15 myths about home insurance that you should be aware of, so don’t fall for them!

You should be aware of 15 myths about home insurance, so don’t fall for them!

There is a lot to think about when you buy the right home insurance for yourself. Find out what is covered and what isn’t covered before purchasing insurance. If you don’t read it right, you won’t know what the insurance company gives you. Here, we’ll talk about the top 15 myths that people believe about home insurance. They think the policy isn’t right, and they don’t understand it. So let’s start dispelling some of the myths we have about the home insurance plan.

If you believe these 15 myths about home insurance, you should think twice about getting it!

#1. MYTH: You need to have home insurance to protect your home.

The reality is: You don’t have to buy home insurance. It isn’t required like auto insurance, but it is still a good idea. Most of the time, a lender or a bank will ask if you have home insurance or not. Afterward, they will ask you to write down the policy you own. If you rent a house, your landlord might ask if you have renter’s insurance. If you have these kinds of insurance, it is good for you to have them. However, there’s no reason not to get a loan or rent an apartment. The law does not require them.

#2. MYTH: My house is always covered even if I’m on tour.

This isn’t true. If you go on a trip without taking any safety precautions, the insurance company may not pay for damage to your home. You should shut off the water to your house. It would be best if you also made sure that the temperature in the room stays the same. If you don’t take these steps, the insurance company can get rid of your insurance plan.

Also Read: When Can You Claim for Water Damage on Your Home Insurance?

Ask your insurance company how often someone should check on your home to ensure everything is okay. Most of the time, once a week should be enough. But it varies from company to company.

#3. MYTH: I also have my valuables covered.

Reality: Most home insurance policies cover your home and most valuables up to a certain amount. But it doesn’t cover them all. You have to buy more insurance to cover that, so you need to do that. If you have valuable jewels at home, you should get extra insurance because your home insurance won’t cover them, so you’ll need to get something else. Most home insurance only pays for valuables up to a limit of $1500 or $2000.

#4. MYTH: My home insurance policy will also cover me if there is a leak in the pipes.

The reality is: When the sewer system can’t deal with the amount of water, water comes out of the toilet and drains. You make your house a mess. Most of the insurance companies let you add this protection as an extra. If you have the standard plan, it doesn’t have it. Only a few companies include it in a traditional insurance plan.

#5. MYTH: Insurance protects you from flooding.

Reality: Most home insurance policies protect you from accidental water leaks from burst pipes. Even if you have a flood, this won’t help you. Many insurance companies won’t cover you if water comes into your house because of a river surge or a storm.

Also, check out mobile home insurance: do you need it, or is it a waste of money?

In this case, it all comes down to who you have chosen for your insurance. You have to buy a separate policy for it most of the time.

#6: People think that home insurance only covers the house.

Reality: Home insurance policies don’t just cover your house. They also protect your things inside it, like your furniture and clothes. If you are rebuilding your house, the policy will pay for your rent and any personal debts that you may have to deal with.

#7. MYTH: Home insurance gives you the value of your home.

Home insurance doesn’t cover the value of the house. Home insurance doesn’t cover the value of the land. So it gives you a lower value than the market would pay for the same thing. Insurance does not make money. They wouldn’t pay you more money. Before the accident, you were where you were. There is also a depreciation factor that it considers and gives you the absolute value of the house.

#8. MYTH: It helps you in the event of a big earthquake.

You don’t get earthquake coverage with a standard home insurance policy. This is the truth. If you want to be covered in the event of an earthquake, you need to add an “earthquake rider” to your policy.

#9. MYTH: People think that old and cheaper house insurance is affordable.

This is not true. The older the house, the more it costs to insure it as there is a chance of damage. Insurance companies usually give new homes a discount because the chances of them getting damaged are meager in this kind of case, so they do.

#10. MYTH: Insurance covers damage caused by termites and other bugs.

Insurance companies don’t cover damage to your house caused by termites and other bugs. Keep in touch with the pest control service you want to work with. Keep an eye on your home now and then to see if there are any signs of damage caused by bugs.

#11. MYTH: Home insurance covers my condo, but I don’t have to pay for it.

Reality: Most home insurance policies cover the structure of the building. It doesn’t cover your apartment. Because this isn’t true:

#12. MYTH: The landlord’s insurance will cover the renter, right? Wrong!

If you rent a house, you don’t own the house, so the landlord’s insurance will not cover you if you get hurt. If you want to be safe, you need to buy renter’s insurance.

#13. MYTH: Home insurance doesn’t cover acts of God.

It’s true: They are not left out of the policy. Almost all insurance policies cover things like lightning, wildfire, and other things. However, if you want to be covered in an earthquake, you have to buy a rider policy.

#14. MYTH: If I get hurt at home, my home insurance will pay for it.

This is not true! There is no way that your home insurance policy will pay for your injuries. It will cover you if someone visiting your house gets hurt by accident. It should not be an accident.

#15. MYTH: Home insurance doesn’t cover if your dog bites you. This is a myth.

This isn’t true. You can get your home insurance to pay for the third party’s health care costs if you answer the question correctly.


Some people think that home insurance isn’t worth it. These are the top 15. After reading this, we hope that you understand the myths. There are also other myths. We’ve only talked about the most important ones.

You can also read this: Homeowners insurance does not cover these six things.

Before choosing a home insurance plan, talk to your agent about these things. Do they cover these things? You can also ask your financial advisor about this question, as well. Insurance companies will give you a price. Choose the right kind of insurance plan that fits your needs and wants. If you have any doubts, write them down in the comment box below.