More Home Insurance Myths, Debunked

Debunking home insurance policy myths is sort of like playing with a double-edged sword. On the one hand, the debunker in question places him or herself into the position of being able to free others, as it were, from long held misconceptions that could otherwise develop into costly lessons learned. On the other hand, it can be a lot like being the deliverer of bad news. If you think you know all there is to know about homeowners insurance, read on. There are a couple of things you should probably know.
 

• Myth: Shopping around is a waste of time. This is one of those declarations that will arrive like blessed relief for those who feel it’s their duty to seek tirelessly for the lowest insurance rate in town. But for those whose lack of patience when dealing with bureaucracies always leads them to take the path of least resistance, the information will come as a nagging reminder that perhaps they didn’t do all they could have done to ensure a home insurance discount substantial enough to help put the kids through college. Yes, all home insurance companies operate under the same rules and regulations and for the most part, you’re not going to find a home insurance policy that differs dramatically in price from competitors. But it’s not overnight jackpot discoveries that build real wealth. It’s incremental savings over long periods of time that can really make a difference in your savings account. If you think you hit a home run on your first swing, think again. Get quotes and comparisons from at least three other home insurers before calling it good.
   
• Myth: Your home insurance policy will pay for your medical bills. The truth behind this myth is a bit discomforting. We insure out homes against damage because we don’t want to bankrupt ourselves trying to put a roof over our heads in the event of the unforeseeable and the often times inevitable. But deep at heart, everyone’s true concern is for their personal safety and that of their family members. To think that your homeowners insurance policy won’t pay your medical bills if your home’s roof collapses on you is unthinkable—especially since there’s a “medical payments” allowance on your policy. But here’s the bottom line: the medical payments allowance of your insurance policy (also referred to as “medpay”) is to pay the medical expenses of anyone injured while visiting your property. This is essentially put in place to keep people from suing one another for damages unnecessarily, and doesn’t cover you, your family, or anyone living in your home. So what happens if your home is hit hard by a storm that results in injury to the very people whose well-being you care about the most? In short, those injuries will be covered by your personal medical insurance and are dealt with separately from your homeowners insurance.

Now that you’ve had a chance to peel back the layers and see the truth behind two of the biggest misconceptions in homeowners insurance, you can take action to ensure that you’re truly making the most of the home insurance discounts that are available.