Myths On Insuring One's House

By Author: Marcus Stalder
Total Articles: 491
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Myth 1. The Medical Payment (MP) part of an insurance package covers the cost of injuries to the policyholder or the members of his/her family.

MP is a usual part of a standard insurance and is meant to cover your costs in case somebody else, not you or your family, receives an injury on your property. This option commonly covers up to $1,000 for each claim.

Myth 2. Any home insurance protects against flood damage.

It is incorrect to assume that a standard home insurance will cover your costs in the event of flooding. It does NOT have that protection unless clearly specified. If you want to have flood coverage you should select a separate appropriate policy.

Myth 3. Once a claim for home insurance is filed, your premium goes up.

It is true that most home insurance companies take into consideration the claim history, but there are also a variety of other factors that influence the amount of premium on a policy. One claim filed over a period of five years will most probably not affect your premium, but do think twice before filing a claim.

Myth ...
... 4. If a home is lost, the insurance company with which one holds a home insurance policy will cover the costs of everything that the policyholder claims he owned at the time the loss occurred.

In case your home is lost, your insurance company will request a list of things you owned including specific details about each of them (such as price, date of purchase, barcode number, etc.) It is very difficult if not impossible to compile such a list from memory, so the best advice is to have an already-made inventory list somewhere in a safe place to be available at the time you might need it. It is always good to include receipts, pictures, numbers and any other details that will help you prove your ownership.

Myth 5. The cost of all valuables will be covered by an insurance policy in case of burglary.

Insurance policies treat different valuables differently. Things like furs and jewelry are usually subject to limited amounts of coverage. Your policy may state that an amount of not more than $1,000 will be reimbursed for jewelry, so if your valuables amount for more you should negotiate your policy to fit your specific situation.

Myth 6. One has to be very selective in coverage options to be able to save money on home insurance.

When researching home insurance quotes you can still get a cheap deal without giving away important aspects of coverage. Insurance must be adequate to your situation. There are many ways to save on an insurance policy, fir instance you can get a discount for using a burglar and smoke alarm. To make your quote cheap you can also combine your home insurance with your car insurance.

Myth 7. A home insurance policy covers maintenance expenses, such as mold, for example.

A standard policy does NOT cover costs related to poor maintenance. You should always keep in mind that a home insurance policy gives protection against only certain perils, hail, wind, fire, and burglary. Making sure your home is well maintained is the best policy to make it safe for others. Your insurance company will refuse to cover costs related to maintenance.