A Guide on Misconceptions About Homeowners Insurance

Introduction:

Covering the most precious place of yours and your loved ones- your home - with homeowners insurance in Harlingen is one of the most responsible decisions you can make. It gives a sense of safety and protection, in case something very uncertain that is beyond your control happens. However, it has been a practice that people actually do not like seeing other people good fortune or awareness regarding some proactive measure that a person takes for his and his family's wellness.

The same goes with insurance policies and people often have several misconceptions about it that they hold on to, without verifying the facts. Let us take a look at some of those myths:

Considering Home Inventory As An Unnecessary Task:

When you are paying off the monthly premiums from your hard earned money all you cannot let go of is that no single item of your house could potentially be subject to damage without reimbursement. People are mistakenly believing that they are in no need to create a home inventory as you have already purchased an  insurance policy. But, this is not the reality. If you have not created an inventory of all your belongings in your home and its value, you might be at a disadvantage during the claims process. 

Personal Belongings are Covered under House Insurance, even if they aren’t in the House:

This is one of the major misconceptions ruining the minds of the people that states that even if the items are  not in the house, they will be covered. This is not always the case. The belongings are actually only covered when they are on your property – so if you take them out of the house for any reason, you might not be able to get reimbursement for them in the event that something happens to them. Do keep this in mind that only those personal belongings whose note has been taken while insuring the house will be liable while filing the claim and not the one  which was not mentioned.

If my home is damaged by my neighbor’s property: Then Their Insurance Covers the Cost:

This is a myth that you can’t afford  to believe, as it’s simply not true in the majority of cases. If your neighbor’s tree falls on your house and damages your property, their insurance will only cover the damage to their own property – not yours. In order to avoid being left high and dry in such a scenario, you’ll want to make sure that you have proper homeowners insurance coverage in place. You need to ensure while signing the dotted lines of your  policy that you are sufficiently covered in cases where damage is done to your property by a third party, or by any other natural  disaster.

Studying Policies is a Waste Of Time: All homeowners insurance policies are essentially the same

Staying in a belief that states that  all policies are the same can result in having to pay from your pocket later. Different companies tailor their policies differently – while one company may cover damage caused by flooding, another may exclude it from their definition of “covered incidents”. It pays to do your homework when shopping for a homeowners insurance policy, so that you can be sure you’re getting the coverage you need at a price you can afford.

Homeowners insurance is Mandatory:

There is a big NO for this. No state mandates you  to have homeowners insurance. It is totally for your convenience that you get one so that you get the top benefits of homeowners insurance at the time of mishap. Homeowners insurance is however, often required by mortgage lenders. If you have a mortgage on your home, chances are your lender will require you to have some form of homeowners insurance in place before they will provide funding. Even if it’s not required by law or by your mortgage lender, though, it’s still a good idea to have adequate coverage – as you never know when an incident may occur that 

could result in damage to your home.

Read a complete guide on scheduled property coverage.

Key Takeaways:

Transparency and clarity make the vision more realistic for customers of homeowners insurance companies when it comes to purchasing an insurance policy. The importance of a homeowners insurance policy is vast and it should not be underestimated. And hence it is so essential to just wipe the baseless myths that resist the policy's pragmatic approach.

Adopting the homeowners insurance is a great way to be financially secure and have a safety net for your family in case of any unforeseen circumstances. So, without any delay get in touch with an insurance agent, opt for the best of all available by comparing different homeowners insurance quotes, and get started with the process of insuring your house.