Home Insurance Myths Debunked

When it comes to home insurance, misconceptions abound. Here are five myths about home insurance that we’d like to debunk for our Wharton County residents.

Myth 1: Home Insurance Covers All Types of Damages

Fact: Most standard policies exclude damages from floods and earthquakes. Additional coverage is often required.

Myth 2: Market Value Equals Insurance Value

Fact: Insurance value is usually based on the cost of rebuilding the house, which can be different from its market value.

Myth 3: Home Insurance Is Mandatory

Fact: Unlike auto insurance, home insurance isn’t legally required in Texas. However, mortgage lenders typically require it.

Myth 4: Lower Premiums Mean Better Value

Fact: Lower premiums often come with higher deductibles and less coverage. Always read the fine print.

Myth 5: Home Business Is Automatically Covered

Fact: Standard home insurance usually doesn’t cover home-based businesses. A separate policy is often needed.

Understanding these myths can help you make informed decisions and ensure that your home is adequately covered.