Here is the truth behind some of the most common home insurance myths out there.
Oftentimes, understanding your homeowners insurance in North, Texas can be difficult. This task is further complicated by the number of misconceptions surrounding the home insurance industry. Because believing these myths can result in mistakes and coverage gaps, it’s important that you understand the truth about your coverage. Here are some common homeowners insurance misconceptions debunked.
- “Homeowners Insurance Is Not Mandatory”
While it’s true that home insurance is not a legally regulated form of coverage, this does not mean that you can get away without securing this type of insurance. This is because most mortgage lenders will require homeowners to carry home insurance in order to protect their investment. Even if you do not have a home loan, you should still secure a home insurance policy. This is because this coverage is the only thing that will protect your assets in the event of a personal liability or property damage claim.
- “Securing Home Insurance Automatically Means You Have ‘Full Coverage'”
Contrary to popular belief, not all homeowners policies are made equal. In fact, there are several different types or forms of home insurance such as:
- Basic Form (HO1)
- Broad Form (HO2)
- Special Form (HO3)
- Tenants Form (HO4)
- Comprehensive Form (HO5)
- Condominium Unit-Owners Form (HO6)
- Modified Coverage Form (HO8)
While HO3 policies offer the most coverage, even these policies will not provide total coverage for your home. Generally, homeowners need to supplement their home policies with personal umbrella insurance and other supplemental forms of insurance to secure the comprehensive coverage that they need.
- “My Premiums Go Up Every Time I File a Claim”
Many homeowners avoid filing insurance claims because they are scared that it will cause their rates to increase. However, filing a single claim will likely not result in premium increases. You only run into trouble when you start filing multiple claims within a short time frame. So, before you file a claim for every issue that comes your way, make sure you estimate the repair costs. If the cost of repairs is lower or marginally higher than your deductible, you should pay out-of-pocket and avoid filing a claim.
This is the truth behind some of the most common home insurance myths. Do you have additional questions regarding your homeowners insurance in Carrollton, Texas? If so, then contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.