Debunking Common Myths about Home Insurance
If you aren’t vigilant, it can be easy to fall prey to common myths about home insurance. Here are some of the more common misconceptions about home insurance encountered by insurance brokers over the years. It’s time to see which claims ring true and which are false:
You Should Inflate Claim Costs to Get Your Money’s Worth
If you didn’t know it already, we can say with all certainty that this is false. Inflating the cost of your claim isn’t just wrong, it is a form of insurance fraud and it is patently illegal. It is important to keep receipts and make a claim that is of appropriate value for your policy. Not only does insurance fraud cost other policy holders by contributing to overall premium increases, but it is a crime that comes with serious consequences.
You Shouldn’t Bother with Insurance as a Renter
This is false. Even if you do not own a home, it is very important to protect your belongings. Your landlord’s insurance will cover your residence, but it does not cover your apartment contents, so it’s your responsibility to get tenant insurance. Tenant insurance will help compensate you if your belongings get lost or damaged. Tenant insurance also includes liability coverage if something that originates in your apartment causes damage to another unit.
Home Insurance Doesn’t Cover Flood Damage
This is true. Most home insurance policies will cover water damage caused by a burst pipe or similar event, but do not cover damaged due to flooding or sustained leakage over time (like a leaking pipe beneath the sink). Massive neighbourhood flooding is not covered by personal insurance companies, but the government will provide relief. Small flooding from a heavy rainfall is covered, and some companies offer policies that cover flooding from freshwater rivers and lakes. Home insurance policies vary, so it’s important to read your policy in detail and find out what is and isn’t covered. Speak with your insurance broker if you would like any clarification.
You Are Covered If Someone Slips On Your Property
This is generally true. Most home insurance policies cover liability for incidents that happen on your property, including slip and fall accidents. If you want to prevent someone slipping on your property, there are many things you can do. Always shovel snow promptly on your sidewalk, walkway, driveway, and staircase. Apply salt or a deicing product to remove ice.
Don’t let common myths about home insurance steer you wrong. If you have any questions, speak with your insurance broker today to find out everything you need to know about home insurance.