the truth.
Myth #1: Home insurance isn’t worth it – it’s a waste of money.
Home insurance is a financial safety net that will help you protect your investment in your house. Consider the whopping cost of rebuilding your home, or even repairing it after a tree crashes through the roof. It might seem like a lot of money for something that appears to be pretty invisible – you can’t eat, wear, or install home insurance, after all – but having the right home insurance can make a huge difference if you ever had a loss like a fire, burglary, or hailstorm.
If you’re worried about the cost, shop around and get multiple quotes. Compare coverages and pricing options to make sure that you’re getting a good deal for good insurance. Our team of home insurance agents can help you get multiple quotes and save money on your home insurance.
Myth #2. I should insure my home for its market value.
Rather than insuring your home for its market value, insure it for its replacement cost. That means you’re taking all of the expenses associated with rebuilding your home, such as construction costs and building materials, into account. Insuring your home for its market value may not give you the coverage you actually need to build your home from the ground up.
Myth #3. All my belongings are covered.
Yes, home insurance protects your personal belongings. But you really have to read your home insurance policy carefully to see what the limits are and what losses are covered. For example, jewelry and valuables may only have a small amount of insurance – an amount that won’t fully cover them. You might have to add coverage for jewelry, valuables, or collections.
Myth #4. Home insurance will replace my belongings like new.
Here’s the thing:
The reimbursement you’ll receive for personal belongings that are destroyed by a covered loss depends on how they’re insured.
If your belongings are insured for their Actual Cash Value, or ACV, your insurance company will reimburse you for the value of your belongings at the time of the loss. That means you’ll get the depreciated value of your belongings (which might not be enough to replace them at today’s prices.)
Protect your home from fires. Get a quick homeowners insurance quote today.
Replacement cost value coverage allows you to replace your belongings at today’s prices. You can replace your possessions, regardless of the depreciated value of the items when they were destroyed.
So, take care to check how your belongings are covered by home insurance – you don’t want to get any nasty surprises.
Myth #5. Flooding is covered.
Of the home insurance myths we’ll discuss, this one is very dangerous.
Unfortunately, many homeowners find out that this myth is just a fable. Flooding is not covered by home insurance. So, if it rains really hard or if a river bursts its banks, you would not be covered. In order for your home to be covered for flooding, you can go through an agent and get flood insurance from the National Flood Insurance Program.
Myth #6. Termites are covered.
Nope. Those many-legged demons are not covered by home insurance, so you’d be on your own to pay for extermination and the repairs of the damage. And termites can be very destructive. Who would have thought such tiny pests could cause so much harm?
Anyways, it’s important to have regular pest control services and termite inspections. Outsmart the little monsters before you have a full-blown infestation.
Myth #7. My home-based business is covered by home insurance.
It’s so important that you get the right home business insurance so that your equipment and your liability is covered. You may need to simply add an endorsement to your home insurance policy to cover your business equipment. Or you might need a more extensive home-based business insurance policy. Or, if you’ve got a fairly big home business, you might need a business owners’ policy.
Myth #8. Any injury that occurs in the house is covered.
Okay, here’s the truth about this one:
Your liability is covered, meaning your responsibility to others who get injured on your property (for example, if a guest trips on your front steps and breaks an ankle.) So, if a guest gets hurt, your responsibility to them is covered by home insurance. However, if you or a family member are injured, you would have to use your health insurance.
These are eight home insurance myths you should know about. We apologize if we burst your bubble with any of these debunkings. If you have any questions about these home insurance myths, we can help answer them. And if you want to get multiple home insurance quotes so you can compare coverages and pricing (and save money on home insurance) you can fill out our online quote form or give us a call today. Our team of insurance professionals is here to help.