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Your home is likely your most significant and important investment, so homeowners insurance is a must. It covers damages to the structure of the building and its contents, while also guarding you against personal liability in case someone is injured on your property. However, there are many misconceptions about the subject that you should review before investing in this protection. Learn more about some of the most common ones below.

What Are Some Myths About Homeowners Insurance?

1. It Covers All Disasters

Most basic home insurance policies cover some disasters, such as windstorms, fires, falling objects, and vandalism. However, standard exclusions include flood damage and damages due to earth movement, including mudslides, sinkholes, and earthquakes. To protect your home against these emergencies, you'll need to purchase supplemental insurance.

2. It Isn’t Mandatory

homeowners insuranceUnlike auto insurance, the state doesn't mandate that homeowners buy coverage. However, if you financed the purchase with a home loan, your mortgage company will likely insist that you get homeowners insurance to protect their investment. After paying your loan, it still makes good financial sense to buy coverage, as you have a considerable amount of money tied up in the property, which you could lose quickly due to a single, unfortunate event.

3. It Protects Your Most Expensive Valuables

Your policy likely has limits on how much it'll pay for losses of personal property. Typically, this amount is half the limit on structural damage. Thus, if your home is insured for $300,000, it'll probably cover $150,000 in personal property losses. However, the policy may also limit the amount on each type of property. For instance, it may limit you to $10,000 in total jewelry losses, and only $1,500 on any individual item. Thus, if you have high-value belongings, you should discuss the best way to protect them with your insurance agent.

 

If you need help designing the right homeowners insurance policy for your family, contact IGO Insurance in Raleigh, NC. They’ve served clients throughout the state since 1970, and they represent a network of 15 respected insurance providers, meaning they can give you the best choice and value. Visit their website to learn more about their homeowners policies, or call (919) 782-1560 to request a quote.

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