Homeowners insurance protects your home from physical damage and liability. It can also help protect you against financial losses in the event of a natural disaster, such as an earthquake or hurricane. However, many homeowners are under-insured or not insured at all because they believe common myths about how much coverage they need. Here are some common myths about home insurance that you should know about before purchasing your next policy.
Homeowners Insurance Is Not Needed for Injuries
You might think that you don’t need homeowners insurance because your health insurance would cover any injuries. However, you could face financial losses because of a claim or lawsuit if a guest or passerby is injured on your property. Your health insurance covers you and your household, but homeowners policy covers others on your property.
Homeowners Insurance Is Required by Law
A homeowners policy may be required in some areas, but often is not required by law. Your mortgage lender may require insurance to obtain a mortgage. However, having a policy, such as home insurance Fredericksburg VA, can prevent significant financial loss in case of fire, windstorm, hail, theft, or vandalism.
Homeowners Insurance Covers Flooding
Your basic home policy probably does not cover flooding. Flood insurance is a specialty coverage that is an additional policy for homes and businesses. Some homes are at particular risk from floods and having an additional flood policy can protect against that specific loss. Your mortgage provider may also require you to have flood insurance if you are in a flood risk zone.
A home insurance policy is a necessary part of the financial plan for any homeowner. Yet, many homeowners don’t fully understand what their policy covers and leaves uncovered. Speak with your insurance agent to make sure there are not any gaps in your coverage.