Your home is your sanctuary from the world. Besides providing all the amenities tailored to your unique tastes, the space creates memories and warmth for everyone who lives there. Homeowners insurance offers additional protection from unexpected events. Unfortunately, misinformation about coverage can be costly. Here are several common myths about this important policy and what’s really true.

Common Misconceptions About Homeowners Insurance

1. My policy will pay flood damage repairs.

Natural floods are not covered by homeowners insurance. You will need to purchase a separate flood insurance policy through an agent who participates in the National Flood Insurance program. If you live in a designated flood zone, your mortgage lender will require flood insurance. Even if you don’t live in a flood-prone area, additional coverage can offer financial peace of mind.

2. All my personal property is covered.

Certain items may need additional coverage, such as expensive jewelry, artwork, musical instruments, and other high-end valuables. Have these possessions professionally appraised so that if they’re damaged or stolen, you have more leverage for maximum recovery. Appliances, furniture, electronic equipment, and clothing are among the items that most homeowners insurance policies cover.

3. Medical expenses for all injured persons are covered.

If a guest is injured while in your home or on the surrounding property, a standard homeowners insurance will take care of their medical expenses. Depending on the policy, recovery costs may also include wage loss and legal claims. However, the protection does not extend to you or family members who sustain injuries. In these cases, you must submit a claim to your health insurance provider.  

4. My insurance should match my home’s market value.

If your insurance is based on your property’s current market value, you might not have enough finances to rebuild if a fire or other catastrophe causes significant damage to your home. Consider coverage that takes into account your home’s full replacement cost, which includes construction, parts, and labor. 

5. I don’t need homeowners insurance if my mortgage is paid off.

Once the mortgage is paid off, you now own your home. While you no longer need to abide by the lender’s requirement to have homeowners insurance, no coverage is a huge financial risk. You would have sole responsibility for all out-of-pocket costs should something happen to your house. Maintaining coverage eliminates this risky scenario.

If you want to take the necessary steps to protect your home, Town and Country Insurance Agency in Waynesboro, VA, will take the time to answer your questions. Their proactive approach prevents confusion if you need to submit a claim. Serving Augusta County, the independent firm will compare homeowners insurance rates from several leading carriers to ensure you’re getting affordable and reliable coverage. To get started, call (540) 221-2465 for a free insurance quote. You can also visit their website for information on the agency’s full suite of services.