As Illinois residents, we take our home insurance seriously. From making sure the property we live in is properly insured to understanding our coverage levels, it’s important that we are armed with the right information to make smart decisions. In this article, we’re going to be taking a look at some of the top home insurance myths that you may have heard before and highlighting the factual evidence that will put them to rest.
1) Homeowners insurance does not cover What?
Homeowners insurance does not cover damage to stolen property.
Homeowners’ insurance does not cover damage caused by a tornado. Homeowners’ insurance does not cover damage caused by a fire. Homeowners’ insurance does not cover damage caused by hacking or burglary.
2) You should shop around for a better rate if your home values go up
If your home values go up, you may be able to get a lower rate on your home insurance. This is because homeowners insurance typically only covers property that’s actually worth more than the policy amount. If your home values go down, the insurance company may still be willing to write you a policy, but you may have to pay a higher premium. To find out if your home value is above or below the coverage limit on your homeowner’s policy, you can contact your carrier and ask. Also, compare rates online before you buy a policy. You can find quotes from multiple carriers and get an estimate of how much the policy will cost you.
3) Insurers typically use their own guidelines to value homes
Insurers typically use their own guidelines to value homes. This means that no two listings are ever exactly alike, and you won’t receive a quote based on the value of your home as assessed by the insurance company. There are, however, a few factors that can be used in a home valuation:
The location and size of the property The age and condition of the structure The square footage The number of bedrooms and bathrooms, Generally speaking, properties located in high-demand areas or those with architectural features (such as rare woodwork or updated fixtures) will be worth more than average properties. Also important to consider is whether you have any historical value – if so, this could add to your home’s assessed value.
4) When is the best time to shop for peace of mind coverage?
There’s no strict rule as to when is the best time to shop for peace of mind coverage, but some experts say it’s never too soon and others recommend waiting until you have a specific need or concern in mind. Experts agree, though, that getting a quote from multiple providers is the best way to get the most accurate rate. “You want to make sure your rates are consistent,” says Patrick Ruddy, vice president at SquareTrade. “If you buy something today and it goes up tomorrow, you’re going to be upset.” In general, here are some tips for when is the best time to buy:
- If you have a specific concern or need in mind, such as a major home renovation or adding a child to your policy
- If you’re looking for an overall discount on your premium over the long term
- If rates are expected to go up significantly in the near future
5) How do you get flood insurance?
If you live in a flood-prone area, it’s important to get flood insurance. Here are some tips on how to get started:
- Talk to your insurance agent. Your agent can help you determine if you need flood insurance and can provide you with a quote.
- Check your state’s website. Many states have websites that list the flood zones in your area and provide information about getting flood insurance.
- Ask your friends and family if they have any recommendations for a good agent or company.
- Go online. Several websites offer free quotes for residents in flood-prone areas. These websites include Floodsmart and GetInsuredFloodSmart.
- Check with your homeowner’s association or condo board. Many developments require residents to buy flood insurance from the homeowners association or condo board before building or buying a home within the development boundaries.