It’s often tough to figure out what sort of homeowners’ insurance policy you need. Just like auto insurance, there are vast differences in the coverage options for homeowners’ insurance. Your best bet is to work with an established insurance agent who can determine what your needs are.
Myth: Flood coverage is automatically included in every policy.
Flood coverage is something you need to add to your policy—never assume that it’s automatically included. Even if you don’t think you’ll ever need flood coverage, it’s worth talking to an insurance agent about it. Water damage is among the most costly for homeowners. Plus, floods can happen anywhere, even in areas that aren’t designated as floodplains.
Myth: Fault matters when a guest is injured.
Actually, homeowners’ insurance often includes no-fault liability coverage. This means that if a guest is injured in your home, you won’t be liable for the medical expenses even if the injury was your fault. However, the insurance policy won’t cover your own injuries.
Myth: Homes should be insured based on market value.
Insurance agents advise against insuring homes based on their current market value. Instead, insure your home for the amount it would cost to rebuild and replace it. This approach protects you from unreasonably high premiums if you live in an area where real estate values are rising quickly. And if you live in an area with depressed home values, it would cost more to rebuild your home than its market value.
Myth: Home business equipment is covered.
Many people run businesses out of their own home offices. If yours requires expensive equipment, consider getting a separate insurance policy to cover it. Your homeowners’ insurance doesn’t cover business equipment or related liability issues.
State Farm Insurance - Debbie Aragon Insurance offers a range of insurance products for families in Steamboat Springs, CO. The office can connect you with homeowners’, auto, or property insurance policies, as well as annuities. You can reach their office at (970) 879-1756.