Common Homeowner Insurance Myths
These days certain types of insurance like health and auto are essential by the law. Having homeowners insurance is left completely up to your discretion, which is why so many homeowners choose to skip this kind of coverage. However, for an unfortunate subset of this group who don’t invest in a solid insurance policy, they live to regret the decision when an unforeseeable disaster strikes and their home and belongings are not protected.
The fact is that even if you do have an insurance policy in place for your home and possessions, you may not be as protected from loss as you think you are. What follows are common homeowner myths that can leave you under-protected or without any protection at all if you aren’t aware of the truth.
- Myth: My homeowner policy offers flood coverage
Even though flooding is a common disaster event and a flood can happen at any moment, flood coverage is surprisingly not included in the average home insurance policy. This means that in most cases, flood insurance must be added to a base policy to provide protection from this specific peril.
If you live in an area that is prone to heavy rain or unexpected flash flooding, it is important that you work with an insurance provider who specializes in writing supplemental flood insurance policies to protect your home and its contents.
Even if you don’t live in a flood prone area, having flood insurance coverage protects you in the event that a flood originates from inside your home such as when pipes burst or if your sewage system backs up.
- Myth: My Insurance policy pays for the total cost of my lost belongings
Many homeowner insurance policy holders believe that their coverage will pay for the entire cost to replace lost or irreparably damaged valuables. However, the truth is that the amount paid by insurance is usually only equal to the value of the item at the time that it was lost.
So for example, a five year old television that costed the owner $1000 brand new may only be valued at $150 at the time of the loss. That amount would more than likely not be enough to cover the cost of buying a new television with similar features and style.
To ensure that you can replace items lost with those that provide an equal level of utility, it is important to get a policy that includes a replacement cost clause. This clause specifically outlines the replacement value amount that will be paid for each covered item in the event of a complete loss due to a fire, theft or some other named catastrophe.
If you want to ensure that your new or existing homeowner insurance policy offers you all of the coverage and protection you need to safeguard your home and valuables, it is important to consult with an agent who has the right knowledge and experience.
Call Ihry Insurance today to speak with one of our home insurance agents to find out your options, verify your level of protection and get a free quote.