Don’t let these myths stop you from making informed decisions about your homeowners insurance.
Purchasing a home is one of the largest investments you will make in your lifetime. Naturally, you want to protect your investment with the right home insurance in Jackson Heights, New York. Unfortunately, most first-time homeowners are inexperienced when it comes to the world of insurance and are not sure what to do with their coverage. To ensure that you don’t make potentially costly coverage mistakes, here are three of the most common home insurance myths you should disregard.
- Myth 1: I need coverage that matches my home’s market value.
Many homeowners believe that they should secure enough coverage to match their home’s current market value. However, this is not recommended because your home’s purchase price doesn’t always accurately represent what it would cost to rebuild your home if it was completely destroyed. Rather than basing your coverage limits on your home’s current value, you should always base your limits on what it will cost to rebuild your home, plus a little extra for a cushion.
- Myth 2: My home policy also covers my home business.
If you run a home-based business, then you may assume that your homeowners insurance will automatically cover your company’s supplies, equipment, and liability. However, most home policies specifically exclude coverage for business liabilities and, in some cases, your business’s property. To ensure that your home business has the protection it needs, you should secure a separate business insurance policy such as a BOP.
- Myth 3: Home insurance includes flood coverage.
While your homeowners insurance will cover water damage under many different circumstances, floods are not covered events. The only way to secure coverage for flood damages is by securing a specialty flood policy from the National Flood Insurance Program (NFIP) or from some private insurers. If your home is located in a flood zone, then your mortgage lender likely requires you to carry flood insurance. However, all homeowners should consider securing this essential form of protection, even if it is not mandatory for them.
These are some of the common home insurance myths that you should ignore. Do you need more help with your home insurance in Jackson Heights, New York? If so, then contact the experts at 01 Insurance. We are ready to assist you with all your home coverage needs today.