When it comes to house insurance, you have to be sure of all the information you get. Without the proper information, you might end up getting the wrong insurance policy. Worse, you might not get proper coverage.
There are a lot of house insurance myths and misconceptions among all of us. These myths can cost you a lot of your hard-earned money. Before you get blinded by these myths, it is best if you gather all the information you can and evaluate them properly. Here are common house insurance myths you have to stay away from:
Myth Number One: The benefits you would get are roughly equal to the premiums you pay.
Truth: a lot of people feel shortchanged when they do not file claims through the years that they are paying for their insurance. The truth is, your insurance should serve as your protection from disasters and catastrophes, things that your regular budget cannot afford to handle. If you choose to get a home insurance premium that is higher, then you would be able to save around 35 percent of your premiums .
Myth Number Two: House insurance should cover disasters that would most likely happen.
Truth: In California, around 80 percent of homeowners do not have earthquake insurance. This goes to show that common disasters are not normally covered by house insurance. It would just be too expensive for an insurance company to shoulder the expenses of a lot of homeowners due to an earthquake. However, insurance companies offer add-ons or riders for homeowners who want their houses to be protected in case a common disaster damages their home.
Myth Number Three: you should only buy the minimum insurance premiums since house insurance are rip-offs.
Truth: You should not skimp on your insurance. The problem with this is that if your house gets damage, you would get only what you paid for. Instead of being able to maximize your insurance, you would end up getting close to nothing. The bigger insurance package you get, the more protection you would get.
There are other ways for you to save on house insurance costs. The key is to get to know the premiums well, and then choose what could work best for you and your house.