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5 Truths and Myths about Home Insurance


Home insurance is an essential aspect of protecting your investment and personal belongings. However, there are many misconceptions and misunderstandings about home insurance that can cause confusion when choosing coverage. In this article, we will debunk common myths and uncover the truths of home insurance.

Truths and Myths of Home Insurance:

Myth: Home insurance only covers damages caused by natural disasters.

Truth: Home insurance covers a variety of damages to your home, including damages caused by theft, fire and even water damage. It also provides liability coverage if someone is injured on your property.

Myth: Home insurance covers all personal belongings in your home.

Truth: While home insurance does provide coverage for personal belongings, there are limits on certain items such as jewelry, art and other high-value items. Consider purchasing additional coverage, such as a rider/floater, to ensure adequate coverage for these items.

Myth: Home insurance premiums increase if you file a claim.

Truth: While it may seem logical that filing a claim would increase your premiums, this is not always the case. Some insurance companies offer forgiveness for first-time claims and others only increase premiums if the claim is severe or frequent.

Myth: Home insurance covers damages caused by a home-based business.

Truth: Most home insurance policies do not cover damages caused by a home-based business. Consider purchasing a separate business insurance policy or adding a rider/floater to your home insurance policy for additional coverage.

Myth: Home insurance is unnecessary if you live in a safe neighborhood.

Truth: While living in a safe neighborhood can lower your risk of damages caused by theft and other crimes, it does not eliminate the need for home insurance. Natural disasters such as earthquakes and floods can occur regardless of the neighborhood’s safety level.


Understanding the truths and myths of home insurance is essential for making informed decisions when choosing coverage. By knowing the facts, you can ensure that your home and personal belongings are adequately protected and you can avoid unnecessary costs and risks. Be sure to review your policy regularly and consult with your insurance broker to ensure that your coverage meets your needs.

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