The Truth About Home Insurance: 5 Myths Dispelled

The Truth About Home Insurance: 5 Myths Dispelled

The internet is full of useful information about practically anything you could want to know. The bad news is that there’s a lot of misinformation out there, too.

If you’re trying to get correct information about home insurance, look no further. Here are the top five myths about home insurance that we are going to dispel:

Myth: You Don’t Always Need Home Insurance

Unlike car insurance, you don’t technically need to have home insurance, although there are instances where your bank or mortgage lender requires that you have home insurance.

While you technically don’t need home insurance, it would be silly not to have it given the size of your investment. A disaster can strike at any moment and you’d be left paying for potentially catastrophic damages out of pocket.

And you shouldn’t just get any old coverage. You should work with an insurance broker to ensure you have comprehensive coverage for all parts of your home both inside and out. Home insurance covers your physical home, the belongings inside, and any third party liability.

Myth: Home Insurance Only Covers Your Belongings

When you hear home insurance, it’s natural to think it only covers your home and its contents. However, many home insurance policies come with liability insurance which can cover you in the event someone injures themselves in your home or on your property. 

Beyond the odd serviceman that enters your house, home insurance also covers you and anyone else you add onto your policy like family members or a new partner. If you have a new cohabitant, talk to your broker about amending your policy.

Myth: Renovations Do Not Change Coverage

As the years go by, it is common to undergo renovations to help make your home more suitable and comfortable for your family. In most circumstances, renovations increase the value of your property and as the physical aspects of your home changes, your insurance should as well. When planning renovations, make sure to inform your insurance broker and have your policy updated accordingly to ensure that you are properly covered. Something else to note is to let your broker know when you plan to renovate so you are properly protected,  especially when contractors are involved.

Myth: Home Insurance Covers Everything If It’s in Your House

Sadly, just because you have home insurance doesn’t mean it will cover everything in your house. This is primarily because the value of the contents in your home fluctuates fairly regularly. You can ensure your belongings are covered by regularly taking an inventory of the contents of your home and getting new pieces valued. Doing this once a year can help ensure you are adequately covered.

Myth: All Types of Damages Are Covered

The basis to almost all insurance policies is that all type of damages are covered. All policies have terms, conditions, exceptions, limited coverage on certain types of risks or property. Always consult a broker who can explain in detail all the coverages and options available in the market.

There are certain natural disasters that home insurance won’t cover like flooding from groundwater or earthquakes. Depending on where you live, you can buy supplemental insurance for some types of natural disasters and water damage.

Now that all these myths are dispelled, you can better research the best insurance policy for you and your home. To learn more about how you can save money on your home insurance premium, contact an experienced member of the Bow Valley Insurance team today for a free, no obligation quote.