Homeowners’ insurance provides valuable financial protection, but many people misunderstand what their policy actually covers. Believing common myths can leave homeowners with unrealistic expectations when it’s time to file a claim.
Let’s separate facts from fiction.
Check out our guide below for proactive steps to take to protect your home.
Questions? Reach out to one of our knowledgeable insurance agents. We’re eager to set you up with the right coverage and rate!
Myth #1: My homeowners insurance covers everything.
Fact: Every policy has limits, exclusions, and conditions. It’s important to understand exactly what your policy covers.
Myth #2: Flood damage is covered by homeowners’ insurance.
Fact: Standard homeowners insurance policies typically do not cover flood damage. Separate flood insurance may be needed depending on your location and risk.
Myth #3: I don’t need to update my insurance after renovating.
Fact: Home improvements can increase your home’s replacement cost. Updating your policy can help ensure your coverage keeps pace with those changes.
Myth #4: My premium is based only on whether I’ve filed claims.
Fact: While claims history is one factor, premiums may also be influenced by construction costs, severe weather trends, your home’s characteristics, and broader insurance market conditions.
Myth #5: Homeowners insurance covers routine maintenance.
Fact: Insurance is designed to help with sudden and accidental covered losses, not normal wear and tear or deferred maintenance.
Myth #6: I only need to review my policy when I move.
Fact: Reviewing your policy annually can help ensure your coverage reflects changes to your home, belongings, and lifestyle.
Understanding what your homeowners’ insurance does, and doesn’t, cover can help you make informed decisions and avoid surprises when you need your policy most.
Have Questions About Your Coverage?
Insurance doesn’t have to be confusing. Our knowledgeable agents at Cornerstone Insurance Agency are here to answer your questions, explain your coverage, and help you make informed decisions. Contact us today to speak with an agent and review your homeowners’ insurance policy.
This article is for informational purposes only. You should not act based on this information without first consulting with your insurance agent; if you would like a quote from a Cornerstone Insurance Agency licensed agent, contact us. We disclaim all liability for actions taken or not taken by you based on the contents of this article which is provided “as is.” Cornerstone makes no representation that this content is error-free.