Home Insurance Myths Busted and Explained

At Oegema, Nicholson & Associates we work closely with new and existing clients to ensure they and their families are protected when the unimaginable happens. Whether that be with life insurance or home insurance, we design and tailor policies for your needs so you are neither under- or over-insured. There are many parts to an insurance policy, so we’ve decided to share some information about home insurance which some might not know about or might have only partial knowledge or understanding of. Myth: Home insurance is required by law While home insurance is not mandatory by law, most banks or mortgage holders will require it before lending the money to purchase a home. While some may see home insurance as an added expense and find comfort in a false sense of security that the worst “will never happen to them”, the truth is any loss – even something ‘as small’ as a break-in, theft of multiple possession and related damage – can cause financial hardship and additional stress which a home insurance policy with adequate coverage can protect you from having to pay out of pocket to replace what was lost all at once at an already emotionally difficult time. Myth: All home insurance policies cover the same things Policies can vary from one insurance provider to another so it is important to select a policy that suits your specific needs. Most home insurance policies will cover the dwelling, contents and personal liability of you (the policyholder), your spouse or partner, and your children. A policy can also cover dependents under the age of 18 and dependents who are students enrolled and actually attending a school, college or university and living in the household or temporarily living away from the insure principle residence. Home insurance also often includes coverage for additional living expenses which may come up in the event that you are unable to live in your home temporarily due to an insured loss in certain circumstances. Myth: Once I have a home insurance policy I never have to change it It is your responsibility to report any changes to your property which may impact your home insurance policy. Never assume anything you do to your home or purchase will be covered by an existing policy. Items which you should contact your insurance professional about before you do are: renovating your home, installing a pool or spa, setting up a home-based business such as a daycare, leasing all or a portion of your property, and purchasing jewelry or art, to name a few. In the case of jewelry and art, there are limits to how much coverage companies can provide under a home insurance policy until a higher amount or different type of insurance coverage is needed. By keeping your insurance company informed with the most up-to-date and accurate description of your home and contents you can help speed up the claims settlement process should you ever experience a loss. If you are in need of home insurance coverage for your home, have any questions about your existing policy through Oegema, Nicholson & Associates, or need to update the description of your home and its content please contact us today!