Insurance has a lot of mumbo jumbo jargon in your policies and coverages. Your homeowners policy was not created to be easily understood. The fine print is not meant to be read by anyone other then professionals. There are man myths that come from interpretations of these documents. Home insurance isn’t legally required like liability insurance for your car, but mortgage lenders will generally require you to get homeowners insurance in order to protect their investment. Here are 4 myths for homeowners that have insurance.
Myth #1: Standard policies covers floods. Most standard policies do not cover water damage that is caused by flood. Flood insurance is required for majority of flood zones. The National Flood Insurance Plan mandates people located in the flood zone to have flood insurance. However, just because you’re not in a flood zone doesn’t mean it couldn’t happen to you. Look at your area’s flood plain map. You might be close enough that it is worth purchasing a flood insurance policy. Speak to your insurance agent and figure out the best plan so when a flood does happen, you know what to do. Water damage from flood is incredibly costly and it may have to be an out of pocket expense without the proper coverage.
Myth #2: If you experience a loss, your insurance company will reimburse you for whatever you tell them you owned at the time. Having some type of list of what you own is a good idea. Insurance companies are going to want some kind of record of what you owned. In the moment or some time after the accident happened, trying to doing it from memory can be very hard. Keep a list of all of your valuables in your home, including what you paid for them (receipts), serial numbers, photos, date of purchase etc. You are going to need to prove ownership, especially for expensive items that you want to be reimbursed for. Always keep the inventory list somewhere where it cannot destroyed.
Myth #3- If you file a claim, your premiums automatically go up. This myth is a bit tricky because your premiums will not go up necessarily . Raising the price of your premium will depend on many factors, not just making a claim. One claim may not make an impact, multiple claims will certainly make a difference. Advise with a professional before filing a claim. If it’s close to the deductible, you may be better paying out of pocket. A restoration professional can consult with you on the estimated cost of repairs. When filing a claim, there is a procedure that has to be gone through that can prevent work or remodeling from being started.
Myth #4-All of your valuables, including jewelry, guns, etc. will be covered in the event of burglary. Most policies will have limits on what coverage you have for valuables above a certain amount. For example, most companies put a cap of $1,500 on total jewelry lost during a burglary. You may want to consider an additional endorsement on specific valuables which can offer more coverage.
Let your friends at Blue River Restoration be the ones to help you through those accidents and situations when insurance is needed.