Homeowners Insurance Lies

Posted May 31st, 2010
by HomeownersInsurance.org Staff (1 comment)

Let’s face it: your homeowners insurance agent might be a good guy. He might be your cousin, or a neighbor. In many cases, your insurance agent is just looking out for you, and wants to make sure that you and your family are taken care of if disaster should strike.

Then again, he may not have your best interests at heart. He may be a lying scoundrel who’s trying to separate you from your wallet. You may not even know it.

In fact, he may be both of these things all at once.

So, what are you to do? Well, you need to cut through some of the big lies about homeowners insurance and get down to the truth. Here are some of the biggest misconceptions about homeowners insurance that you might hear from a salesperson:

  • You need more coverage than the value of the home and its contents. You may want more coverage, sure. But you don’t need it. You should start any process with a homeowners insurance salesperson by asking what the minimum amount of coverage allowed by your lender is and starting from there.
  • Your homeowners insurance will cover most disasters. In fact, homeowners insurance isn’t so much meant for disasters as it is mundane events. Yes, fires are covered. But floods and earthquakes, as well as things like acts of war, aren’t covered. Your homeowners insurance coverage is most important for things you don’t think of, such as liability.
  • You need a bunch of riders. Because your homeowners insurance doesn’t cover flooding or earthquakes, your agent may try to tell you that you need some of these things. Unless the area you live in is very prone to these kinds of problems, however, you may be better off without these kinds of coverage.
  • Your agent will always get you the best deal. Even if your agent is a nice guy, and even if he works hard to find you every possible discount, there is still the possibility that another company would cover you for less money. You still need to comparison shop before you settle in on a provider.

Photo via Billings Photography

What people are saying:

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  • Posted July 24th, 2010 by Ruby Clifton at 8:14 pm - Reply

    Its a known fact, that many insuring agents force some riders upon you(even if you don’t need them) just to earn some extra commission. Always be watchful when you sign on the dotted line. Don’t take them on the face value, or trust them blindly. Take as many quotes as possible from different agents, and choose what is most suitable for you.


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