Debunking three common homeowners insurance myths

Your home is likely the most expensive thing you will ever own.

Yet, we’ve heard many stories from people who didn’t understand their insurance policy after the storm.

Or, they got sticker shock once they realized how high their deductible really was.

Here is a list of some of the most common homeowners insurance myths.

A big one for Southwest Florida is all natural disasters are covered.

They’re commonly called “acts of God” and no, you aren’t automatically covered.

In fact, there are two that will almost never be covered under a standard homeowner’s policy: floods and earthquakes.

To be protected against flood damage, like the surge during Ian, you need flood insurance.

Another myth is insurance will pay to rebuild your home if it gets destroyed.

Not so fast. As many of you have likely learned, just because you have a policy doesn’t mean you’ll get enough of a payday to cover all your costs.

Take a look at your policy.

There’s a difference between cash value and replacement cost.

The actual cash value is the current value of your home, as-is, meaning your decades-old roof isn’t worth much.

Replacement cost related to what it would cost to rebuild with new materials.

Another myth: Everything in my home is covered.

While this is mostly true, policies typically place a limit on expensive items, like jewelry and may require you to get an appraisal and add what’s known as a rider to your policy.

The bottom line is, don’t assume anything.

If you have a question, ask your agent to clarify.