{"id":52443,"date":"2016-04-15T08:12:33","date_gmt":"2016-04-15T08:12:33","guid":{"rendered":"https:\/\/www.movoto.com\/foundation\/?p=2184"},"modified":"2016-04-15T08:12:33","modified_gmt":"2016-04-15T08:12:33","slug":"9-myths-about-home-insurance","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/9-myths-about-home-insurance\/","title":{"rendered":"9 Myths About Home Insurance"},"content":{"rendered":"

One of the requirements of owning a home, especially one that is financed, is that of having home insurance. Many homeowners\u2019 think home insurance policy will cover any and everything, but it won\u2019t. We know that it is long, boring and filled with legalese but a homeowner\u2019s policy states what it will and will not cover. You need to take time to read your policy or have your agent explain it to you, clearly. Whether you are buying your first home<\/a> or your seventh, the right homeowners insurance can give you the assurance that you will be covered when calamity strikes.<\/p>\n

Make sure that when you purchase a home insurance policy that is covers the replacement cost of your home, its contents and has adequate liability coverage. Knowing the nine following myths about home insurance will help you understand what your policy covers.<\/p>\n

Will my Insurance Premium Increase if I make a Claim?<\/b><\/p>\n

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Not necessarily, because insurance companies look at many factors before they increase rates. Before you file consider the cost of the loss or repair. If the cost is less than you deductible or it exceeds it by very little it is best to take the loss than to file a claim. Even if you have the misfortune of several claims over a few years, most insurers will work with you on your premium.<\/p>\n

Is my home covered for Flood Damage?<\/b><\/p>\n

Your home will not be covered for a flood unless you have flood insurance. Many areas require homeowners to have flood insurance because they are in a designated flood zone. If you think that your home may be subject to flooding then it would be wise to purchase flood insurance, whether it is required or not.<\/p>\n

Will my Homeowners Insurance cover Medical Bills?<\/b><\/p>\n

The medical insurance of a homeowner policy doesn\u2019t cover you or your family in the instance of a home accident. The only medical coverage on a homeowner\u2019s policy is liability insurance, to cover friend, neighbors or other people who may be injured on your property. This could be an accident due to a fall on a slippery walkway or a hole in the yard.<\/p>\n

Is your Home Insurance based on current Replacement Value?<\/b><\/p>\n

Home insurance that covers replacing your home in the event that it is partially or completely destroyed should reflect current values to rebuild and not the current market value of the home. Market value and cost to build are not the same. Market values are in constant flux but a current appraisal value, bases value on what it would cost to rebuild your home, today. Overvaluing you home can also have a negative result, costing you more per month for insurance that is not necessary.<\/p>\n

Should I inflate my Claims?<\/b><\/p>\n

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If you want your claim settled quickly, don\u2019t fudge the numbers. Insurance claims specialist\u2019s look at lists, of lost items, every day and will know if something doesn\u2019t look right. A red flag will slow the process and will cause extra scrutiny of your claim on your home insurance.<\/p>\n

Do you have an Inventory List?<\/b><\/p>\n

An insurance company isn\u2019t going to take your word about what you owned when you file a claim. An inventory list will help speed things along. You will need to include:<\/p>\n