The global home insurance market was valued at $225.42 billion in 2019 and is expected to reach $395.04 billion by 2027.

Home insurance protects you, your home, and your personal property from fire, theft, and other calamities. Unfortunately, there are a lot of myths surrounding home insurance out there.

So, how do you determine what’s true and what’s not? Below are the most common home insurance myths homeowners should dismiss.

Home Insurance Is a Waste of Money

The truth is homeowner insurance can save you thousands of dollars if a disaster strikes. For instance, if a storm knocks on a tree and demolishes your home, your homeowner’s insurance policy may rebuild your home.

Again, the policy can help replace your personal properties and pay for you to live in a rental unit while your home is being repaired.

In addition, home insurance also protects you and your family from liability. If a contractor gets hurt on your property and decides to sue you, homeowners insurance covers the legal costs.

One may argue that these scenarios are hypothetical, and some may never occur.

The truth is, owning a home comes with a lot of risks. Obtain home insurance today from to protect yourself from liabilities and expensive bills.

There Is No Need To Re Shop for Home Insurance

Many homeowners assume once you obtain a homeowners insurance policy, you should keep the policy indefinitely. This may work for a few, but a smart homeowner re-shops their home insurance every two to three years.

Shopping around can save you a few thousand dollars if you find the same policy at a reduced price. When shopping around, visiting several insurance companies will help you determine the best homeowner’s insurance coverage.

Homeowners Insurance Covers Any Type of Damage

This is not true. Standard homeowners insurance doesn’t cater to damages from floods and natural disasters like earthquakes.

To protect your home from flood damage, you require to purchase an impartial flood insurance policy. Similarly, to protect your home against earthquake damage, you must purchase earthquake insurance.

Again, home insurance does not cater to damages resulting from failure to maintain your home.

Homeowners Insurance Will Automatically Cover Stolen Items

The best homeowners insurance covers your personal belongings against theft, whether stolen on or off your property. For instance, if you lose your phone at the airport, your insurance will help replace it.

But, home insurance has sub-limits on how much they can pay for valuable items like jewelry and expensive technology. For instance, if your coverage limit for gadgets is $1500 and your stolen phone was worth $4000, your insurance will only reimburse you a maximum of $1500.

Avoid Losses by Ignoring Home Insurance Myths

Understanding these home insurance myths is essential to every homeowner. A simple misunderstanding of what your homeowner’s insurance policy covers might land you in a sticky situation later on.

Always take time to read through the fine print of insurance policies to understand what is covered and what’s not covered by your policy. Feel free to consult an insurance agent for more details about your coverage.

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