Common Home Insurance Myths Explained

Buying into these insurance myths could leave your home vulnerable.Common Home Insurance Myths Explained

For many homeowners, securing and managing their homeowners insurance is a tricky task.  This task is made even more difficult due to the proliferation of myths surrounding this coverage.  To ensure that your coverage is not compromised, here are some of the most common homeowners insurance myths explained.

Myth 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.

Myth 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.

Myth 3: Home Insurance Will Cover All Natural Disasters

While your homeowners insurance will offer coverage for things like wind, rain, and hail damage, not all natural disasters are covered under standard home insurance policies.  Even homeowners with an HO3 policy face coverage exclusions for disasters such as flooding, earthquakes, landslides, pest infestations, and sewer backups.  If your home is located in an area prone to these hazards, then you will need to secure specialty insurance policies to cover these specific perils.

These are some of the most common homeowners insurance myths that you should know about.  Do you have questions regarding your home coverage?  If so, then contact the experts at Desert Empire Insurance.  We are ready to assist you with all your coverage needs today.