The Truth About Homeowners Insurance
Ask 10 people what standard homeowners insurance covers and you’ll probably get 10 different answers.
Some people think their policy only covers their physical dwelling, when in fact most property insurance goes further than that. Additional structures, personal belongings and even liability protection might also be included.
Then, there are the myths suggesting that homeowners insurance covers situations it actually doesn’t.
Let’s set the record straight today:
Myth 1: Wear and Tear Is Covered
Fact: Coverage typically includes damage from fire, weather and theft. It does not cover damage due to general wear and tear or neglect. As a policyholder, it's up to you to maintain your home. This includes making routine repairs and protecting your home from pests.
Myth 2: You’re Safe in Case of Flood Damage
Fact: Although some weather-related damage is covered, such as from hail, other natural disasters may not be:
- Floods require specific flood insurance.
- Earthquakes might be covered, but sometimes they require additional insurance.
Myth 3: All Personal Belongings Are Fully Covered
Fact: Homeowners insurance covers your furniture, clothing and other personal items up to your policy’s stated limits. More valuable items like jewelry and artwork typically require an add-on policy to be fully covered. Routinely inventory your belongings to determine if your limits meet your coverage needs.
Myth 4: You Have Protection Against Any Injuries That Happen at Home
Fact: Your policy’s liability coverage protects you if a guest is hurt in your home. The same is not true for you. If you or a family member are injured at home, it would be covered by your health insurance rather than your homeowners.
Myth 5: Home Businesses Are Part of the Package
Fact: A home business requires business insurance to cover property damage and liability issues.
Need help understanding the ins and outs of your homeowners policy? Let’s chat.