Top Insurance Myths Debunked

We've all heard at one point or another varying claims related to home insurance. But do you know if they're really true? Today, we've done your homework for you and have debunked some common home insurance myths. Let's see if you've fallen for any of these!

 

MYTH #1 - You must have home insurance

Unlike auto insurance, the government doesn't actually mandate that you get home insurance. However, many banks and mortgage lenders will require you to get home insurance if you are looking to obtain a mortgage. If you've paid off your home, you have the option to get home insurance, but if you are still paying off your home, you will be required to get home insurance.

 

MYTH #2 - Your house is covered while you're on vacation

If you don't take the necessary precautions when going on vacation, you might be up a river without a paddle - home insurance wise. If you plan on going on vacation during the “usual heating season” then you will likely need to: Shut off the water supply in your home and empty all the pipes or take steps to ensure the home's heating is maintained. If you don't take one of these two precautions, then you may not be protected against water damage resulting from frozen pipes that burst. Check with your home insurance provider to determine what length of vacation requires you to take extra precautions. You might need to find someone to visit your home on a regular basis while you're away.

 

MYTH #3 - Your valuables are covered if you have home insurance

It is true that many of your valuables and personal property are covered by a standard home insurance policy. However, if you've got special valuables like jewelry and furs, these will need additional coverage. You will also likely need to provide proof of value such as an appraisal or a receipt.

 

MYTH #4 - Current events don't affect my home insurance premiums

Believe it or not, climate change has affected all of our home insurance rates. As certain areas of the country have seen higher risk of extreme weather events (like flooding and fires) premiums are priced according to that risk.

 

MYTH #5 - My insurance protects me against flooding

This depends on the type of home insurance you have sought. A typical home insurance policy will usually cover you for water in your home such as burst pipes. But "overland flooding” - where water flows from outside and in through your doors and windows is less common than you think. In fact, until 2015 Canadians had zero access to flood insurance! Before then we had to rely on the disaster financial assistance programs offered by the government. Today, most home insurance providers offer some sort of freshwater flood optional protection - but you will have to seek it out yourself. Do not assume it is included in your policy. 


 

Did you know some of these myths? Do you know others you'd like to debunk and share? Please let us know! 

 

Thank you for reading today’s BLOG!



 
 

 

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Brian Kondo

Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-683-6025 direct