What are some common myths and misconceptions about home insurance?

I don't want to fall into any traps or have any regrets after buying home insurance. What myths and misconceptions should I be aware of?

Answer
First off, many people think that their home insurance policy covers flooding, which is defined as excessive water on land that’s usually dry. You actually need a separate flood policy to cover damage from flooding.
Another misconception is that all of the personal property in the home will be covered if the home is destroyed. Possessions such as furniture and clothes are covered, but you need to get special coverage for antiques, artwork, and expensive jewelry. Items like that are typically covered under a personal article floater.
Many people also believe that they should insure their home based on the market value, or what the home could sell for. The home should actually be insured for the builder’s cost, or what it would take to rebuild the home from the foundation up.
To be sure you are getting the correct coverages on your home, speak to a licensed insurance agent.
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Jackie Whalen
Answered on Mar 01, 2021
Jackie Whalen has been in the insurance industry for over 7 years, working in sales, service and claims. She has won numerous awards as a top salesperson and customer service agent. She currently lives in New York with her husband. Her 24 year old son recently moved out on his own which has given her more time to travel, write and train her dog Maisy not to chase her cat, Whiskey.
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