- 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:
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.
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.
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