Few Important Home Insurance Myths You Should Know

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Few Important Home Insurance Myths You Should Know
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• Home insurance is one of the most common
  insurance policies and one of the least
  understood too. Many homeowners live with a
  misconception that their policy will cover them
  practically in any damage sustained to the house
  or the belongings. However, the reality is that
  home insurance policies contain many restrictions
  on coverage that you must know to prepare you for
  sudden unforeseen situations.

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The four common home insurance misconceptions
include
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Sewer Backups, Earthquakes, Water Damage Covered
By Basic Policies

• Many proprietors logically assume that damage
  caused by the flood or earthquake are covered by
  the home insurance policy, whereas the
  unfortunate truth in that it is not the case for
  every policy. A basic home insurance policy
  covers for the situations when the house gets
  damaged due to flood or storm surge or even when
  the roof leak due to the improper waterproofing
  construction.

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• One common loophole in that when you house is
  damaged by the wind or debris that allows water
  to get in the house, you may be covered for the
  resulting water damage. Another caution for
  ineligibility of coverage is long-term damage as
  a result of neglected maintenance. Mold damage is
  often not covered by your insurer. Sewer backup
  is also not included in your basic policy, but
  specific policy extension would cover you for
  this damage.

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My Insurance Claim Will Pay For Mechanical Repairs

• People are often surprised to know that a
  standard home insurance never pays for Mechanical
  repairs. Since, most non-structural mechanical
  repairs are considered maintenance items and
  arent covered. So, if your water heater tank
  break- which is a common occurrence, your home
  insurance policy will usually cover for you water
  damage repair, but wont pay to replace your
  water heater itself.

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Upgrades in the Policy are Point-Less

• False! Any extensive upgrade in the policy will
  give you high coverage and can lower your
  premiums as well. So if you are adding a living
  space in your home, you should inform your
  insurer about the alterations to make in your
  home to get good benefits in future. Also, try
  not to buy a less premium policy on behalf of
  fake information about your home as it would lead
  to policy cancellation and rejection of claim.

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Jewelry is not Covered under the Policy

• Generally people live with a misconception that
  home insurance policy does not cover for the loss
  of jewelry. However, the fact is that home
  insurance covers for the theft or loss of the
  precious jewelry up to a certain limit that could
  end up vastly devaluing such items.

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• To know what your home insurance actually covers
  for, you should read the policy carefully. Look
  for factors that may reject your claim and decide
  how you will cover those risks. In some cases,
  your general insurance company will have separate
  add-ons that they can attach to your policy or
  you can get specialized insurance from another
  company. To easily manage those risks that cannot
  be insured, prepare yourself financially In
  advance.