Homeowners Insurance Myths Debunked by Equifax

October 09, 2013

Homeowners insuranceThe insurance pros at the Equifax Finance Blog debunk some popular homeowners insurance myths in their new article, “

Seven Common Homeowners Insurance Myths.”

Here’s a rundown of a few:

Myth: Your insurance will cover your home while you take up temporary occupancy elsewhere.

Fact: In most states, the homeowners policy covers “a residence regularly occupied and furnished for the personal use of the named insureds and their resident relatives.” Once you change occupancy, your policy may deny a claim on the property. If you are having construction done as the reason for your temporary move out, you’ll need a builder’s risk policy to cover your property while under construction.

Myth: Your insurance will cover damage caused by wind at replacement cost.

Fact: Items damaged due to wind are subject to depreciation and paid on an actual cash basis on most homeowners policies.

Myth: Your neighbor’s policy will reimburse you for damage caused by one of their trees falling onto and damaging your fence during a storm.

Fact: Wind is an act of nature and your neighbor would not be held liable for the damage. This would be a claim against your own homeowners policy, subject to your deductible.

Myth: Your $1,000,000 liability homeowners policy means that you do not need an umbrella policy.

Fact: Your liability coverage would protect you if someone trips and falls on your property or if someone is injured playing in your backyard; it will not cover you if you seriously hurt someone while renting a car or boat on vacation. In a situation like that, you may need an umbrella insurance policy.

Their bottom line is to get in touch with your insurance agent to review your policy to make sure that you are adequately covered, or if you need to purchase additional protection. Read the full article and get more insurance advice on the Equifax Finance blog. While there, check out the wealth of advice on all kinds of personal finance subjects, from insurance to

credit scores to real estate to taxes, identity theft protection and more.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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