Most homeowners know what their homeowners insurance covers and when they can file a claim. Or do they? Surprisingly few homeowners actually take the time to read through their policy and review it regularly. This results in disappointment and financial hardship when they try to file a claim for something that is not covered in their policy. Take a look at these homeowners insurance myths and the truth behind them.
Common Misconceptions About Homeowners Insurance
1. Flood damage is covered by standard homeowners insurance
Flooding is a devastating occurrence. Even an inch of standing water in the home could thousands of dollars in property damage. There are plenty of places across Texas where floods occur regularly, and no home is exempt from the risk of flooding. Just because your home has not flooded yet doesn’t mean it won’t. Many homeowners are under the misconception that flood damage is covered under their home insurance. While ‘standing water’ is covered, such as a burst water pipe, water damage from a flood is not included. In order to receive flood protection in Texas, you must purchase a separate, stand-alone flood insurance policy.
2. If my home is destroyed, my insurance will cover its current market value
Let’s say your home was destroyed in a fire. If the property was worth $500,000 at the time, you might assume that’s how much the insurance company will pay you when you file a claim. However, insurance is tied to the cost to rebuild the home – not its market value. That could result in a rude awakening at a time when you are already stressed. Rebuilding costs continue to rise because of labor and raw materials on the increase. If you live in an older home, it will need to be reconstructed according to current building costs, which could end up driving expenses up even further.
Call your insurance provider to ensure that you have enough coverage to fully rebuild the property. Any premium increases will be minor, but they will make a huge difference in the event of a catastrophe.
3. All of my belongings are covered by my insurance
Again, this is a common myth of believing there is more coverage than there is. While standard insurance policies do cover your personal belongings, such as clothing, electronics, and furniture, they have a limit. If you have items that exceed your coverage limits, you will need to add on a rider to protect the rest of your belongings. For example, if you have high-value items such as jewelry, antiques, art, and musical equipment, you may need additional coverage.
Contact your insurer to ensure you have coverage that insures your items to their full value. Conduct a home inventory that determines how much coverage you need for your personal property.
There are many myths surrounding homeowners insurance, and it’s essential that you know the truth so that you purchase the right coverage and keep your beloved items and home protected. Working with a qualified insurance agent can help you secure coverage and keep it in line with your changing needs throughout the year. The right agent will be able to assess your property and belongings and tailor coverage so that you are only paying for what you need and want. Remember to keep in contact with your insurer so that your homeowners insurance meets your demands even when life changes.
When looking for
homeowners insurance that protects your property, contact the team at
Reata Insurance Group. We can help you secure reliable home coverage in Texas that suits your needs and budget.
