7 Homeowners Insurance Myths That Could Leave You Stranded

Congratulations! Whether you just bought your first home or you’re deep in the house-hunting trenches, you’re in the wild world of homeownership. Welcome to endless projects, unexpected surprises, and a place to watch a family grow.

But here’s the thing: while you’re busy picking paint colors and planning renovations, your homeowners insurance is probably the last thing on your mind. After all, you set it up once and forget about it—right?

Not so fast. Many homeowners are underinsured, missing discounts, or simply unaware of what their policy actually covers. To help you avoid costly surprises, here are seven things most people don’t know about their homeowners insurance:

1. An independent insurance agent can save you money and headaches

Buying insurance is not like ordering a bath mat online. An independent agent can run an “insurance checkup” to evaluate your coverages, compare quotes across multiple carriers, and make sure you’re not leaving dangerous gaps in your protection.

2. Water damage isn’t always covered

This one shocks homeowners every year. Most policies only cover water damage from inside the home or through a storm-created opening. Floodwater, broken water mains, and certain types of seepage? Usually excluded. Before storm season hits, find out exactly what’s covered and whether you need separate flood insurance.

3. Your policy has exclusions and limits you need to know about

Every homeowners policy comes with exclusions (think: floods, earthquakes) and special limits on items like jewelry or watercraft. Don’t wait until you file a claim to learn what’s not covered. Sit down with your agent to review your policy and make sure you aren’t unknowingly underinsured.

4. Renovations and upgrades can affect your coverage (and discounts)

If you remodel your kitchen, replace your roof, or add a central alarm system, tell your agent. Upgrades can change the value of your home and impact your coverage needs. They can also unlock discounts you might otherwise miss.

5. A home inventory can save you a massive headache

After a fire, storm, or burglary, the last thing you want is to wonder, “What exactly did we have in there?” A simple way to protect yourself: snap photos of each room once a year to create a personal home inventory. It’s a lifesaver during claims.

6. Your coverage amount ≠ your home’s market value

One of the biggest misconceptions in insurance is that your coverage should match the purchase price of your home. In reality, rebuilding costs can exceed market value due to debris removal, materials, and labor. Don’t assume—verify with your agent.

7. The cheapest policy isn’t always the best policy

It’s tempting to shop on price alone, but insurance is one place where “you get what you pay for” really applies. Before you choose a policy, ask: Is the company financially stable? How do they handle claims? A bargain isn’t a bargain if it leaves you unprotected.

Owning a home is complicated enough. Your insurance shouldn’t add to the stress. Talk to an independent agent like us, review your policy regularly, and make sure you’re covered where it counts. Give us a call: 478-745-7200.