When you’re dealing with something as important as Atlanta home insurance, it’s crucial to have the facts. There are many assumptions and myths out there about home insurance. We’re going to turn some of these home insurance myths upside-down and discover the truth.
1. MYTH: I should use my home’s market value when I insure it.
The truth: You should insure your home for its reconstruction value.
The goal is to have enough home insurance to completely rebuild your home from the ground up if it were destroyed, including clean-up and construction costs. That means insuring your home for its reconstruction value. The market value of the home, or the amount that a house would reasonably sell for, may not accurately reflect the amount you would need to rebuild the home – you could actually be overinsuring or underinsuring the home.
2. MYTH: Home insurance covers flooding.
The truth: It doesn’t. This is one of those home insurance myths that is not true.
Many homeowners only find this out after their home sustains flooding due to heavy rain. But flooding simply isn’t covered by Atlanta home insurance, even though certain types of water damage are. To protect your home against flooding you would have to have a flood insurance policy in place. You can get flood insurance from the National Flood Insurance Program (NFIP) through an agent.
3. MYTH: Home insurance covers all of my personal belongings.
The truth: Kind of. This is one of those home insurance myths that you need to talk to your agent about.
Yes, a typical home insurance policy will provide coverage for your personal belongings – electronics, furniture, clothing, and so on. But there are a few things to consider. First, you need to check and see what the limit of coverage is for your personal belongings (the maximum amount of money insurance will pay out.) You also have to check to see what losses and perils are covered under your policy.
Jewelry and valuables are something else you have to think about. Your policy may only provide limited coverage for jewelry, art, and other valuables – and this coverage might not be enough to fully protect your treasures. You might have to explore options for covering your jewelry, valuables, art, and collections.
4. MYTH: Home insurance will cover termite damage.
The truth: Termites are pestilential beasts and damage by these tiny demons is not covered by home insurance.
If termites go to town and turn your home into their own personal buffet, the damage and cost of extermination would not be covered by home insurance. Termite damage is considered to be a maintenance thing, and home insurance typically doesn’t cover maintenance-related issues.
Pro-tip: Have regular pest-control and termite inspections. Squash the bugs before they cause serious damage – or emotional distress.
5. MYTH: Home insurance will replace my belongings like new.
The truth: Well, it depends on your policy.
You can insure your personal belongings for their replacement cost value or their Actual Cash Value.
Actual cash value coverage means that your insurance company will give you the value of the belongings at the time of the loss as reimbursement. (This is the depreciated value, and it may not be enough to replace your belongings with similar models at today’s pricing.)
Replacement cost value coverage will replace your belongings with similar models, regardless of the depreciated value of your belongings at the time of the loss.
The point is you need to read your policy to see how your personal belongings are covered and to determine if you have enough insurance.
6. MYTH: If an injury occurs in my home, it’s covered.
The truth: Liability coverage takes care of your legal responsibility to your guests if they’re injured, not your family.
If a guest trips over your garden hose and breaks an arm, your liability would be covered by home insurance. (For example, their medical bills or expenses if they sue you.) But if a member of your family trips over the same hose and breaks an arm, you would have to use your health insurance.
7. MYTH: Home insurance covers my home-based business.
The truth: You need to check your home insurance policy (as with many of these home insurance myths.)
Home insurance might provide limited coverage for any business-related equipment or inventory you have, or it may not provide any coverage at all for business-related things. And even if there’s coverage for business property, it might not be enough. And you also have to consider your liability.
Anyways, the point is that you need to make sure your home-based business is properly insured. You might need to add coverage to your home insurance policy through an endorsement, get a home-based business policy, or get a business owner’s policy.
8. MYTH: Home insurance is too expensive to be worth it.
The truth: Home insurance is a financial safety net.
The house you live in is a big investment, and insurance can help you protect that investment. Consider what would happen if your home was burgled, caught fire, or got in the way of a falling tree.
As far as home insurance being overly expensive, we’re happy to bust that myth. Our agents are pros at helping people save money on home insurance and get great coverage at a great rate. We can shop your rates and get you the insurance you need to protect your home. All you have to do to get started with Atlanta home insurance quotes is fill out our online form or give us a call today. Let’s crush these home insurance myths together.