Biggest Myths of Saving Money on Home Insurance
Large life decisions such as buying a house, a car, or changing employment will require insurance decisions. Many people will have their “two cents” to offer. Some advice is sound, while others are simple myths that have been passed along. Whether the subject is pricing or needs coverage, the best and most reliable source is your trusted insurance agent. Trusted and informed are the key ingredients to choosing an insurance agent. They will be the ones that can decipher fact from myth.
Myth 1: Flooding is covered under standard homeowners’ insurance policies.
Truth: Standard homeowner’s insurance policies do NOT cover flooding. A separate insurance policy is required for flood insurance.
Myth 2: You don’t need flood insurance unless you are in a flood zone.
Truth: Some mortgage companies will require flood insurance. Recent flooding in areas that are not in flood zones have proven the need for flood insurance, whether living near a swamp or on a plain.
Myth 3: Homeowners insurance will cover injuries to your family.
Truth: The medical payments section of your policy is to protect someone other than you or your family in the event they are injured on your property. If you or your family member is hurt, medical insurance or health insurance covers injuries, which is a completely separate policy.
Myth 4: My coverage should be the purchase price of my home.
Truth: The dwelling coverage amount does not need to include the land purchase price, but it does need to cover the cost of replacing your entire home. Factors such as inflation and the roller-coaster housing industry are all considerations.