4 Common Misconceptions Canadians Have About Home Insurance

4 home insurance misconceptions

Home insurance is a highly personalized business. Everyone’s needs are different – and so are their homes! What is true for one family won’t necessarily be true for the next. Don’t get caught up in generalizations and misinformation – read on for four common misconceptions when it comes to home insurance and the truth behind them!

Misconception #1. Your Home Insurance Policy Covers All of Your Possessions

Just because you have a home insurance policy, doesn’t necessarily mean that all items in your home are covered. Certain items, like rare collectibles, aren’t covered in a standard home insurance policy, and would need to be purchased as additional coverage. It’s important to talk to your insurance broker to make sure you know what your policy does, and does not, cover.

Misconception #2. I Don’t Need to Tell My Home Insurance Company About Major Renovations

By renovating your home, you’re adding value, which has an affect on your home insurance policy! Added value might bump up the replacement cost of your home, or even lower your premiums. On the negative side, if you fail to inform your insurance company of renovations and then need to make a claim, there’s a chance it may be declined because the home features they’re seeing are different than the ones listed in the policy.

Misconception #3. It’s Alright to Exaggerate Your Losses on a Claim

Many homeowners fear being lowballed by their insurance company, so they will overstate the damage to their home when making a claim. This is not a good idea! If your insurance broker starts to suspect that you might be falsifying or “padding” your claim, trust will be broken and every claim you make will be treated with suspicion and further investigation. If you feel like you can’t trust your insurance company to take care of you, it might be time to look for a new broker!

Misconception #4. Older Homes Are Cheaper to Insure

Just because your house is older, doesn’t necessarily mean your policy will be less! Some people think that older homes are less valuable than a new home, but that isn’t always the case. Oftentimes, older homes were built using techniques that are more expensive to replace, which can lead to a higher policy rate. When quoting for a home insurance policy, insurers will evaluate several factors when it comes to your home – including the features in your home and the materials used to build it. It doesn’t matter if your house is five or 50 years old, if it’s got hardwood flooring, it’s going to be more valuable!

Have Home Insurance Questions?

If you have questions about your home insurance policy, or are looking to get a quote, give Capital Insurance a call. Our experts will put together the right insurance package for you at the right cost.

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