Your home is your most valuable asset and like any homeowner, it makes sense that you’d do anything to protect it from external or internal damages. But sometimes, those damages are unavoidable, so you need to take measures to protect your pocketbook as well in the event of an unforeseen or uncontrollable disaster. Homeowners insurance in Mansfield, Texas is a great place to start, but it’s not enough just to have it. You need to know exactly what kind of coverage is included in your policy and it’s better to find out sooner rather than in the midst of a catastrophic event. A lot of people are under the misconception that general homeowners insurance covers every perceivable type of damage, but that’s simply not the case.
With that in mind, here are the top eight homeowners insurance myths you should know about so that you don’t fall victim to them.
Myth #1: Homeowners Insurance Covers All Damages
Texas state law doesn’t mandate that you must have homeowners insurance, but it’s still highly recommended that you have some sort of policy in place to protect you and your family in the event of a disaster. Even if you only get the most basic coverage, you would still be covered if a major storm or fire destroyed your home.
However, there are certain types of disasters like floods and external water intrusions that aren’t automatically covered under your homeowners insurance policy. You need to purchase separate coverage for these types of damages.
Myth #2: Your Coverage Limit Automatically Matches the Exact Value of Your Home
Even if this were the case—which it most certainly isn’t—it wouldn’t be doing you any favors in the long run because the market value of your home depends on a number of factors including any renovations you’ve done and the current economic climate. It makes more sense if your insurance premiums cover the cost of rebuilding your home plus a little extra in the event that a natural disaster strikes. That way, you won’t be completely destitute and you can actually afford to reconstruct your home or repair extensive damages and still have a little bit of money left over.
Myth #3: Mechanical Repairs Will Be Covered by Your Insurance Company
When you’re shopping around for home insurance in Mansfield, TX, it’s extremely important that you do your homework and ask all the right questions that pertain directly to your specific needs. First and foremost, you’re going to want to find out exactly what type of coverage is standard in your region based on local statistics and climate conditions. A reputable and experienced Farmers Insurance agent in Mansfield, Texas can help you obtain the information you need to make an informed decision.
Certain mechanical malfunctions in your home like your water heater breaking down typically aren’t covered by a basic insurance policy. However, if your water heater is leaking or suddenly ruptures, chances are that your insurance company will cover the water damage your home endures; they just won’t pay to replace or repair your water heater.
Myth #4: All Injuries That Happen on Your Property Are Covered
When it comes to covering injuries that occur on your property, liability insurance only goes so far. Let’s take a look at the following scenarios:
If, for example, you have two kids who enjoy rough-housing and horsing around and one of them becomes injured during one of their many escapades, you wouldn’t be entitled to file an insurance claim under your homeowners policy. Instead, you’d have to file a medical insurance claim in the event that the injured child requires medical treatment.
However, if someone visiting or passing by your home happens to suffer an injury on your property due to a slip-and-fall accident because you neglected to shovel your driveway, then you’d be liable to cover the damages through your liability insurance. Keep in mind that your liability insurance only protects you up to the limit that you set, so if a lawsuit against you exceeds that amount, you’re liable to pay the difference.
Myth #5: Flood Damage Is Automatically Covered
Certain natural disasters like fires, storm damage, or lightning are automatically covered under most standard insurance policies in Texas. Floods, which can occur for a number of reasons, usually aren’t covered. Although, insurance policies may vary from one provider to another, so it’s important to ask your policy adjuster for clarification on what your plan covers if you’re not entirely sure. According to the National Flood Insurance Program (NFIP), if your home is in a region that’s prone to flooding, then you may be required to purchase separate flood insurance.
Myth #6: Your Home Insurance Extends to Your Home-Based Business
Understandably, a lot of people who work from home tend to think that their home insurance will also cover their business ventures, but that’s simply not the case. If you own a home-based business, then you might want to consider purchasing a comprehensive business insurance policy that includes liability and property coverage instead. Under a comprehensive business owner’s policy, the structure of your home—which also serves as your office—will be covered against physical damages like vandalism, fires, and so forth.
Myth #7: Your Insurance Company Will Cover Hotel Expenses During Repairs
Unless your home insurance coverage includes a loss-of-use provision or clause, then you’re most likely going to have to pay out-of-pocket for additional accommodations during home repairs. It might be worthwhile for you to add this into your policy, though, because if you’re put out of your home due to flooding or a fire, it could be a while before your home is habitable again.
Myth #8: Mortgage Insurance Covers Your Home in the Event of a Fire
Mortgage insurance is required when you purchase a new home. However, it’s not meant to protect you as the homeowner. All that mortgage insurance does is protect the lender in the event that you should ever default on your payments. Mortgage insurance simply guarantees that the lender is still paid, but it has nothing to do with any structural damages to the property.
Do you have questions about homeowner’s insurance in Mansfield, Texas?
Farmers Insurance – Crystal Schuder Agency can help you find the right homeowners insurance for your specific needs. We’ll take the time to review your existing policy and help you make any necessary adjustments at an affordable rate for you and your family. Contact us today to set up a consultation.
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