Five Misperceptions about Home Insurance

There are myths and misperceptions about all forms of insurance. This includes your homeowners’ insurance. Here are five of the more common ones.

It is Difficult to Change Home Insurance Companies

We understand. Changing your home insurance may mean communicating with somebody, making a decision and clicking “Yes”. But that effort can make sure you are properly covered to today’s standards and to your expectations and may even save you money. It really is pretty simple.

Home Insurance is Required by Law

No, home insurance is not required by law in any of the 50 states. It is likely to be required by your mortgage company to protect their interests, however. There are also HOAs that may require their residents to carry home insurance to protect the integrity of the neighborhood.

Flooding is Covered Under Homeowners Insurance

This is a big misperception about home insurance. Basic homeowners’ insurance does not cover flooding. Flooding can, however, be covered by FEMA-sponsored flood insurance that needs to be acquired separately. Contact one of our independent home insurance agents to learn more about how you can qualify for flood insurance. Keep in mind there is a 30-day waiting period for flood insurance to take effect. Don’t wait until it is too late.

The Amount of Homeowners Insurance on Your Home Should be Based on Its Market Value

You actually want your dwelling protection to cover replacement value. This allows insurance to replace your home as closely as possible without over-paying for coverage or it being underinsured.

Once I Get Homeowners Insurance, I can “Set it and Forget It”

Sadly, that is what many people do with their homeowners’ insurance. It is required by their mortgage company, so they buy it upon the purchase of their home and pay it in escrow with their mortgage and tax payments. Perhaps it is time you got a no-cost, no-obligation home insurance review and price quote. Getting started is as easy as contacting one of our independent insurance agents. Do it now and start feeling good about your homeowners’ insurance again.