Some “facts” about homeowner’s insurance have been repeated so often that they’ve become part of a common body of knowledge, despite being completely untrue. Whether you’re a new homeowner or you’ve owned your home for decades, you’ve likely heard these myths. Misinformation could lead you to purchase insufficient coverage or the wrong type of coverage. This blog debunks several of these myths so you can finally learn the truth.
- All Policies Cover the Replacement Cost of an Item
In most home insurance policies, you do not receive the replacement cost of an item if it is destroyed during a home incident. You simply get the value of the item in the condition it was before the incident occurred, which is often not enough to actually replace the item. You generally have to add a separate replacement cost clause to your policy.
- All of Your Items Are Covered By Your Policy
It’s unlikely that everything in your home is covered by your home insurance. Carefully read your policy to see what your coverage limits are for different categories of items. Items like antiques, jewelry, furs, and family heirlooms often have low limits unless you specifically add more coverage.
- Your Policy Protects Your Home-Based Business
If you own a home-based business, you need additional coverage beyond what is included in your homeowner’s policy. If disaster strikes, your policy does not cover your business equipment. In many cases, you just need to add a business rider to your current policy.
- Home Insurance Covers Termite Damage
Termites can cause a massive amount of damage in a relatively short period of time, but most home insurance policies specifically exclude damage caused by termites and other pests. You may have to schedule regular inspections and pest control services to protect your home.
- An Inventory List is Useless
When you’ve moved into a new home, you may be tempted to skip the additional step of creating a home inventory. However, if you’re burglarized or there’s a natural disaster, it could be impossible for you to determine the full extent of damage without a home inventory. Your home inventory can help you seek full reimbursement for stolen or damaged items after a disaster.
- Flood Coverage is a Standard Part of an Insurance Policy
A standard homeowner’s insurance policy may not cover flood damage even if you live in a flood zone. It’s important to spend some extra time looking into companies that offer flood coverage, particularly if your home is in a susceptible area.
- Homeowner’s Insurance Covers Medical Bills Caused by an Injury
Some people believe that their homeowner’s insurance will cover their medical bills if they are injured in their own home. The liability coverage included in your policy only protects guests who are injured in your home. If you or anyone else who lives in your home is injured, those claims must go through your health insurance.
Clearly, these myths often work to the benefit of home insurance companies and make it easier for them to deny claims and coverage. It’s important to have a legal advocate on your side—call The Monfiston Firm, P.A. at 888-988-FIRM (3476) to schedule your free consultation.