6 common Homeowner Insurance Myths Busted

Often homeowners insurance myths prevent people from acquiring the proper coverage they need. The industry has numerous misconceptions that can lead to coverage gaps and mistakes. Hence, having the appropriate knowledge can help you avoid potential issues.

Here are a few common myths debunked:

Myth 1: The homeowner insurance policy will cover all my belongings

You may have thought that your home insurance would cover everything, but it may not be able to do so for the cost of a valuable item lost. Similar to how floods or earthquakes affect your policy, it will only pay the cost of particular possessions. Most policies have limits on the value of certain items. For instance, your insurance company might have a limit on the amount of jewelry that it will reimburse. Before you take any action, make sure that you have an inventory of all of your belongings. Ask your agent about policy endorsements or supplemental coverage.

Myth 2: home insurance policy will cover all natural disaster damages

Although standard home insurance covers certain types of disasters, such as fire, theft, vandalism, and wind damage, it won’t cover earthquake or flood damage. Consider adding additional coverage if you’re worried about future disasters like floods or earthquakes.

Myth 3: I will not be liable for the trespasser’s injury on my property

You might have to take precautions against injuries caused by “attractive nuisances.” These include swimming pools and trampolines, which can tempt people into your home. If you need to take adequate measures to prevent guests from getting injured, you might find yourself in danger. While trespassing is sometimes wrong, it could still be a liability if you don’t secure your property. You might be liable if children get hurt in the pool or trampoline.

Myth 4: The insurance will pay for rebuilding my house destroyed in a fire

Getting insurance is the first step in protecting your home from various disasters, such as fires, tornadoes, and hurricanes. However, it’s not always enough to provide you with the financial compensation needed to rebuild your home. For instance, if a fire damaged your home, your insurance policy might only provide you with limited compensation.

If you’re planning on purchasing a home insurance policy based on how much it was worth on the market, it might be a mistake to set a high amount. In the insurance industry, replacement cost is the difference between the actual cash value and the replacement cost. It is the amount you’ll pay to replace your home after it has been damaged or destroyed.

Building a new home can be more expensive due to the changes in building codes, raw materials, and labor costs every year. If you last updated your insurance contract a while ago, you must speak with an independent agent to ensure that you have the proper coverage.

Myth 5: Insurance covers Termites

No, homeowners insurance doesn’t cover damage caused by pests such as termites, rats, and mice. Since most infestations happen over time and are usually preventable, insurance companies won’t pay for them. Also, homeowners insurance doesn’t cover regular wear and tear on the home due to the company’s expectations that the owners are responsible for the upkeep of the property.

Myth 6: If my neighbor’s tree falls on my roof, either mine or their insurance will cover it

His insurance might pay if your neighbor knew that the tree was dying or there was a reasonable chance it would fall. However, if the tree is healthy and a windstorm strikes it, your neighbor might not be able to provide coverage for your loss if you have a policy covering damage caused by a tree.

Know the Myths for Better Protection of Your Home

Since your home is probably the most expensive asset you’ll ever own, it’s essential to protect it adequately. Refrain from letting any of the myths surrounding home insurance convince you to settle for low-cost coverage. When disaster strikes, you’ll be glad to have peace of mind knowing that you didn’t sacrifice security for money.

Get Personalized Home Insurance with Family Financial Insurance

Family Financial Insurance Group can help you get the right coverage for your specific needs. Contact us for help with any questions about your current insurance policy or if you would like to receive a free quote. As an independent insurance agency, we can help you find the best policy at affordable pricing.

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