Homeowners insurance policies can be complicated and hard to understand. Certain terms of the policy may be misunderstood, resulting in inadequate coverage issues in the future. When faced with uncovered or under covered damages, the homeowner will have to pay for them out of his own pocket.

Here are a few common myths surrounding homeowners insurance, believing which may get you into an unwanted fix:

Is My Home Covered When It Comes to Flood Damage?

Homes that are built within a floodplain can be heavily damaged if a flood was to occur. Many homeowners are under the impression that their home insurance covers damages caused by flooding, which is not true. While homeowners policies cover some types of water damage inside your home, they do not cover damages caused by floodwaters. For flood damage to be covered, you would have to purchase additional flood insurance.

Are My Antiques and Collectibles Sufficiently Covered?

Your homeowners policy will cover the majority of your household possessions. However, your antiques, jewelry, collectibles, and other items may need to have additional coverage. If you know that your items are valuable, it is in your best interest to have them appraised to get an accurate monetary value for each such item. Once you know what they are worth, you can have your insurance agent add enough coverage to protect you financially in case of loss or theft.

Are Termites and Mold Covered?

Termites and mold can cause extensive damage to your home that is not covered by your homeowners insurance. These types of damage are considered preventable, and avoiding them is the responsibility of the homeowner. To prevent this type of damage from occurring, the homeowner can have their home inspected regularly. In most cases, the damage caused by termites and black mold is easily visible and can be stopped before it gets severe. Treating your home for termites will eliminate them and get rid of other types of insects.

Will My Homeowners Policy Cover the Cost of Rebuilding My Home?

Many people assume that if they lose their home to a fire or similar disasters, they will receive enough money from their insurance to rebuild a new home. This is not necessarily true. The amount of your insurance payout depends on your home’s current market value. Hence, when the recovered amount is lower than expected, it will mean more out of pocket expenses. The cost of a newly built home may be considerably higher than the value of your old home, leaving you responsible for funding the difference.

Steering clear of these myths about homeowners insurance will give you the peace of mind and the confidence to face unpleasant surprises. If you are looking for homeowners insurance, contact the experts at Weaver & Associates in Arcadia, California, today!