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Homeowners Insurance can get a little tricky to understand. We seek to provide the very best information, and some of that come with understanding common Homeowners Insurance misconceptions.

“More than two-thirds of consumers surveyed said they’d rather pay a higher premium than be told that a loss isn’t covered,”


When you think of purchasing homeowners’ coverage, you may need to think of the old saying, “You get what you pay for.” 

Sure, saving a few dollars on homeowners’ insurance sounds like a grand plan, right?!?!  Maybe not if you understand what you’re getting.

Let’s take a look at some of the common homeowners’ misconceptions:

— 30% percent of homeowners think their insurance coverage is based on the current market value of their home. In reality, the available coverage limit for homeowners insurance is based on the cost to rebuild the home.

— 71% of homeowners’ think insurance pays for the full cost to rebuild their property in the event of a major loss, such as a fire or other natural disaster. Actually, almost all insurance companies “cap” the amount paid to rebuild the home after a total loss, unless additional coverage is purchased. The coverage is also subject to a deductible, and certain causes of loss, such as water damage caused by the natural disasters of flooding, are excluded completely.

— 73% of homeowners’ think insurance will pay the full cost to replace personal items in the event of a loss.  Depreciation, however, is usually factored in, unless optional replacement coverage is selected.  The coverage is typically always subject to a deductible as well.