Everybody has a preconceived notion about getting an insurance. The following are some of the largest ideas regarding home owner’s insurance:
1. Flood insurance is included in standard insurance. Flood insurance is not covered by standard insurance. You must get a separate policy for flood insurance if you feel that you need one. This is generally determined when you are selling the home and at that time you should know the type of flood plain that your home is situated.
2. Injuries to me and my family will be covered by MedPay. The standard home insurance polices includes a common feature called MedPay. It helps you by protecting you when someone other than your family (neighbor, friend, etc.,) or you get hurt while they are on your property. MedPay helps you by preventing them from suing you. For members outside your family, the maximum coverage amount for each claim is $1,000. If any member of your family or you get hurt while being in your property, only health insurance will cover that and not home insurance policy.
3. If total loss occurs, I can give any reason to the company and can claim my coverage amount. This myth is kind of true in effect. To make this myth true, you should have an inventory regarding the items that are worth anythin. Receipts, pictures, any proof of ownership, and serial numbers are important. But this list should be kept safely in case of fire to prevent any damage to it.
4. My premium for home insurance will go up if I file a claim for home insurance. If you make just one claim, it is not necessary that you will get a hike. The more the number of claims, the more the premium. Calculate both the damage and deductible and if the deductible is lesser than the claim, it is better to claim. So, it is better to get discounts with multiple insurance lines.
5. If a burglary occurs, all my valuable including electronics and jewelry will be covered. The coverage for valuables are limited and hence there are companies that will put a cap on total loss of jewelery in case of a burglary. If the jewelry value is above the cap, talking to an insurance agent and scheduling a policy endorsement for additional coverage is better.
6. Issues relating to improper maintenance is covered by my home insurance. This myth is about common sense. Any standard policy will cover only accidental damages and maintenance and keeping your home safer is your responsibility and you cannot claim for damages due to lack of maintenance.
7. In order to minimize expenditure, I should skimp on insurance coverage. As previously mentioned, combining differnt types of coverage will only save money.
8. I should make use of purchase price as dwelling coverage amount while coverage is determined. Cost of land on which the home is located is included in the purchase price. While total loss occurs, you needn’t replace that. Rebuilding cost is only cost that you need to cover and this amount can be easily calculated by your agent.
9. Home owner’s insurance is a must for you to buy a home. This is technically false. Even though it is better to have a home insurance, it completely depends on you whether to insure or not if you are paying cash for a home.
