Misconceptions about Home Insurance that Still Confuse Homeowners

As a homeowner, protecting your home from the elements should be at the top of your priorities, and getting home insurance gives you assurance that your home will remain standing in the future, despite damage that may be caused by natural calamities.

misconceptions-about-home-insurance

Though home insurance remains to be among the most common types of policies that people get, it’s also among the least understood. Among the aspects that confuse most homeowners are misconceptions about the policies’ coverage, as they tend to believe that their policies will basically cover any damage their homes or belongings sustain. To avoid any further confusion, learn more about the common misconceptions surrounding home insurance so that you can get the best policy to protect your home.

Mold Protection

A survey conducted in 2013 showed that more than two in five American homeowners believe that their home insurance policy protects them from any damage sustained from mold. Most insurance policies, however, don’t include mold mediation, a misconception that can cost homeowners a fortune—especially when it has been caused by other problems due to negligence, like leaky piping.

Floods and Other Natural Disasters

Though floods are among the most common causes of damage inside the house, most insurance policies exclude coverage for floods, earthquakes, and other natural disasters. If you live in an area that’s particularly susceptible to floods, it’s a good idea to look into acquiring a separate policy that will protect your home from damage caused by any of these natural disasters.

Loss-of-Use

Most homeowners believe that an insurance company will likely relocate them to a hotel while the necessary repairs for a particularly beaten-up home is underway. Sadly, not all policies will include a loss-of-use provision, and being unaware of this can only put your financial situation at risk. Should you opt to have one, it will be explicitly stated in your policy, along with limitations like a maximum per diem amount.

Valuation of Losses

Should your home incur damages for whatever reason, your insurance company will rely on the estimates from an appraiser, who will then examine the extent of the damage and think of the best way to fix it. The appraiser will then estimate a value to the loss, which will then be the minimum your insurance company will pay. This value, however, should not be considered final unless you’re able to prove that your losses should be valued higher.

Now that some of these misconceptions have been cleared out, take extra care in shopping for home insurance. If possible, opt for high value home insurance solutions offered by companies like Focus Insurance Group in Decatur, GA.

Sources:

5 Myths About Homeowner’s Insurance, Forbes

Many Americans have misconceptions about homeowners insurance, Housing Wire

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