The internet has made finding information easier than ever. However, it has also made it easier for myths to spread and for some people to believe they are truths. When you are buying home insurance, you need to know what is a myth and what is fact. Here are three common home insurance myths and the truths surrounding them.
Floods Are Covered By Home Insurance
Floods are typically not covered by home insurance. They are typically excluded from coverage. However, this does not mean you cannot protect your home from a flood. If you are worried about flooding, you will want a supplemental or separate home flood insurance policy.
Mold is Covered By Home Insurance
Mold can cost thousands of dollars to remediate. Unfortunately, mold is not always covered by home insurance. If the mold is caused by a flood in your home, it is often excluded, just like a flood. However, if the mold is caused by something covered by home insurance, such as a leaky pipe, the mold will likely be covered. So in this case, there is some truth to this myth, but not all mold is covered.
You Get What You Paid for Your Items When You File a Home Insurance Claim
The last home insurance myth is that you will get what you paid if belongings in your home are damaged or are stolen. This is not the case. You will receive fair market value for the items. This means that if you paid $500 for a television two years ago, you might only receive $200 for the television, as that is all a two-year-old television may be worth. This helps to ensure you have the money to replace the item that is missing, without benefiting from the incident.
If you have any questions about home insurance policies, or you are in the market for a new policy, contact Neff & Associates Insurance Services Inc, serving the greater Pismo Beach, CA area. We can help to answer all of your questions and provide you with great insurance coverage. Call us now to get started.