Home insurance can be a valuable asset, but only if you are clear on what you’re covered for under your policy. Here are some commonly held misbeliefs about house insurance, to make your insurance experience as transparent as possible.
I’ve bought Home Insurance, so my home is always covered.
False. Some policies require certain actions to be done if you are leaving the home on a vacation. In some cases it will require someone to visit your home every 24 hours, or to shut off the water supply to your home.
There are also other restrictions on your home insurance, such as rules about businesses being run from the premises.
It’s always prudent to take a look at your policy wordings to see if any changes to the use of your home could affect your policy. If you’d like one of our experienced representatives to take a look at your current policy for you, we are always happy to help clarify.
All my contents are covered under my home insurance.
False. Your policy will have a specific limit for contents. Often times this amount is adequate, but it’s always a good idea to confirm that it’s enough to cover you. Keep in mind that the policy is there to cover the replacement of your old items with new items, not just the depreciated value of your belongings.
Your policy may also have specific items that are restricted further under the contents coverage. Often these are higher value or items that carry a higher risk of theft, such as jewelry or bicycles. Be sure to make sure your policy has adequate coverage for those items, otherwise talk to your insurance provider about adding extra insurance for those items.
I’m still fully covered when renovating my house.
False. You need to insurance provider to make sure you’re fully covered during the renovation process. You’ll also need to review the new renovation with your representative to make sure the value of your home is reflected on your home insurance policy.
My insurance rates will skyrocket if I have a claim.
False. Most companies provide a discount for being claims free. However, there are some companies that offer a claims forgiveness policy. Those policies will prevent your rates from increasing due to a claim. These policies are mostly offered to clients with good insurance history.
The Home Insurance People are insurance experts. We are always happy to answer any questions that you may have about house insurance. Feel free to e-mail us your questions or call us Monday to Saturday from 9-5 at 1-866-544-4224.