If you think that having adequate homeowners insurance is not important, consider this: the average loss is approximately $12,500 – and over $68,000 if fire or lightning is the culprit. A gap in coverage can pose a serious hazard to your financial future.
Disaster can strike at any time, so it is critical to be prepared. Here, we bust the most costly homeowners insurance myths so you are not surprised and better prepared when choosing the right coverage to protect your home and your family.
All Of Your Belongings Are Covered By Your Policy
This assumption is actually correct – to a point. Moderately priced personal items like furniture, clothing and sports equipment are covered by a standard insurance policy. High ticket items, on the other hand, are not. A standard policy imposes limits on these items. As a result, you could end up getting reimbursed a shockingly small amount for belongings that cost a fortune.
Fortunately, there is a way you can ensure that you are reimbursed for the full value of your expensive possessions. Get them appraised assigned to a policy of their own, known as a floater or personal property endorsement.
A Standard Insurance Policy Covers Flooding
One of the most widespread homeowners insurance myths is that you are covered for flooding if you have a standard policy. This is one of the most misunderstood conditions when it comes to homeowners insurance. Flooding is in fact not covered by your homeowners policy. Considering that flooding is rapidly becoming a common natural disaster, this poses a serious problem.
Supplement flood insurance solves this problem. These policies run about $700 on average, but your peace of mind and the reimbursement you will receive if flooding does cause damage is worth it.
Insurance Will Reimburse The Full Current Market Value Of Your Home If It Is Destroyed
Homeowners insurance covers the cost of rebuilding your home, not its current market value. This is a critical distinction because rebuilding costs are constantly increasing.
Check on your policy annually to make sure it is sufficient to cover the full cost of rebuilding in the event your home was destroyed. If your agent suggests increasing your premium a bit to protect you, follow their advice. The increase will likely be minor and will save the day if a disaster occurs.
A Standard Policy Covers Damage From Pest Infestations
When pests cause significant damage to your home, it can become uninhabitable. If this happens, you will not receive financial assistance from your homeowners insurance company. Why? Insurers define infestations as maintenance issues, rendering them inapplicable for claim submission and approval.
Your best bet for guarding against the havoc pest infestations can wreak is remaining vigilant about outbreaks. Guard against the growth of mold by using a dehumidifier and get your home treated promptly if an outbreak does occur. The cost of treatments is a small fraction of the money you will pay if you need to repair structural damage caused by pests.
Your Landlord’s Policy Covers Your Possessions
This is one of the homeowners insurance myths that causes the most confusion. There are certain advantages to renting versus owning a home. However, coverage of your belongings by your landlord’s insurance policy is not one of them. If something were to happen to the buildings and you lost your belongings, you would be out of luck if you did not have your own policy.
This issue is inexpensive and easy to solve. Renters insurance is among the least expensive policies. In fact, the average premium is just $187 per year – which breaks down to $16 per month.
An Agency That Will Protect Your Home And Family
Compass Insurance Agency gives you a choice between a large variety of homeowners insurance, flood insurance, renters insurance and floaters to ensure all of your possessions are covered and you can afford to rebuild if necessary. We offer coverage nationwide including Arizona, Indiana, Illinois, Wisconsin, Ohio, Georgia and others.
We are under no pressure or obligation to recommend one carrier over another due to our status as an independent agency. As a result, we are able to make recommendations based on what type and level of coverage is most beneficial to you.
The top insurance providers we partner with include:
- Progressive Insurance
- Liberty Mutual Insurance
- AAA Insurance
- Nationwide Insurance
- Citizens Insurance
- Grange Insurance
- Safeco Insurance
- And More
Do not take any chances with your homeowners insurance. Make sure you have all of the coverage you need for your peace of mind and wallet. Get a quote from Compass Insurance Agency.