Buying a house is an exciting nerve-wracking, and momentous time in many people’s lives. While you are about to move into your new home, one of the most important things you can do is to secure a home insurance policy to ensure you’re protected in the event of a fire, theft, or some other disaster. Unfortunately, there’s a lot of ‘fake news’ about home insurance out there, and it can be easy to believe rumors about its coverage. That’s why we’re going to bust the top home insurance myths that could end up costing you.
I should insure my home for its market value.
This is one of the most common home insurance myths. It’s important that you insure your home for its replacement cost rather than its market value. The price you paid for it will not be the cost of rebuilding it again. The cost of rebuilding your home will depend on building materials and construction costs. If you only insure your home based on its market value, you may end up coming up short in event that you have to rebuild your entire house.
All in-home injuries are covered.
If your friend slips and falls on ice on your property, your home insurance policy’s medical payments typically help to cover medical claims that are filed. However, if you or a family member were to fall on the same patch of ice, your health insurance would kick in to cover those claims – not your home insurance. Your home insurance’s liability coverage covers your liability relating to third-party injury and damage, rather than your own.
Home insurance covers damage caused by a lack of maintenance, including mold.
Poor maintenance is not something that home insurance policies cover. It is the homeowner’s responsibility to reasonably maintain their homes, including doing regular maintenance. Preventative measures are also highly advised in order to protect property. Keeping your home in tip-top shape helps it to stay in good condition and prevents you from having to file a claim.
The premium goes up every time a claim is filed.
It’s true that a premium can go up if you file multiple claims. However, that is not normally the case when you file a single claim. Before calling your insurer to file a claim, it is important that you estimate the costs of repairs. If repairs cost less than your deductible or only slightly more, you will probably want to pay for it yourself instead of filing a claim.
Home insurance covers all valuable.
Your home policy has a coverage limit for valuables. High-value items such as jewelry, antiques, and musical instruments should have additional coverage purchased for them so you can be sure they are fully covered.
Now is the time to protect your property from damage and review your home insurance so that you know what is and is not covered. Do you have questions regarding your homeowners insurance? Talk to the professionals at Gee-Schussler Insurance Agency to get started on your tailored policy today!
