Four Common Myths of Home Insurance

by: Valerie Hawkins

Your home is full of lots of stuff. Big stuff, little stuff, new stuff, old stuff. And whether it’s a prized possession or a junky hand-me-down, it’s still your stuff, and it needs to be protected. (Is it me, or is stuff a funny word?)

You know you need home insurance, but you may have also heard some nasty rumors about it. What’s covered and what isn’t?

Worry no more. We’ve debunked some of the top home insurance myths for you. 

Myth #1: A policy covers great-grandma’s wedding ring

Fact: Just like most insurance policies cover damage to your home up to a certain dollar amount; valuable, personal belongings are also only covered up to a certain dollar amount. If you have fine jewelry, expensive artwork or valuable heirlooms, it’s a good idea to get additional coverage for those high-value items. Although those items may be irreplaceable, you can at least try, right?

Myth #2: All in-home injuries are covered

Fact: If your friend slips and falls on ice on your property, your home insurance policy’s medical payments typically helps cover medical claims that are filed. However, if you or another resident were to fall on that same patch of ice, your health insurance will kick in to cover those claims. Clear as ice? Err…mud?

Myth #3: Your home business is covered in your policy

Fact: What would happen to your business if you lost all your inventory to a house fire? If you run a small business out of your home, it’s important to purchase a separate insurance policy or add coverage to your current home policy to cover any business liability or equipment. Those items are typically not covered under your standard home insurance policy.

Myth #4: Ain’t nobody got time to inventory their things

Fact: If I snapped my fingers and made all your stuff (there I go with stuff again) disappear, would you be able to jot down a comprehensive list of everything you own? Doubt it.

So write it down now! Quick! Before I snap my fingers!

Yes, that sounds like a lot of work, but we’ve made it easy for you! Take 10 minutes to follow these simple steps, and that’s less work you’ll have to do come claim-time.

Like most other insurance policies, your home insurance has limitations to what is covered and what isn’t. Your policy can give you coverage for many different risks you face as a homeowner, but what’s protected varies depending on the policy you choose.

Bottom line is take simple steps to understand your home insurance policy thoroughly. Get started by consulting with your representative to learn about the exact coverage you have.