Three Myths About Homeowners Insurance

If you are considering buying a home, you are going to need homeowners insurance. But what exactly is that? And what makes a good policy? Buying a home can be a daunting process, but getting homeowners insurance doesn’t have to be. We’re going to take a look at three of the most common myths associated with homeowners insurance. Hopefully, after reading this article you’ll be able to get the policy that is perfect for you!

Always Insure Your Home Based On Market Value

Many people incorrectly believe that it’s always more affordable to insure your home based on market value. In fact, it’s often more advantageous to insure your home based on what it would cost to rebuild and replace it. By insuring your home based on that number, your fiscal security isn’t tied to the current real estate market around your home. Whether the market is up, or down you’ll always have the value of your home covered.

A Homeowners Policy Covers All Of Your Stuff

Many people also falsely believe that having a homeowners insurance policy means that all of their items are now insured. Most insurers actually place limits on the amount that can be claimed for certain possessions. For example, there are often monetary limits on jewelry, and collectible items. Take the time to read your homeowners insurance policy carefully so you understand exactly what is covered, and what is not. There’s no sense in going bankrupt because you were misinformed.

Older Homes Are Cheaper To Insure

There has always been a common misconception surrounding older homes and homeowners insurance policies. As it turns out, it’s often more expensive to insure older homes because the construction techniques used to create them can be outdated, and expensive to recreate. Insurers will take note of materials, construction techniques and more when determining what it would cost to replace your home. Don’t assume an older home means a cheaper policy!

While there are a lot of reasons to stress over buying a home, homeowners insurance should not be one of them. If you take the time to learn the basics of homeowners insurance and research your policy, you won’t have any issues. If you still have questions, consult with an insurance professional! The people at TGS.