Five Myths about Home Insurance

Below are some common myths that people have regarding their home insurance policy with the actual facts.
Myth 1: Flood Damage is covered in regular home insurance policy.

Fact: this is not at all the case. Regular insurance policies do not cover flood coverage. There are separate flood insurance home policy that you can buy if required. Flood coverage is not specially for flood zones, it is also for flood risk zones. You can however include them if you need to.

Myth 2: Injuries caused to the owner and his or her family members are covered in Medical Payment portion.
Fact: the fact is that instead of covering you and your family, it covers any body (like friend or neighbor) that is hurt in your house and is not willing to file a case against you. Medical Payment helps you cover the bill up to thousand dollars on one insurance policy.

Myth 3: If the property is lost completely then the insurance company will pay for all the items you tell them were present in the house.

Fact: In any such event, the company asks you to make a list of the valuable items will there purchase date, price, serial no. etc. This is a little difficult when it comes to doing it by using your memory. Better option is to have a home inspection or inventory done during time of purchasing the policy. Include receipts, serial nos. photographs, bills etc. for the purpose of claim. Keep this list at some place where it is not destroyed even after the calamity.

Myth 4: On filing a home insurance claim, the cost of home insurance premium goes up for that house.
Fact: Most of the companies don’t look for the history of insurance claim. Unnecessary claims only add to negative publicity so avoid doing so. If you are making one claim over a period of time then it surely has no effect but if you making multiple claims over a small time period then there are other ways that can help you bring down the prices of your next home insurance.
Myth 5: All the valuable items are covered in case of burglary

Fact: There is a fixed amount of coverage you might receive in such cases. Generally the price is around dollar one thousand five hundred. The amount is mentioned in your agreement document. There are additional policies to cover such loses.

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