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.
Jackie Whalen
Answered on Mar 01, 2021
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
