If you want to protect your home from damage due to acts of nature and other outside factors, home insurance is a must. Depending on the type, your policy may protect your possessions, as well as the homes of others in the event that your party causes damage to someone’s else’s home. Home insurance, as with other types of insurance, often isn’t as clear-cut as homeowners would like.
There are plenty of myths out there when it comes to home insurance. In this blog post, we will dunk some of the more common ones.
- Standard home insurance covers flood damage – The truth is that standard homeowners insurance doesn’t cover flood damage. You must buy a separate flood insurance policy in order to be covered from a natural disaster.
- Medical expenses are covered in case of an injury – Keep in mind that the medical payment portion of your home insurance is designed to protect you if a guest gets hurt on your property. However, you and your family aren’t covered from injury on your own property.
- There’s no need to make a list of your possessions – When you file a claim, the insurance agent will ask you list all items that were lost. Therefore, an inventory list is essentially the proof of ownership. That’s why it’s important to prepare your list of possessions ahead of time.
- Your premium goes up every time a claim is filed – One claim shouldn’t necessarily result in a premium increase. Be sure to always estimate repair cost before filing a claim. If the cost isn’t much higher than your deductible, it’s probably best to pay it out-of-pocket rather than file a claim.
- Home insurance covers all valuables – It’s important to know that home insurance has a limit on coverage amount for valuables. For example, if you have an extensive collection of jewelry or sports memorabilia, you should purchase additional coverage for those items.
- Home insurance covers damage caused by lack of maintenance, including mold – It’s ultimately up to the homeowner as far as maintenance is concerned. Regular home maintenance can prevent major repairs and keep your home safe.
- Flood insurance is only for those who live in flood zones – Indiana may not be the first state that comes to mind when thinking about states in flood zones, but the reality is that floods can happen anywhere.
- You must lower coverage to lower your premium – If you’re looking for areas to save money, you probably want to turn to somewhere besides reducing your insurance coverage. You want to always keep your home and family protected, which is why you should be adequately insured. Contact your insurance broker to see what options you qualify for that might lower your premium.
- Your coverage amount is based on the home’s purchase price – Your coverage should be based on the replacement cost of your home. This is usually calculated by multiplying the home’s square footage by current local construction costs.
- You can’t buy a home without first buying home insurance – Most lenders may require you to purchase home insurance, but it’s basically up to the homeowner.
Benefits of Home Insurance
The goal of a home insurance policy is simple: to protect your home and personal belongings from damage or theft. Homeowners rarely think about getting home insurance until after something has happened. Don’t let your home or family be compromised as a result of not having quality home insurance.
At Gutierrez Family Agency, we can set you up with the below options:
- Standard homeowners insurance
- Commercial insurance
- Flood insurance
- Supplemental insurance
- Condo insurance
- Earthquake insurance
- Vacant property insurance
- Fair Plan home insurance
- And much more