15 Common Home Insurance Myths About Policy Coverage

Home insurance myths about policy coverage Beautiful family communicating with insurance agent

(8) Your Lost Or Damaged Items Will Be Replaced With New Items

It is one of the most popular myths or misconceptions about home insurance plan in the minds of policy holders. But, actually most of the policies or plans do not carry replacement cost coverage.

Replacement cost in insurance plan means valuing the loss or damage at the amount equivalent to replace the damaged or lost item with a new item of similar features.

For example, replacement cost coverage in homeowner insurance plan to replace the damaged or lost computer with a new one with similar features.

In absence of replacement cost coverage, your losses will be valued at current worth in their condition before calamity i.e. not valued at what you paid. Thus, it can be a valuable clause in your insurance plan.

[Read Also: 11 Biggest Surprises Covered By Homeowner’s Insurance Policy]

(9) You Should Overstate Your Losses Without Any Fear

It is one of the most circulated home insurance myths about policy coverage. Several policy holders think that it is quite fair to overstate the valuation of your losses or damages that occurred to your home.

But, actually as soon as your claims are proved to be fake then the trust in the relationship will fade away. Therefore, your insurer will start treating everything in the claim with suspicion.

Your insurers always analyze the claim with a keen eye before paying money for your claim. If anything misleading is found then it may even reject your claim completely.

Thus, you should provide best possible truth about incurred losses without any fear.

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