(12) You Are Renovating Your House & Will Be Staying In Temporary House & Storing Your Belongings In Storage Facility For Few Months Then Also You Will Be Covered
It is one of the most common home insurance myths about policy coverage. It’s not true. Generally, home insurance plan is basically designed to cover a residence that is regularly occupied by policy holder & their resident relatives for personal use only.
If you change your occupancy for few months due to renovation, your insurer may not renew your policy or reject a claim during the time of renovations.
During renovations, you will actually require builder’s risk policy to cover your property for losses. Sometimes, your insurer may provide either a limited coverage or none at all for you during renovations.
(13) You Have $1,000,000 Liability Coverage, So You Don’t Need Umbrella Policy
It is one of the most popular home insurance myths about policy coverage. Your liability coverage under your policy is sufficient to cover your claims that don’t exceed the $1,000,000 as claim amount for untoward incidents.
Some of those untoward incidents that are covered include if someone gets injured on your property, someone gets accidentally hit by you in park while playing baseball or any other sports activities, or if someone gets seriously injured in your pool area, etc.
However, your policy will not cover you if your insurance claim exceeds the $1,000,000 as claim amount for untoward incidents.
Some of the untoward incidents that are not covered include if you seriously injure someone while renting a car or boat on vacation, costs that exceeds the automobile insurance limits, etc.
An umbrella policy may be needed in such situations to provide liability coverage over & above your home insurance policy. It will be much better to review your policy with your insurance agent to make proper coverage as well as to fill the gaps.
Image Source: Shutterstock