(6) You Can’t Purchase Home Without Buying Homeowner’s Insurance
It is one of the most prevalent home insurance myths about policy coverage. Most of the mortgage lenders may require you to buy home insurance policy. It is just to safeguard their own interest from unexpected losses.
But, actually you may not be required to purchase policy coverage, if you have paid the complete amount for home in cash. Sometimes, some mortgage lenders may also not require you to purchase policy depending on certain factors.
However, it will be a risky decision to purchase a home uninsured or without proper coverage. It is due to the risk of losing some or all of it in untoward incident causing huge losses to your home.
(7) Your Insurer Will Pay You For Hotel Expenses, While Your Home Is Being Repaired
It is one of the most significant home insurance myths about policy coverage. Many people believe that insurer will have to pay for hotel expenses.
These expenses should be paid while your home is being repaired or constructed after getting severely damaged under loss-of-use coverage.
But, actually loss-of-use coverage is not provided by all home insurance policies. If your policy covers loss-of-use coverage then it will be clearly mentioned in it. It will also mention certain limits of coverage such as restricting the number of days & maximum amount that can be spent on diet, etc.
You are advised to ask your insurance agent regarding this valuable coverage before signing up for the policy. It is because if you have to pay for out-of-pocket expenses for living in a hotel then it can put you at financial risk.
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