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.

Image Source: Shutterstock

Recommended Posts

More From GetUpWise

About Editing Staff
At GetUpWise, we are a team of professional writers from different areas of subjects. We are conducting thorough research on each & every topic from highly reputed sources before writing any piece of article. Once research is done, we try our best efforts to provide informative piece of articles in an easy to understand manner. It is something that is extremely essential to meet our goal while reaching & offcourse building a strong online community. We do update our articles from time to time in order to provide the most latest information quickly. Thus, our articles can be used as a "way to gain smartness".

Leave a comment

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Instant Access To GetUpWise Posts

Subscribe Us

Please do verify your email address by clicking a link sent to your email.

More in Home Insurance
homeowner’s insurance myths about natural disasters.
5 Homeowner’s Insurance Myths About Natural Disasters

Natural disasters can hit anytime. These homeowner's insurance myths about natural disasters can help you to understand your policy in...