Debunking Luxury Home Insurance Myths That Are Holding You Back

While there is little doubt that home insurance is among the most common types of insurance in the industry, it’s yet to become a necessity for most homeowners. This can be attributed to a lack of awareness among property owners as well as misconceptions that have been peddled for years. In this article, we take a look at some of the most common luxury home insurance lies, half-truths, and myths that could be stopping you from protecting your most prized asset.

My Coverage Limit Should Match My Home’s Value

A good number of homeowners erroneously think that it is okay to peg their home structure’s coverage on its present market value. This is certainly not the wise thing do to do. The truth of the matter is that your purchase price can be less or more than what it would take to rebuild the home should you suffer a loss. When deciding on the amount of coverage to take, it is advisable to ensure the insurance is enough to cover the cost of a rebuild.

I’m protected From Injuries That Occur In My Home 

If you or one of your family members suffers an injury when within the precincts of your roof, they wouldn’t be eligible to file a claim under the homeowner’s policy that you carry. Instead, you would file it under your health insurance claim. But what if it’s a guest that get’s injured when in your home? In that case, you would need to turn to your liability protection. Liability coverage will protect you from taking liability for bodily injuries suffered by visitors to your home up to the limit of your liability.

My Insurance Company Will Cover the Cost of My Hotel Accommodation during Repairs

If your home luxury policy doesn’t contain a loss-of-use provision, then you will be on your own during rebuilding or repairing your home. You should be ready to meet the costs of meals, hotel accommodation, transport expenses, and other costs.  And remember that the repairs could take a lot longer if your displacement has been occasioned by fire or flood as repairs for these tend to take much longer. Some carriers can restrict the amount of time or impose a maximum per diem. Figure out how much you would require covering hotel and meal expenses, and talk the right company like to Langs High Net worth Insurance people regarding your loss-of-use coverage.

Luxury Home Insurance is Expensive

This is among the biggest lies ever told about luxury home insurance to homeowners about buying a home insurance premium. On the contrary, luxury home insurance is quite affordable. You have to consider the value of your home and all the valuables contained therein that you could lose in the event of a covered accident like a fire, storm, or flood. The loss would be nothing compared to a few hundred dollars you pay per month.

My Homeowners Insurance Will Protect Me from All Water Damage

There is a stark difference between water damage resulting from floods or storms that brought about by pipe bursting or a leak. Damage caused by water from a flood is the same as damage occasioned but other natural catastrophes and often requires that you purchase a separate insurance policy. Also, you could be at risk if it were to be proven that the damage resulted from improper maintenance, for instance, due to inadequate waterproofing or a leaky roof. Make sure all your maintenance records are kept properly to help you should you need it.

Bottom-line

To know to what extent your homeowner’s policy covers you, it is important that you read the document thoroughly. Check the policy for any exclusion and determine how much it would take you to cover those risks. There are certain instances in which your insurance carrier will have different add-ons to be attached to your policy.

Another option would be to obtain specialized insurance from a different company. In the case of those risks that the insurance company cannot insure, do an analysis of how you will cover them financially in the unfortunate event that they occur. This will help ensure that you are covered properly and not stranded in case of a loss.

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