Top 5 common myths about homeowner's insurance11/27/2015
Many people believe that homeowners insurance offers coverage to any damages experienced at home, but that’s not the case. The reality is that the policy contains quite a number of exclusions that may leave you with a coverage gap. The following are top 5 myths about this insurance policy that you should know of.
#1: During heavy rains my house got flooded so my insurance will reimburse me for the damages. Unfortunately, many standard policies don’t offer coverage to water damage that comes as a result of floods. If you are in a flood prone area, you are required to purchase a separate insurance in addition to your standard policy. #2: I have expensive silverware and gold jewelry that were stolen so i don't need an extra coverage for all my valuables. Fine, your policy may cover your appliances, clothing, furniture and other stuff that you have proven ownership. But the protection of your personal belongings is limited. Most standard policies don’t offer coverage to expensive jewelry, silverware and furs in an event of burglary. Sometimes you may be expected to put a cap of $1500 on all your valuables. #3: My youngest son has slipped on the stairs and got injured, therefore my medical payment part will cover for his injuries. This insurance covers ONLY other people who may get injured when on your property, and not you or any member of your family. For instance, if you fail to shovel the walkway on your property and someone slips and falls, then they will be covered from the injuries they sustain in case they decide to sue you. #4: I have made two claims for vandalism in my home this month so my premiums will be raised. This is perhaps one of the biggest misconceptions among home owners who have purchased this policy. Well, it’s a tricky one. There are lots of factors that are considered when determining your premiums, meaning that they will not necessarily go up when you file a claim. A single claim may not make any impact. However, multiple claims may make a big difference when it comes to your premiums. #5: My house is infested with molds and my walls are getting damaged. My homeowner's insurance will reimburse that too. Molds are typically not covered in homeowner’s insurance policy. This is because it’s assumed that they come as a result of general neglect such as improperly dried water. This policy only offers coverage in events like fire, lightening, theft, hail and wind. All these are some of the biggest misconceptions that people who have purchased homeowner’s insurance have. It’s recommended that you read through the print carefully and ask questions before you proceed to sing on the dotted lines. |
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