{"id":1245,"date":"2024-11-18T17:36:34","date_gmt":"2024-11-18T17:36:34","guid":{"rendered":"https:\/\/www.acceptanceinsurance.com\/blog\/?p=1245"},"modified":"2024-11-18T17:47:14","modified_gmt":"2024-11-18T17:47:14","slug":"common-myths-debunked","status":"publish","type":"post","link":"https:\/\/www.acceptanceinsurance.com\/blog\/common-myths-debunked\/","title":{"rendered":"10 Common Home Insurance Myths Debunked"},"content":{"rendered":"\n

With all of the steps you take and the decisions you make in buying a home, you might not give homeowners insurance<\/a> the attention it deserves. In fact, you might think you already know all you need to know on the subject. <\/p>\n\n\n\n

But there\u2019s many things people may not know about homeowners insurance, including whether certain beliefs are homeowners insurance facts or myths. For instance, what exactly does homeowners insurance cover<\/a>? Are premium rates fixed? To shed light on these uncertainties, here are ten common myths about home insurance and the truths behind them. <\/p>\n\n\n\n

Myth 1: Homeowners Insurance Is Too Expensive and Not Worth the Cost<\/strong> <\/h2>\n\n\n\n

Your home lender certainly doesn\u2019t think that\u2019s true. You\u2019ll almost certainly have to prove you\u2019ve obtained coverage before you get your loan. That\u2019s because your lender can imagine your home burning to ash and then finding there\u2019s no homeowners policy, and their customers can\u2019t afford to continue making mortgage payments on a home that no longer exists. And there\u2019s only an empty lot to foreclose on. <\/p>\n\n\n\n

That would be their worst nightmare. <\/p>\n\n\n\n

The median sale price of an American home today<\/a> is just over $428,000. Could you pay the cost of renovating out of pocket after a serious house fire? Most Americans couldn\u2019t. That\u2019s why you have homeowners insurance in the first place. <\/p>\n\n\n\n

You\u2019ll benefit in many other ways, too, from liability protection against lawsuits to paying the medical bills of visitors injured on your property to temporary housing while your home is being rehabbed after a fire or other devastating event. In addition, most policies will also cover your possessions in a self-storage facility or even in your car. Ask your agent to explain in detail the many ways your policy is worth more than the price. <\/p>\n\n\n\n

Myth 2: All Your Personal Belongings Are Fully Covered<\/strong> <\/h2>\n\n\n\n

It\u2019s the word \u201cfully\u201d that makes the above statement a myth. Yes, your personal possessions are covered in the case of theft, vandalism, fire, and other damaging events. But your standard homeowners policy contains monetary limits on your personal items coverage \u2014 usually $1,000 or $1,500. <\/p>\n\n\n\n

For most of your possessions, that\u2019s adequate. But not if you own valuable art, antiques, jewelry, or other goods. Take inventory of your possessions and list everything of higher value. Then, consult your agent about getting a rider or additional coverage specifically on those items. The cost isn\u2019t high, especially against the peace of mind you\u2019ll gain knowing that you are now fully covered financially. <\/p>\n\n\n\n

Myth 3: Homeowners Insurance Covers All Types of Damage<\/strong> <\/h2>\n\n\n\n

All water heaters eventually break down. It\u2019s inevitable. And not covered by your insurer. The purpose of homeowners coverage \u2014 like all forms of insurance \u2014 is to financially protect against the unexpected or unpredictable. <\/p>\n\n\n\n

You can\u2019t predict a tornado will rip the roof off your home, so you can certainly file a claim under that circumstance. On the other hand, if you have a 30-year-old roof that you\u2019ve never patched or repaired, it will eventually leak in a rainstorm. If it does, you can\u2019t file a claim for expensive office equipment ruined in the deluge. <\/p>\n\n\n\n

As homeowners, it\u2019s always your responsibility to stay on top of upkeep and maintenance. Call your agent for unexpected damage (or a fuller understanding of what homeowners insurance actually is<\/a> and what it does and doesn\u2019t cover). <\/p>\n\n\n\n

Myth 4: Home Insurance Premiums Are Fixed and Non-Negotiable<\/strong> <\/h2>\n\n\n\n

The truth is you have plenty of say-so in controlling the cost of your coverage. First, let your insurance agent offer you a quote. That\u2019s your starting point. <\/p>\n\n\n\n

You can get a better rate if, for instance, you raise your deductible. Your deductible is the dollar amount you agree to pay out of pocket for a covered claim before your insurer pays the rest. If your insurance quote comes with a $1,000 deductible, ask what your rate will be if you double your deductible. Your rate will go down because you\u2019re assuming more of the cost of a claim, which means your insurer will pay less. <\/p>\n\n\n\n

There\u2019s a possible downside, of course. If it costs $20,000 to replace that tornado-destroyed roof, you\u2019ll have to pay twice as much out of pocket with the higher deductible than you would with the lower quoted amount. Can you afford to pay $2,000 for damage recovery? If not, you might be better off paying more per month for your premiums but less upfront in emergencies. <\/p>\n\n\n\n

Another method of lowering that quote is by adjusting the coverage limits. You can also often earn a lower rate by \u201cbundling\u201d your coverage. That involves using the same insurer that covers your vehicles, life insurance, or other policies, and taking advantage of the discounts triggered by the additional business.\u00a0<\/p>\n\n\n

