Property Insurance
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6 Property Insurance Myths a Homeowner Should Ignore

Purchasing a home entails spending a lot of your hard-earned money, and it’s something you’d want to protect, including the valuables in it. The best way to protect your property and valuables is by getting the homeowner’s insurance policy. With this policy, your home’s structure, liability claims put against you, and personal belongings get covered.

Though this policy protects your home and belongings from most of the mishaps that might happen, it doesn’t cover every possible peril. To get a policy that will cover most of these risks, you should look for a professional and experienced insurance policy service provider like the Jersey Mutual Insurance Society. On studying your kind of home and the valuables inside, they will offer advice on the best homeowner’s insurance policy to take and provide the service to you.

Unfortunately, instead of some homeowners seeking professional advice from experts in insurance, they listen to myths associated with property insurance and help spread the wrong information. This article will enlighten you on six myths to avoid when choosing your home coverage to help you avoid such rumors. You may need to continue reading to grasp some knowledge.

The coverage limit matches the home’s value.

The coverage limit matches the home’s value.

Most homeowners think that they should base their home’s coverage on the current value of the house. Unfortunately, this isn’t a smart move to make. Sometimes, when a loss occurs, the rebuilding cost of your home may be higher or lower than the amount you bought the house. You should consider an insurance cover that will help you rebuild your home and remain with something.

The policy covers your business.

Some homeowners run businesses in their homes and think that the homeowner’s insurance policy will also cover their business. But then, we’re afraid that’s not right. If you have a home-based business, you should take cover for it independently. As a result, you’ll have separate policies, one covering the house while the other will protect your business. According to the III, most policies protecting homes exclude business liabilities. To ensure that your home-based business is covered, consider getting a policy designed for businesses. For example, the business owner’s policy.

According to III, a business owner’s policy (BOP) gets designed to cover small to medium-sized businesses that make a revenue below $5 million and employ up to 100 employees. The policy protects any money you get to lose when your home gets damaged to the extent of you closing your business. It will also cover your property and liabilities.

Flood coverage

Many homeowners get convinced that a home insurance policy covers any damage caused by the floods. Unfortunately, it isn’t valid. Though some policies protecting homes may cover damages caused by water, those caused by a flood never get covered. The best way to protect your home from the destruction caused by floods is by taking a flood insurance policy, which comes separate from the home insurance policy. To learn the difference, seek professional advice from a reliable insurance service provider like the Jersey Mutual Insurance Society.
Flood coverage
Insurance against floods gets offered by the National Flood Insurance Program (NFIP), which is administered by FEMA (Federal Emergency Management Agency). Any reputable insurance carrier that participates in this program can also administer the flood insurance policy. Also, some insurance service providers render private flood insurance. Though most of them require you to get based in or around a flood zone, you still get allowed to purchase the policy if located elsewhere. Based on a report by FEMA, over 20% of flood claims are usually from low to average risk areas.

Coverage of family heirlooms and jewelry

Though a typical homeowner’s insurance policy caters to the theft of special valuables like jewelry, the coverage is minimal. Most policies protect valuables worth $1,000 to $2,000 only. If your jewelry or other valuable items are worth beyond your policy’s limit, you should consider raising your homeowner’s policy limit or buy a rider or an endorsement to top up your policy. Rider types include silverware, artwork, and jewelry.

Also, try playing safe by storing your valuables in a secure place like a safe. You can also pay a fee to have them kept for you by reliable security companies like in the banks. As a result, you may not have to go through the process of filing claims for your sentimental items.

Coverage of injuries suffered while at home

First, for the homeowner’s insurance policy to apply, the person injured gets determined where he or she should get covered. The homeowner’s policy only covers guests that experience bodily harm while under your roof. For you or other family members, you should file a claim via your health insurance. Your liability protection should kick in when a visitor gets injured while inside your house. But then, it will only cover the injury up to the policy’s limit.

To avoid inconveniences when injured in your home, try implementing security measures to help curb some of these injuries. Also, apply a health insurance policy for you and your loved ones.

Coverage of termite damage

Coverage of termite damage
Termite infestation can result due to poor home maintenance. Insurance providers expect homeowners to maintain their houses, and that’s why most standard homeowner’s insurance policies don’t include termite infestation. You, therefore, need to inspect your home regularly for termites. Always seek services from reliable pest control companies to help eradicate the issue before it becomes a costly problem. Termites are renowned for damaging home structures and require a lot of money to rectify the problem.


Damages and unexpected events are inevitable in our homes, and can sometimes extend to ourselves and items in our houses. It’s essential to insure your home, valuables, and self to be on the safe side. However, there’s some misconception of the policies that protect our homes and other things, as explained above. Such myths will lead you to make wrong decisions while applying for your property insurance policy. Always seek professional advice from experts like the Jersey Mutual Insurance Society when you want to take your homeowner’s insurance policy. Avoid rumors and baseless information!

6 Property Insurance Myths a Homeowner Should Ignore was last modified: by