Fact: Flood Insurance Usually is a Separate Insurance
Most people assume that every home insurance policy has coverage for all natural incidents. While homeowners policies do cover several events like fire, a flood is not one of them. Flood insurance can be purchased separately through insurance carriers or the Federal Emergency Management Agency. This insurance is required for flood-prone areas, but you can still get one even if your home is far from flood zones.
Myth: Coverage Limit Must be Equal to Home’s Value
Fact: Coverage Limit Should be Equal to Rebuilding Cost
When getting a policy, several homeowners base the coverage limit for their home on how much they bought the house. While it may look like a smart tactic to do, it is not a safe assumption to take. Instead of considering the purchase amount, look at the possible cost of repairing or rebuilding your home when deciding the coverage limit. The goal of your coverage limit is to provide you funds to rebuild the house.
Myth: My Insurance Covers Injuries in the Home
Fact: Coverage is Dependent on Who Got Injured
Homeowner’s policies do provide coverage for events of physical injury; however, the coverage is dependent on who got injured. If the homeowner or a family member living on the home is injured, claims go against your health insurance coverage. If the person injured is a guest and files a lawsuit, then the home insurance’s liability protection takes effect. The liability protection handles any legal fees on the lawsuit, up to the liability limit of the coverage.
Myth: Home Insurance Covers All Valuables in the Home
Fact: Home Insurance Provides Limited Coverage for Items
Many homeowners have precious jewelry or precious items in their homes and presume that their policy covers all. Unfortunately, most home insurances have limited theft coverage for stolen valuables, which is usually less than $2,000. If your valuables are valued more than the coverage amount, you may need to add an endorsement to your policy.
There you have some common misconceptions people have about their policies. Check with your agent today to see what your coverage offers.
At Western Pacific Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at 702-932-3105. You can also request a free quote by CLICKING HERE.