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.