Homeowners Insurance: Separating myth from reality
When it comes to insurance for the things that really matter, it doesn’t pay to cut corners. Homeowners insurance is an essential part of protecting your home from unforeseen events, and is important both from a financial point of view but also because of the peace of mind it can offer. But for something so important, there can be a lot of misinformation out there. That’s why we’re digging into some of the biggest myths surrounding homeowners insurance, and helping separate fact from fiction.
Myth: Purchasing the cheapest policy is the best if I want to save money.
Reality: Purchasing a homeowner’s policy solely based on price can leave serious gaps in coverage such as an inadequate amount to rebuild or no coverage for costly repairs.
Myth: All insurance policies are the same.
Reality: The type of insurance and perils on the policy can impact coverage during claim time. You only need insurance when an event happens, such as a pipe freeze that causes costly damage. Having the wrong policy can cost thousands of dollars in out-of-pocket expenses. Some polices also have depreciation built in, meaning your home and contents will be replaced at a depreciated value or what it’s worth the day it’s destroyed.
Myth: Homeowner’s insurance covers flood damage.
Reality: Homeowners insurance doesn’t cover damage caused by a flood. A separate policy is needed to protect against this common type of damage. Whether you live in a high-risk or low-risk flood zone, heavy rains and storms can cause costly damage.
Myth: My policy will cover me in the event of a lawsuit.
Reality: Homeowners’ policies can carry different liability limits. Making sure you carry high limits can impact the policy’s ability to payout and cover any lawsuits. Something as common as someone slipping on your property could leave you vulnerable for a lawsuit.
To learn more about common misconceptions or to learn more about what kind of protection could be right for you, visit Realogy Insurance Agency.*
*Guaranteed Rate Affinity may choose to recommend Realogy Insurance to provide insurance services. Guaranteed Rate Affinity and Realogy Insurance share common ownership and because of this relationship may receive a financial or other benefit. You are not required to use Realogy Insurance as a condition for, settlement of your loan on, or purchase, sale, or refinance of, the subject property. There are frequently other settlement service providers available with similar services. You are free to shop around to determine that you are receiving the best services and the best rate for these services. Available in all states except Hawaii.