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Homeowner's Insurance Myths

Updated: Jan 6


Myth #1. "You have to come up with your deductible before you will receive a payout for a claim."


Simply put, know that you are responsible for your deductible but that most times you do not have to pay that up front. Often, it is deducted from the amount that will be paid to you in the event of a claim.



Myth #2. "Flood is automatically covered in my homeowner's policy."


In the state of Florida, flood insurance is NOT automatically covered in your homeowner’s policy. It must be written as a separate policy and regulated by FEMA. Note: unless you’re closing on a loan there is an automatic mandated 30 day wait for flood policies to take effect.



Myth #3. "Home insurance is mandatory."

Home insurance has not been made mandatory by the government but generally, your mortgage provider or lender will require that you have an active home insurance policy and that they are named on that policy. Once the home is paid off, it is up to the homeowner whether they choose to keep their homeowner's policy or not (we’d advise to keep it, though).



Myth #4. "Home insurance covers the market value of my house."

While homeowners insurance covers the rebuilding or replacement value of your house, it does not cover the market value. Typically, the rebuilding value is lower than the market value because it doesn’t include the value of the land. Note: a homeowner’s policy does NOT cover land.



Myth #5. "Home insurance covers all valuables, including high dollar stamp collections and expensive jewelry."


There is a limit on the amount of coverage for valuables. If specific possessions are worth more than that coverage amount, purchasing additional coverage is recommended for those items.




Myth #6. "The dwelling coverage amount on your homeowner's policy is based on the purchase price of your home."


The dwelling coverage should be based on the cost of replacing your home. It doesn’t include the land.




#7. "Home insurance covers needed upgrades and maintenance."


Regular wear and tear of a home is the homeowner’s responsibility and is not covered by standard homeowner’s insurance policies. Additionally, you cannot file a claim because you no longer like the color of your roof and want to replace it.






For more information, contact your local agent!


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Quinn Insurance

Pensacola

quinnins@att.net
(850) 494-2267

Spring Hill

springhillquinnins@att.net
(352) 684-2166

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