The truth behind common home insurance myths.
When it comes to homeowners insurance, it’s important that you don’t believe everything that you hear. There are many common misconceptions circulating about home coverage. To ensure that you aren’t buying into a myth, here are some of the most common misconceptions explained for your benefit.
1) “Homeowners Insurance Is Not Mandatory”
While it’s true that home insurance is not a legally regulated form of coverage, this does not mean that you can get away without securing this type of insurance. This is because most mortgage lenders will require homeowners to carry home insurance in order to protect their investment. Even if you do not have a home loan, you should still secure a home insurance policy. This is because this coverage is the only thing that will protect your assets in the event of a personal liability or property damage claim.
2) “Securing Home Insurance Automatically Means You Have ‘Full Coverage'”
Contrary to popular belief, not all homeowners policies are made equal. In fact, there are several different types or forms of home insurance such as:
- Basic Form (HO1)
- Broad Form (HO2)
- Special Form (HO3)
- Tenants Form (HO4)
- Comprehensive Form (HO5)
- Condominium Unit-Owners Form (HO6)
- Modified Coverage Form (HO8)
While HO3 policies offer the most coverage, even these policies will not provide total coverage for your home. Generally, homeowners need to supplement their home policies with personal umbrella insurance to secure the comprehensive coverage that they need.
3) “Lowering My Premiums Means Lowering My Coverage”
While you may assume that the only way to lower your rates is by reducing your coverage limits, there are other ways to make your home insurance more affordable. For instance, making safety upgrades to your property, accessing discounts, bundling your policies, and raising your deductibles are all ways that you can save without compromising your coverage.
Don’t buy into these home insurance myths. Do you have further questions regarding your homeowners insurance? If so, then contact the experts at Scautub Agency in Scotia, New York. Our dedicated team is eager to assist you with all your coverage needs today.