Myth 1: Standard policies include coverage against flood.

Fact: All insurance providers do not include any flood coverage into their standard policies. In case you require this type of coverage you can purchase I either as an addition to your current policy or as a separate policy.

Myth 2: The Medical Payment part of the policy will pay for the injuries I and my family have sustained.

Fact: The Medical Payment part of a standard home coverage policy is designed to pay for the injuries any third party suffers at your property. Whether a friend, visitor, neighbor or worker gets injured within your premise the MedPay coverage will pay up to $1,000 per claim. However, nor you not any of your family members will be covered by this type of coverage as your medical policy takes force in such situations.

Myth 3: In case my home is completely destroyed the insurance company will pay for anything I tell them I had in the house.

Fact: In case your house gets destroyed due to different circumstances you insurance company will always ask you to make an inventory of all the items you have had in the house, including specific data like serial numbers, purchase prices and so on. If you cannot provide such information you won’t be reimbursed for the items lost. The best way to assure proper coverage of any lost items, you should make an inventory of all the items you have now with detailed information on every piece of equipment, jewelry, furniture or any other item.

Myth 4: Filing an insurance claim will automatically raise my premium

Fact: It all depends on how frequently you’re filing claims. If you have insurance situations once every few years, your premium might stay at the same level. If you’re filing claims on a regular basis, especially with no substantial reason for doing so, your premium will definitely go up. First of all, think whether you really need the coverage if the damage is minor and try to avoid filing claims too often.

Myth 5: Valuables like jewelry and furs will be paid for if stolen

Fact: Standard homeowners insurance policies have a limit on the amount of coverage used to pay for the stolen valuables like jewelry. Most policies limit this amount to $1,500, so if you feel you need more coverage on this specific type of risk you can purchase additional coverage and include it into your policy.

Myth 6: Flood coverage is useful only if you live in a flood area

Fact: Flood insurance coverage is strongly insisted in special flood zones, especially by mortgage companies that finance the purchase of new homes. However, if you live in a low risk zone it doesn’t mean that you shouldn’t carry flood coverage with your homeowners insurance policy. A damaged water-pipe, heavy showers and even a broken dishwasher can lead to flood damage in your home, which otherwise won’t be covered by yours standard policy.

Myth 7: It is impossible to buy a home without homeowners insurance

Fact: In most cases you can actually purchase a home without having any insurance. However, most mortgage companies include strict requirements on certain types of coverage you have to buy in order to get the necessary financing if you’re purchasing your home using a mortgage loan.

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