There are numerous myths floating around. Is Bigfoot real? Does the Loch Ness Monster really exist? Unfortunately, we don’t have those answers today, but we can confirm that these homeowners insurance misconceptions are MYTHS!

Myth #1: Your family’s medical expenses are covered by your homeowners insurance.

Fact: Your policy may have medical payments coverage that could help cover expenses if a guest is injured while at your home or on your property. However, guest medical coverage does not apply to anyone living in the home or listed on the policy.

Myth #2: Flooding is included in your policy.

Fact: Most homeowners policies do not include flood insurance. You must purchase a separate flood policy to protect against rising water or weather-related flooding (storm surge).

Myth #3: A home inventory list won’t help reimburse you for a claim.

Fact: To receive enough reimbursement to replace your lost or damaged items, you should have an up-to-date inventory list. Save receipts for big-ticket items, take photos and videos, and keep a list of the quantity and quality of each belonging.

Myth #4: All of your valuables are adequately covered under your basic policy.

Fact: Your policy will typically have limits on the amount of coverage for certain valuables, like jewelry and electronics. To ensure your valuables are covered, speak with your agent about additional coverage. Check out other gaps in your insurance!

Myth #5: Lowering your coverage is the best way to lower your premium.

Fact: Absolutely not! Most carriers offer a wide variety of discounts. Having a home security system or buying a newer home can make you eligible. Your local agent will help determine which discounts are right for you.

Myth #6: To purchase a home, you need home insurance.

Fact: If the home purchase is without a mortgage, then it’s typically up to the homeowner to decide whether to obtain insurance. Otherwise, it will depend on the requirements of your lender.

Myth #7: You need enough coverage for the market value of your home.

Fact: Have your agent or an appraiser determine the replacement cost of your entire home, meaning how much it would cost to fully rebuild or repair your home if it were destroyed in a disaster. This does not include the land you live on! These are a few areas to keep in mind when determining how much coverage you need.

Myth #8: A home-based business is covered by your homeowners insurance.

Fact: Your business equipment and liability are not covered by homeowners insurance. You’ll want to purchase a separate policy to protect your home business. This additional policy will help protect your business from scenarios like liability claims, employee injuries, fraud, theft, or vandalism.

Myth #9: Personal Property Replacement Cost means your policy will cover a new version of your stolen or damaged item.

Fact: Personal Property Replacement Cost covers the cost of replacing or repairing stolen or damaged property with new property of like kind and quality, at current market price. If your old sofa is destroyed by a covered peril, like a home fire, replacement cost will pay the full cost for a sofa similar to yours. It will not necessarily buy you that brand new leather sectional you’ve had your eyes on.  Coverage is also subject to policy limit and deductible.

Surprised by these homeowners insurance myths and have more questions? Check out these helpful blogs!

{{cta(‘4bd95106-7025-4e75-8744-5ce9ca03a24e’)}}