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Myth 5: Filing a Claim Will Always Increase Your Premiums<\/strong> <\/h2>\n\n\n\n

Untrue. Homeowners insurance would never be the necessity it is if claims never needed to be filed. Your insurer knows that bad things happen and won\u2019t be shocked or offended when you check in with a claim. <\/p>\n\n\n\n

It\u2019s only those making multiple or sketchy claims that concern insurers. In some circumstances, they might raise rates against those offenders, hoping they\u2019ll go elsewhere. <\/p>\n\n\n\n

Just remember your deductible. If it\u2019s set at $1,000 and you receive damages that will cost $1,200 to repair, is it worth filing a claim? You\u2019ll only be reimbursed $200, and you might want to keep the slate clean in the event that you must make a more costly claim at some point down the road. <\/p>\n\n\n\n

Myth 6: Only Homeowners Need Homeowners Insurance Coverage<\/strong> <\/h2>\n\n\n\n

If a tree limb of yours snaps off in a windstorm and falls on a passing pedestrian, that victim will be thankful that you have home coverage. <\/p>\n\n\n\n

Your coverage doesn\u2019t just cover damage to your home. It will also pay for the medical care of those hurt in your home or as a result of your property. Dog bite injuries are covered, too. <\/p>\n\n\n\n

And finally, your policy has liability protection to pay for your legal bills and the financial damages of those who successfully bring lawsuits. In short, your coverage can be beneficial to many people who might not even own a home. <\/p>\n\n\n\n

Myth 7: Flood Damage Is Covered by Standard Policies<\/strong> <\/h2>\n\n\n\n

This homeowners myth could cost you a world of loss if you believe it and don\u2019t get flood insurance when you need it. Floods can cause such devastating structural damage that standard policies rarely, if ever, cover the weather event. (This doesn\u2019t refer to internal flooding, such as that caused by a broker water pipe. That type of damage is usually covered.) If you\u2019re moving into a high-risk flood plain, you\u2019ll be required to have separate flood insurance if you buy your home with federal mortgage support. <\/p>\n\n\n\n

Myth 8: Location Has No Impact on Home Insurance Rates<\/strong> <\/h2>\n\n\n\n

It certainly does. Remember those floodplains? Similarly, if you buy a home in a heavily forested area of California, your insurer might set rates based on the risk of wildfire damage. Similarly, hurricane risk can elevate your rate if you buy on the Gulf Coast. <\/p>\n\n\n\n

It\u2019s not all about weather risks. If you live in a city, neighborhood, or even street with a lot of break-ins or acts of vandalism to nearby homes, you\u2019ll likely pay more. Once again, your insurance agent will be able to explain any rate-increasing risks related to your address. <\/p>\n\n\n\n

Myth 9: Older Homes Are Cheaper to Insure Because They\u2019re Less Valuable<\/strong> <\/h2>\n\n\n\n

Count on it costing more to insure a multi-million-dollar century mansion on your city\u2019s most upscale street than the newly constructed cookie-cutter $300,000 townhouse. <\/p>\n\n\n\n

Remember, it\u2019s all about your insurer\u2019s perception of the likelihood you\u2019ll file a claim and what that will cost the insurer. An older home with a slate roof or marble entry hall will be hard \u2014 and costly \u2014 to replace, so you might pay more to insure your century home than if you have new construction. It depends on a lot of factors that your insurance agent can explain when you ask about coverage costs, regardless of the age of your home. <\/p>\n\n\n\n

Myth 10: Insurance Will Cover the Market Value of Your Home<\/strong> <\/h2>\n\n\n\n

This homeowners insurance myth is true\u2026sort of. If your home burns to the ground, your insurer will cover the losses based in part on the value of similar homes in your same neighborhood or street. <\/p>\n\n\n\n

Fair enough. But what if you just recently completed a $50,000 kitchen remodeling or added on a state-of-the-art home office? Will you be reimbursed for that? <\/p>\n\n\n\n

Only if your insurer knew about the extensive remodeling or addition and was already including it in the premiums you pay. The lesson here is to consult your agent whenever you spend significantly on upgrading your home. If you experience a major loss, you\u2019ll be glad you did. <\/p>\n\n\n\n

Make Sure Your Home Is Covered<\/strong> <\/h2>\n\n\n\n

Enough common home insurance myths. Consult with your independent Acceptance Insurance agent when you need clarity and coverage. You\u2019ll always get the lowdown on buzzwords, rates, benefits, and how to read your homeowners policy documents<\/a>. <\/p>\n\n\n\n

Call us at (877) 405-7102<\/a> or get a fast quote online<\/a>. You can also find an office near you<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"

With all of the steps you take and the decisions you make in buying a home, you might not give homeowners insurance the attention it deserves. In fact, you might think you already know all you need to know on the subject.  But there\u2019s many things people may not know about homeowners insurance, including whether […]<\/p>\n","protected":false},"author":8,"featured_media":1251,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[17,19],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/1245"}],"collection":[{"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/comments?post=1245"}],"version-history":[{"count":2,"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/1245\/revisions"}],"predecessor-version":[{"id":1252,"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/1245\/revisions\/1252"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/media\/1251"}],"wp:attachment":[{"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/media?parent=1245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/categories?post=1245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.acceptanceinsurance.com\/blog\/wp-json\/wp\/v2\/tags?post=1245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}