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Common Misconceptions About Homeowners Insurance

Common Misconceptions About Homeowners Insurance

A home is one of the most significant purchases most people make and an investment worth protecting. Knowing what your homeowners insurance policy does and doesn't cover is crucial. Here are a few common misconceptions about homeowners insurance that could be costly.


If your home is burglarized, most policies only cover up to a certain amount, and then additional coverage is required. Also, if you do not have a well-documented home inventory, you will likely receive the minimum payout for stolen items. This is why it is essential to understand what is covered by your homeowners insurance policy and any coverage requirements.


Flood coverage typically requires an additional policy endorsement or a stand-alone flood policy. If you do not know whether you have flood coverage and live in an area vulnerable to flooding, check with your insurance agent.


Homeowners insurance does not cover termites or any other pest damage. Since termite damage happens gradually, it is not covered as a sudden and accidental loss that homeowners insurance was created to protect.

Do not assume your homeowners insurance policy will cover anything that happens to your home. Go through your policy or speak with an agent to better understand your coverage.