Home Insurance Myths To Bust For Your Clients

Dated: 06/01/2017

Views: 44

Home Insurance Myths to Bust for Your Clients

Image title

 (Photo source: http://www.realtor.com/advice/buy/home-insurance-myths-that-cost-you/?iid=rdc_news_hp_carousel_theLatest)


Most mortgage lenders require borrowers to purchase home insurance, but many buyers may be confused about what their policy covers. Realtor.com® recently highlighted several common myths consumers believe when it comes to home insurance.


Myth number one: All of a home's belongings are covered. "A homeowners insurance policy is not designed to cover everything," says Jeanne Salvatore, chief communications officer at the Insurance Information Institute. "Each policy clearly sates what's covered and what's not." Personal valuables, for example, aren't typically covered by a basic policy. "If you have valuable art or fine jewelry inside your house, you might need a scheduled personal property policy to cover these items," says Laurie Pellouchoud, vice president at Allstate.


Myth number two: Coverage should be based on the market value of a home. Fifty-two percent of buyers believe they should purchase insurance coverage based on their home's market value, according to a survey by Insure.com. However, with most insurance policies, rates are based on the cost to rebuild the home, not the value of the property. "In most cases, you need less coverage than the market value of your house," Salvatore says.


Myth number three: Flood coverage is included in most standard policies. Flood coverage typically is not included in standard insurance policies. Homeowners who live in an area that is prone to flooding likely will be required to purchase a separate policy to protect themselves. Separate flood insurance is available from the National Flood Insurance Program and some private insurers. Even homeowners who live outside a flood zone may be wise to consider buying the extra protection against floods, experts say.


Source: http://realtormag.realtor.org/daily-news/2017/05/23/home-insurance-myths-bust-for-your-clients?om_rid=AAEo--&om_mid=_BZJIa1B9cDxpx-&om_ntype=RMODaily


www.RaulAcuna.com

#RaulAcunaRealtor #TeamRaulAcuna #RemaxTime #RealEstate #HomeInsurance #StayInformed #Myths

Blog author image

Raul Acuna - CA BRE #01708572

Raul Acuña - Raul has been in the Real Estate Industry since 2005. Raul began working at an REO brokerage before opening his own REO company in 2010. Raul has a business degree from Cal Poly Pomona, ....

Want to Advertise on this Site?

Latest Blog Posts

4 Reasons To Sell This Spring

Some Highlights: Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available! Housing

Read More

The Number 1 Reason To Sell Now Before Spring

The #1 Reason to Sell Now Before SpringThe price of any item (including residential real estate) is determined by ‘supply and demand.’ If many people are looking to buy an item and the supply of

Read More

What Impact Will The New Tax Code Have On Home Values

What Impact Will the New Tax Code Have on Home Values?Every month, CoreLogic releases its Home Price Insights Report. In that report, they forecast where they believe residential

Read More

Thinking Of Selling Now Is The Perfect Time

Thinking of Selling? Now is the Perfect TimeIt is common knowledge that a great number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes

Read More