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  • Chen & Associates

Common Homeowners Myths Busted

How much do you know about homeowner's insurance coverage?

As a homeowner, having insurance is a must. While this is standard protocol, there are elements in every policy that may be overlooked. Knowing what your insurance policy covers is important to avoid being caught off-guard when you need it. Here are a few myths you should be aware of:

Replacement Cost

  • While replacement cost should cover the costs of replacing your home and its contents covered under your general policy

  • you may find that some of your items may not fall within the guidelines. Knowing how items are valued is key.

Earthquake and Floods coverage

  • Most insurance companies exclude earthquakes and flooding from the standard policy. Flood insurance or earthquake insurance is not automatic and is a separate policy.

  • These are special policies that are underwritten by a private insurer and backed by the government to fully protect your home and belongings against any damage due to named perils.

Home-Based Business

  • If you are operating a business in your home, it’s best to have business insurance. Standard homeowner policies do not typically cover any business-related costs.

  • This means that if you have an inventory of product stolen or a client becomes injured at your residence, you may not be covered.


Do any of these scenarios apply to you? Of course, you are always free to make policy changes to adjust your coverage to suit your needs.


The content here is provided as general information only and should not be construed as a recommendation to buy or sell any security or financial instrument or to participate in any particular trading or investment strategy. All material presented herein is believed to be reliable but we make no representation as to or accepts any responsibility or liability for, the accuracy or completeness of the information contained herein or any decision made or action taken by you or any third party in reliance upon the data. The investments discussed here may be unsuitable for some investors depending on their specific investment objectives and financial position. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

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