Comprehending the world of insurance can be cumbersome since there are many myths and misconceptions revolving around it. These are some of the myths surrounding home insurance.
1. MYTH: It is mandatory to have home insurance.In contrast to auto insurance, it is not compulsory to have home insurance. In the occurrence that you own property or have a mortgage, banks will usually want you to get an active home insurance policy and refer to them on the policy. If you are renting property, your landlord will need you to possess a renter’s insurance.
2. MYTH: All personal property in the house are fully covered. In a regular home insurance policy, personal property and most valuables are covered up to a certain extent. Exclusive property like jewelry and art have their separate insurance package program. For such valuables to be insured additional coverage is needed up to an agreed extent of insurance. For such possessions, you will have to add coverage to your policy. Many at times, you will be asked to give evidence of their value for instance by providing a receipt.
3. MYTH: Home insurance covers the market price of the houseIn evaluating the market price of a home, several factors come into consideration. This will include the value of the land as well as the reputation of the neighborhood. However, home insurance takes care of the cost of rebuilding the house. If your house gets destroyed by fire, home insurance will provide the amount needed to restore the house.
4. MYTH: My home is protected from all disaster-related damage.Some natural and weather associated damage such as fires and tornado are covered in a home insurance program. Natural disasters like floods, earthquakes, and hurricanes require some additional coverage. It is essential to read through the home insurance policy for one to be cognizant of what is covered.After scrutinizing the terms of the policy critically then you may proceed to acquire the system.
5. MYTH: Insurance is less expensive for older homes.Insurance policies are usually expensive for older homes considering they are a high risk of something going wrong and it may be costly for the insurer to solve it. In older homes, plumbing systems are prone to breakdown compared to new homes which use advanced plumbing systems.
6. MYTH: Damages caused by termites or a bug infestation is covered.
Most insurance companies see termite damage as an occurrence that can be avoided as long as there is proper maintenance of the house. It takes time, months or even years for termites to cause catastrophic damage. Considering insurance companies cover us from circumstances that occur abruptly, termite damage is not considered a threat.
7. MYTH: My house is covered when I am away for a vacationIf you leave for vacation without taking preventive measures, you are not covered. If you go for a holiday during the “usual heating season” you are supposed to:Close down the house water supply, certify that all pipes are empty and establish that the home’s heating is controlled. If you don’t adhere to these safety measures, you will not be covered from water damage that occurs when frozen pipes burst. Consult with your insurance company the length of your vacation that will need you to take more safety measures. Like you could have someone visit your place once in a while in your absence.
