Everyone who owns a home should have homeowners insurance. This policy is crucial because it protects the home against common dangers, such as theft or fire damage. There are some common misconceptions about this coverage that confuses many new homeowners. Before you start comparing policies and quotes, it’s best to separate myth from reality.

Common Misconceptions About Homeowners Insurance

1. You Don’t Need an Inventory of Belongings

When you sign up for a policy, it is best to take inventory of valuable items. This inventory may include irreplaceable family photographs, heirlooms, jewelry, and documents such as a birth certificate. This inventory will maximize the reimbursement if you need to file a claim for any of those items.

2. Submitting a Claim Raises Your Premium

Submitting a single claim will not suddenly increase the cost of your coverage. The cost may increase if you submit multiple claims in a short period of time.

If damage occurs, such as a fire, get an estimate from a fire restoration team for the repairs. If it’s around the same amount as your deductible, then it’s worth it to pay it yourself so you avoid unnecessarily submitting a lot of small claims.

3. Your Renter’s Belongings Are Covered

If you have tenants in your home, everything they own is not automatically covered. They will need to get their own renter’s insurance policy to cover the cost of replacing stolen or damaged belongings. The policy will cover the home itself and only your belongings.

4. The Home’s Market Value Is Covered

If your home is completely destroyed due to a fire or a hurricane, the insurance will help you rebuild the structure. The policy covers the cost of rebuilding the home with similar materials rather than reimbursing you for its current market value.

Dewey Beckner: Allstate Insurance will help you find the right homeowners insurance policy in High Point, NC. After 20 years in the business, he has provided homeowners with comprehensive insurance that protects their belongings. He offers policies that cover damage to the home and its structures, such as a detached garage or fence. Learn more about his policies on his website and call (336) 884-5636 to request an insurance quote.