075: 3 Myths about Homeowners insurance

075: 3 Myths about Homeowners insurance

Today I would like to go over 3 common mistakes I see people make when they acquire homeowner’s policy:

  1. Loss of Use Coverage – not having enough or not knowing what amount of coverage there is. If your home is severely damaged and you need to live at a hotel for some time, don’t just assume that the policy will provide you with unlimited coverage. Some policies may state a maximum per diem amount or restrict the length of time the expenses will be paid for.
  2. Flood Coverage- Almost all homeowners policies exclude flood coverage along with earthquake and other natural disasters. Flood can occur for number of reasons, burst pipes, sewer backup or hurricane. You will need to buy additional riders on your policy to get this coverage.
  3. Your personal possessions- Most homeowners insurance policies provide coverage for your personal possessions for approximately 50 percent to 70 percent of the amount of insurance you have on the structure or “dwelling” of your home. If you think you need more coverage, you will need to do an inventory and contact insurance company to request more coverage.

I found this cool program that allows you to create a list of all your possessions and keep in one place.

Check out : https://knowyourstuff.org/

Anna Sergunina

I passionately believe that in order to live a life of fulfillment and joy, we must genuinely serve each other in any way possible. I found my mission in life to serve others via financial planning. Anna regularly writes about personal finance. Her work appears on Business Insider, Nasdaq, Nerdwallet, among others. Anna is the creator of Money Flow system.

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