Three Common Myths About Home Insurance

May 16, 2023

Buying a home is a significant moment in your life, and usually a stressful one. Protecting that investment is important. Home insurance can be confusing and daunting for homeowners, but Davis Insurance Advisors aims to make the process simple. 

There are a lot of misconceptions when it comes to home insurance, so continue reading to see some of the most common myths addressed. 


Home Insurance Is Too Costly 

For most people, a home is the most expensive investment they will ever make. That makes your home an asset worth protecting. 

In 2023 the average price of homeowners insurance is $1,383 per year or roughly $115 per month for a policy with $250,000 in dwelling coverage. 

Homeowners insurance means the difference between the ability to rebuild your home and replace your belongings after a catastrophe or likely finding yourself unable to replace your home and all of your belongings. 

Not only does homeowners insurance protect you from disaster, but many people don’t realize that it protects you from lawsuits. If someone were to get injured on your property, they could sue you for everything you own without homeowners insurance to protect your assets. 


I Need To Insure My Home For Its Market Value 

A common misconception is that you need to have insurance for the market value of your home. The most important thing is that your coverage is for the replacement cost of your home and your belongings. This includes all associated costs with rebuilding, such as materials and construction. If your coverage is for the market value of your home, you run the risk of either overpaying for your coverage or coming up short on coverage in the event of a disaster. 


If I File A Claim, My Premiums Will Go Up 

A widely held belief is that if you make a home or auto insurance claim, your rate will immediately skyrocket. While it is true that individual claims may slightly impact your rate, a single claim usually won’t make much of a difference. 

However, making multiple claims in a short period of time will cause an increase in your premium. You should always consider whether or not it makes sense to file a claim by comparing the out-of-pocket cost with your deductible.


Want To Learn More About Home Insurance? Contact Davis Insurance Advisors

Davis Insurance Advisors believes insurance is more than protection, it’s a promise that in the event that catastrophe should strike, we will be here to help you put the pieces back together. If you want to learn more about how to best protect your home and your belongings, contact Davis Insurance Advisors today. We’re here to be your guides through the insurance process!