It would be ridiculous to expect anyone to know all that there is to know about home insurance. But unfortunately what can happen is people making assumptions that can become well known as facts when they are really fiction. To help with that, the following are 10 common myths people believe about home insurance.
Myth #1: Flood damage is covered under a home insurance policy. It would be nice if this were true but in order to have coverage against a flood and the damage it can cause, a separate flood insurance policy needs to be purchased.
Myth #2: You and your family are covered by the Medical Payments section. This is not true. If a non-family member should become injured while on your property and they are kind enough not to sue you, this is when Medical Payments come into play.
Myth #3: In the event that you lose your home, the insurance company will take your word concerning what you owned. If this were to happen your insurance company will want a list of your possessions that includes information such as cost, purchase date and serial numbers. Such a list would be difficult to compile from memory. It is recommended to already have that information put together and it would not hurt to have further proof of ownership with items like photos and receipts. You could keep an electronic version of what you have in your e-mail account as well as a printed version in a fire proof safe.
Myth #4: Your premium will increase just for filing a claim. Your claims history can be taken into account but one claim over the time of a few years, as opposed to multiple claims, might not affect anything. Even so, if the claim is for something minor and the fix would cost less than or not much more than your deductible, you could take care of it yourself. If you have had to unfortunately file multiple claims and your premium increased, giving your Miami insurance agent a call to find out what discounts are available to you may help you save some cash.
Myth #5: Any and all valuables you own are covered if they are stolen. Insurance companies tend to put a limit on how much coverage is available for your valuables. It would be wise to find out the limit on your policy, and if your valuables are worth more than that, you would need to add an endorsement to your policy for additional coverage.
Myth #6: You are covered for issues that arise from lack of maintenance. Your home insurance policy only covers you from perils that are listed in your policy such as lightning and fire. An insurance company expects their insured to handle regular care of their home, they will not cover issues that arise from not performing such maintenance.
Myth #7: Flood insurance is not for people living outside a flood zone. Even if you do not live in a flood zone it does not mean that where you live is 100% free of the possibility of experiencing a flood. If a flood can happen in the Midwest, then the likelihood of it happening to you might be greater than you think. Protecting yourself from potentially being on your own if/when replacing your home and possessions would be wise.
Myth #8: Saving money on home insurance means having less coverage than you actually need. There are better ways to save money on your home insurance than skimping on your coverage. Insurance companies have discounts available to their insureds. For example, you could receive a discount for having a burglar alarm in your home or for having your home and auto policies with the same company.
Myth #9: The purchase price of your home is how much your dwelling coverage should be. This is a common mistake that people make. When you paid for your home, included in that price was the land your home is sitting on which will never need replacing. Instead, the amount of dwelling coverage should reflect what it would cost to rebuild your home in the event of a total loss. To help you determine that amount you could use a home insurance calculator or speak with an expert in the construction business.
Myth #10: Unless you purchase home insurance you will not be able to purchase a home. Technically, you can buy a home without also having home insurance, but even if you do not have a lender that requires you to have home insurance, you are better off with it than without it. Life is unpredictable and the risk of going uncovered is not worth it.
People do not like having to deal with insurance but when something happens to their home and/or their possessions, those people with home insurance are better off and most likely glad they have it. The alternative is being completely on your own and not everybody has the funds to fix any and every problem that may affect their home. If you have questions about home insurance that you want answers to and/or you are in need of home insurance, please give us a call at 305-270-2100.
At Filer Insurance, Inc., we have been providing Home, Auto and Business Insurance in Miami and South Florida since 1919. We would very much like to have you as one of our customers. Please give us call or come by our office for a free quote on your insurance.