Homeowner's Insurance Myths
Most homeowners aren't completely aware of the limitations of homeowner's insurance. The kind of coverage you get depends on your insurance company. Make sure you carefully study your policy so that you know the extent of the coverage.
Other People Are Reading
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Flood Damage
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According to the United Services Automobile Association (USAA), 33 percent of people with homeowner's insurance have the false impression that the policy covers flood damage. Homeowners need a separate policy for flood damage.
Mold Damage
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Another common myth is that damage due to mold and termites is covered. There are actually only a few policies that provide partial coverage for mold damage.
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Sewer Backups
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Homeowner's insurance does not cover damage from sewer backups. Coverage for sewer is available from some companies as an additional option.
Earthquakes
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Damage due to earthquakes is not covered by homeowner's insurance. You need to pay an extra premium if you need protection against earthquake damage.
Replacement Cost
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For damaged items, insurance companies don't pay you a replacement amount equivalent to the value of the items. They pay you the cash value, which is calculated by subtracting the depreciation from the value, according to USAA.
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