Choosing a homeowners insurance policy can be one of the most complicated parts of buying a home. Not only are there eight standard homeowners insurance policy types to consider, but there is so much information to understand about these policies. And that’s before you even start analyzing the fine print on your chosen policy.
So before you choose a policy that suits your needs, it’s important to be aware of some of the most common misconceptions about home insurance. Don’t fall for these popular myths about the various types of homeowners insurance!
Flood damage is a standard component included in most homeowners insurance policies.
This may seem logical, but the fact is, home insurance rarely, if ever, includes any kind of flood damage protection or coverage. Homeowners interested in purchasing flood insurance will have to do so through a separate policy. In light of the devastating hurricanes that have destroyed so many homes in Florida and Texas, those in flood-prone areas may be better off purchasing even a small flood protection plan. Contact services that provide homeowners insurance in Tampa for more information.
Great home insurance just isn’t worth the investment.
It’s true that homeowners insurance in Tampa may not be the same price as in other areas of the country, but that doesn’t mean it isn’t a good investment. In fact, in areas particularly at risk during hurricane season, comprehensive homeowners insurance is especially important. There are a number of factors that affect the premiums of any given policy, but countless homeowners have been able to reap the rewards of homeowners insurance when they need it most.
“While home insurance costs vary by state — as well as factors like the square footage of the house, building costs in the area, and the location’s likelihood of damage from natural disasters — the average annual premium runs about $952 nationwide. But when broken down, that’s only an extra $79 that you need to add to your monthly housing budget (i.e., mortgage premium, property taxes, and interest),” explains Daniel Bortz on Realtor.com.
While those premiums may seem like an unnecessary expense right now, in the long run it may be one of the wisest investments you ever make.
Home insurance policies fully cover all injuries that occur in the home.
Here’s another common misconception, and one that’s far from a given. The reality is that while most visitors are typically covered in the event of an injury inside your home, family members and those who live in the home are typically not covered by home insurance plans. These types of injuries can be covered by separate health insurance policies, but don’t assume that your homeowners insurance will cover 100% of injuries sustained under your roof.
Ultimately, knowing the truth that hides behind these deceptive myths is essential to choosing the right homeowners insurance policy. If you have any doubts, questions, or concerns about what your policy does or does not cover, contact insurance brokers for more information.