8 Home Insurance Misconceptions
Your Massachusetts home insurance may be one of the most important things you purchase as a homeowner. If you have a mortgage, you’ll likely be required to have it, and if you don’t, it’s worth the investment to protect the home you love. Because it’s so important, we wanted to clear up some of the common misconceptions about homeowners insurance.
- Exaggerating your losses is not okay, and you will be caught. Insurance companies can and will investigate claims. Saying your television was the latest 4k ultra HD or that your computer was worth a few thousand dollars could easily be disproved, resulting in dropped coverage or a denied claim.
- Injuries you sustain at home aren’t covered by your homeowner’s insurance. You’ll need to handle those claims through your health insurance. Only the injuries of guests are covered under your home insurance policy.
- Home insurance should be based on the replacement value of your home not the market value. Market value can and will fluctuate, both up and down. If you suffer a complete loss, you want insurance that will cover the cost of rebuilding your home from the ground up.
- Your standard insurance policy doesn’t cover everything. Certain natural disasters won’t be covered – like earthquakes or hurricanes. All of your valuables may not be covered, either. If you’ve got rare collectibles, high value art, or expensive jewelry, you will likely need extra coverage. For those who invest in high-end technology, you may want to consider it, too.
- Older homes are often more expensive to insure. Many people think that older homes will be cheaper to insure, but with higher rebuild and repair costs and older building code standards, they can actually be more expensive to insure.
- Flood damage is not covered by your standard policy. In order to be covered in the event of a flood, you have to purchase a separate policy. Even if you’re not in a flood zone, flood insurance is a good idea.
- If you’re not maintaining your home, your insurance isn’t going to cover mold damage. Most mold issues can be prevented with proper maintenance. Do what you can to prevent mold because your homeowner’s insurance likely won’t cover the damages.
- Sewage backup isn’t automatically covered by your standard policy, either. However, you can add additional coverage so that you’re protected in the event of a nasty problem.
Knowing what your standard home insurance policy covers is a good starting point. Making sure to add on any additional coverage you need most is the next step. Contact us today and one of our agents will be happy to review your existing coverage to make sure that your home has all of the necessary coverages in place.