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Common Home Insurance Misconceptions

Myth #1: I Should Buy Home Insurance Coverage Based on the Market Value of My Home 

While it may seem reasonable to buy home insurance coverage based on the real estate market value of your house, you actually want to buy coverage based on what it would cost to RECONSTRUCT your home. That number may vary more than you think. If you live in an area that doesn’t have a good housing market, your home may cost significantly more to rebuild, and vice versa for areas with strong housing value. Our insurance agents can help you with those calculations should you have questions! We will also help you reevaluate your insurance plans annually to make sure that your coverage is up to date.

Myth #2: I Should Overstate the Value of Damage So My Insurer Doesn’t Lowball My Claim Though there are stories of claimants who have trouble recovering their losses, this is not the way to handle a dispute! If you tell your insurance company that your 60-inch tv was stolen and then they find out it was, in fact, a 40-inch, your trustworthiness instantly goes away and it will be much harder to recover your losses. Most insurance adjusters are familiar with manipulation tactics and can spot deception easily. If you do not get a fair settlement, then filing a dispute with your insurance company is a much more productive step.

Myth #3: My Home Insurance Policy Covers Everything in My House Unfortunately, this isn’t always true. Standard home insurance policies have limits on coverage for certain possessions, especially those that are more expensive and risky. To have coverage for items such as trampolines, pools, jewelry, and rare art, you need to make sure that those are listed in your policy. Talk to our home insurance agents if you have questions about additional home insurance coverage for more expensive items.

Myth #4: Older Homes Are Cheaper to Insure Not always. While the materials may be older, they are not necessarily less value. Older homes tend to have construction that is more expensive to replace, such as crown molding, hardwood floors, stained class, brick, etc… Value is determined by the cost of replacing or repairing your home, which includes its features, not necessarily its age.

Talk to Our Home Insurance Experts About Your Policy If you have further questions about your home insurance policy, don’t hesitate to talk to our agents as soon as possible! We’ll walk through your current policy and make sure you are up to standards on anything and everything related to your home. Our goal as independent agents is to make sure that YOU have the most comprehensive policy for the lowest price. We don’t work for any one insurance company, so we’re able to get you the best deals without any obligations to a carrier. Call us at (888) 840-4020 or get a quote online.

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