6 Myths About Homeowners Insurance (and the Truth Behind Them)

There are several long-lasting myths about homeowner’s insurance coverage that’ve been perpetuated throughout the years that can seriously impact a homeowner’s ability to recover from a loss.  If you are seeking to purchase a new policy or are in the process of reviewing an existing policy, do your research with confidence as we set the record straight on the following 6 myths.

Myth #1: My homeowner’s insurance policy will cover all natural disasters. 

Hurricanes, floods, earthquakes and landslides are considered high-risk events and are typically NOT covered

by a standard homeowner’s insurance policy. They are unpredictable and unpreventable and usually cause

widespread damage. The cost of insuring them is very high. Separate policies or endorsements should be

purchased to provide coverage from these types of events and will vary based on location of the home.

Myth #2: All of my personal property is covered under my homeowner’s policy. 

Unfortunately, not all personal property is covered under a standard policy. Limits or exclusions may exist for

certain types of personal property such as expensive artwork, collectibles, jewelry, etc. You may need to

consider purchasing additional coverage or endorsements such as a personal property floater or a rider form

for specific pieces of personal property. Check your policy for such limits or exclusions.

Myth #3: Our house is protected from all pests. 

Rodents and termites are the two most popular pest infestations that homeowners believe are covered under

their homeowner’s policy, and it’s simply not true. The damages incurred by these pesky creatures is

considered to be preventable and therefore not considered a covered loss. Termite policies, etc. are

separate plans that may be purchased to prevent losses from infestation.

Myth #4: My home-based business is covered by my homeowner’s policy. 

The ability to work from home has come to the forefront in the past two years, and many folks believe this to be

true. Conducting business from home with little to no foot traffic may have certain coverages under your

existing policy. However, it will not cover items such as data loss or damage/theft of business equipment over

a certain amount (set by your carrier). There is also no coverage for loss of income if your home is damaged to

the extent that you cannot conduct business, and no coverage if employees are injured in your home.

Myth #5: All injuries occurring in my home are covered. 

This is not the case. While many homeowner’s insurance policies cover injuries that occur on your property or

in your home, there are some exclusions that may apply. Specifically, those caused by intentional actions or

occurring during criminal activity are never covered by insurance. It’s a good idea to check with your insurance

provider to see what is included in your policy.

Myth #6: Normal wear and tear of my home will be covered by my policy. 

This statement is a super-“mythy” myth. When purchasing a homeowner’s policy, you enter into an agreement

with the carrier that basically indicates your promise to keep your home in good repair. For example, if you

never cleaned your gutters, and standing water causes wood rot or structural damage, that damage would

not be covered. Normal wear and tear is defined as the gradual deterioration of a property due to regular use

and the aging process. Insurable events are those such as a fire or a theft. Homeowner’s insurance is geared

to provide coverage for unexpected, sudden events.

Don’t fall victim to the myths surrounding the purchase of homeowner’s insurance. At Nsure you can compare 

coverage and premiums from over 50 of the best insurance carriers in the nation. Make sure with Nsure!