A house is one of the most expensive investments one makes, and an important thing to remember for protecting his place is to set up a home insurance
A house is one of the most expensive investments one makes, and an important thing to remember for protecting his place is to set up a home insurance policy. A home insurance policy might not seem important to you unless you consider the possibilities of natural disaster, theft, or any unfortunate events like fire, flood, etc.
But before you buy a home insurance policy, you must know a few myths or misinformation. Understanding the same will help you avoid this unpleasant surprise when you learn that your loss is not covered by the policy or when you know that you have spent money out of your pocket when your insurance could have covered you.
Below are six common myths about Home Insurance to help you stay out of trouble.
Standard home insurance covers your damages related to water
Standard home insurance will cover the water damages only if that damage is caused due to a burst pipe or popped waterbed that is within your home. Sometimes, water damages can be more severe than the damage mentioned above, like heavy rainfall or a sewer backup. As an external source, your standard home insurance will not cover your damage. However, you can always buy an additional water damage insurance policy to cover your water damage to your personal belongings and property.
Standard home insurance covers all your personal belongings
It is likely that most of your personal belongings will be covered by standard Home Insurance, but the concept of personal belongings varies from person to person. It is important that you go through the policy to understand what kind of items will be covered by your insurance policy. Standard home insurance will likely not cover valuable artifacts or valuable jewelry, in case you have any. For that, you will have to get additional insurance coverage.
Home insurance is Compulsory
One of the most popular myths about home insurance is that the law requires you to buy home insurance, but it’s mostly wrong in all 50 states. But it is important to note that your lender will likely need you to buy home insurance. If your home goes through any damage, it is practically impossible or extremely expensive to rebuild it from your pocket.
And lenders understand the pain of this situation thoroughly. This is why they require you to buy home insurance, as they protect their investment in your home.
Standard home insurance doesn’t include “acts of God” or natural disasters.
This depends on the nature of the disaster. But it is false for most natural disasters because standard home insurance will cover disasters like windstorms, hurricanes, wildfires, ice storms, etc.
But when it comes to earthquakes, some places exclude them from their standard insurance and instead offer them as additional protection. But apart from the location, it also depends on the company. Therefore, it is always better to understand the most important points of your policy before buying your insurance.
Older Homes Are Cheaper to Insure
This is hardly the case. It may seem that insuring older houses will be cheaper, but you will be surprised to know that some insurance policies may have the opposite effect. Older houses are more expensive to repair or rebuild due to different building techniques. Apart from that, older homes are also likely to have different materials used in their construction.
Home insurance is not necessary
This is one of the myths that most homeowners like to believe. Floods, earthquakes, large fires, theft, etc., are hypothetical situations, as if they happened, your insurance will cover you.
But no matter how hypothetical these situations are, they are real dangers that have not yet occurred. And, by buying home insurance that also covers the damages that your guests incur, you can remain financially secure. You will also find that your home insurance can be your savior should an unfortunate event occur in your home or a person in it.
Ready to get Home Insurance
Above are the only common myths about home insurance, but there are many others that vary by location or state. If you want to buy home insurance or are looking for more details or quotes, you can contact the Oyer Insurance Agency, which provides home insurance in Wooster, Ohio. Oyer Insurance Agency can help you with all the details you need to know before buying your insurance.