You think home insurance is imperative for you if you own a house. You believe you need home insurance for your existing house or any new one you purchase. But are you sure you know the complete truth?
Several myths are floating around. You probably know a few. Some could be negative, and there are positive ones too.
In this article, we are busting the top five common home insurance myths in Canada. It will help you know what is right and wrong for you before investing in house property.
Let us begin.
Myth 1- You should always have a house insurance
Until now, you might have believed that a house insurance policy is a must. You might think it is a compulsion to have a home insurance policy. It, however, is a big myth.
A car insurance policy might be imperative, but a house insurance policy is not a mandate by the government.
However, differing from home insurance, a rented or mortgaged property might require you to have a renter’s or tenant’s insurance policy most times.
Myth 2- All my valuables are always covered
The other common myth is the home insurance policy will cover all your valuables during any ordeal. A home insurance policy covers all your main valuables, but it does not cover all of them.
To cover all your valuables, you need to add extra coverage for them. Only then can they cover your house against any theft, damage, etc.
Myth 3- Home insurance protects against floods too
Next, you might believe home insurance covers you against any flood damages as well. Again, this is a myth. Your home insurance policy can cover you against flood damage only if you have chosen the option in the policy.
Small-scale damage, for example, the bursting of water pipes might get included in your policy. However, flood damage coverage needs to be added separately to your policy.
Myth 4- Home insurance covers earthquakes too
Like the other myths, home insurance covers earthquake damages only if you add it to your home insurance. Believing that a home insurance policy automatically covers earthquake damages is a myth.
You need to add an earthquake render coverage to your home insurance policy, and then will it cover any earthquake damage.
Myth 5 – Home insurance cover the damage by the act of god
You might believe that it does not cover any natural disaster or act of God under a home insurance policy. It is a myth. Many natural disasters such as lightning, fire are covered. There are many more in the options too. You can opt for them, even earthquakes, floods, or other natural calamities.
To sum up, many myths misguide you when investing in a home insurance policy. It is not an exhaustive list. We have only listed the top five big myths aiming to clear them from our reader’s minds.