3 Common Myths About Homeowners Insurance

Posted February 29, 2024

If you own a home, you probably have homeowners insurance, but you might not think much about it or even know what’s included in the policy. However, knowing these details is important, and so is reviewing these details regularly.

At Legacy Insurance Partners, we encourage you to take a minute and review what your current homeowners insurance policy covers. We also want you to review the following myths about this type of insurance below, so you feel informed and confident if you ever need to file a claim.

1. Myth: Homeowners insurance covers all types of damage. Your homeowners insurance policy should provide coverage for a wide range of damage. However, it won’t cover everything. For example, most policies don’t cover damage caused by floods and earthquakes. You usually need separate policies for these types of damages.

2. Myth: The replacement cost is the same as your home’s value. The replacement cost is the amount you need to rebuild your home, while the market value includes land and other factors. These two amounts can differ significantly, and most homeowners insurance policies cover replacement costs, not market value.

3. Myth: Your policy covers all your personal belongings. High-value items, like jewelry, art, or collectibles, may have certain coverage limits. You may need additional coverage or a separate policy to cover personal belongings with a higher value. Do you have any questions about homeowners insurance, or would you like to review your policy? Contact us today to speak with one of our insurance professionals.