Homeowner’s insurance is one of the most common types of personal liability insurance. Unfortunately, it’s also one of the least understood. There are a lot of myths and half-truths surrounding homeowner’s insurance, almost all of which can end up costing you a lot of money in the long run. To set the record straight and make sure you have the right policy for your needs, here is the truth behind some common homeowner’s insurance myths.
Most homeowners assume that anything lost in a fire or flood will be replaced with new items. However, the bulk of policies do not carry this clause, which is referred to as replacement cost. If not included in your homeowner’s insurance policy, losses will be valued at what they were worth in their condition before the accident. Check with your insurance agent about the replacement loss clause in your policy.
Speaking of flood damage, did you know that almost all homeowner’s policies exclude flood coverage? In most cases you will need to add flood coverage to your policy separately, either through your insurance provider or through a disaster insurance company. If you live in an area susceptible to flooding, your mortgage company may require this additional coverage.
Homeowners also assume that if severe damage causes their home to be uninhabitable their insurance company will put them up in a hotel while the repairs are being done. However, this is not necessarily true of all insurance policies, as not all policies include a loss-of-use provision. If this is an important feature, make sure a loss-of-use provision is explicitly stated in your homeowner’s insurance policy.
For help understanding the ins and outs of homeowner’s insurance, call Damberger’s Insurance Agency. For over 50 years, our agents have helped homeowners in Mountain View secure the best prices and the best coverage for their needs. Visit our website to learn more about our homeowner’s insurance policies or call us at (866) 982-9181 to speak with one of our agents about your insurance needs.