If you own a home, you need homeowners insurance. This type of insurance protects your interest in case something happens to your home or something happens at your home.
Although homeowners insurance is one of the most common types of insurance, certain myths about it still abound. The following are a few common myths about homeowners insurance:
- Any disaster is covered—While many types of perils and disasters are covered under most homeowners insurance policies, some aren’t. For example, most home insurance policies don’t cover damage caused by a flood.
- Insurance will cover the cost of rebuilding—If something happens to your home and you need to rebuild, your homeowners insurance policy won’t necessarily cover the entire cost of building a new house. Instead, your policy will cover the building process up to a certain amount.
- Everything inside my home is covered—Most homeowners insurance company provide some personal property coverage. But if you have a valuable collection of something, like jewelry or coins, your policy will likely not cover the entire cost of replacing these valuables.
- Whether I have home insurance is my choice—Homeowners insurance isn’t just something that is nice to have. Chances are if you have a mortgage on your home, your homeowners insurance company requires that you maintain a policy.
What you pay for homeowners insurance depends on many different factors. Some of these include the age of your home, any upgrades you’ve done to your home, security features you’ve added to your home, your home’s location, and more.
