Your home is one of the biggest investments you can make, so you naturally want to protect it with adequate insurance. Before you purchase a policy, it is important to get the facts about it. Unfortunately, there are a lot of myths circulating around home insurance that can cost homeowners.

All the Items in My House Are Covered

A common misconception people have about home insurance is that all the belongings in their home are automatically covered. The truth is, however, that home insurance is not set up to cover every little item. Personal belongings, such as furniture, clothes and household appliances, are not covered in a standard policy. If you have very valuable items in your house that you want to protect, you may need to purchase an additional policy for them.

A Standard Policy Includes Flood Coverage

Flooding can do significant damage to a house, but it is not covered under a standard home insurance policy. If you live in an area that is prone to flooding, it may be worth it to invest in a separate flood insurance policy.

You Should Insure Your Home for Its Market Value

Many people make the mistake of insuring their home for its market value, which isn't enough. Instead, you should insure your property for its replacement cost. This way, you take into account the costs associated with rebuilding your home from the ground up.

A Home Insurance Policy Will Replace My Items Like New

Unfortunately, this is not true. Your insurance provider will likely reimburse you for the value of your items at the time of the loss. If any of your items have lost their value over time, you might receive enough money to purchase them at today's prices.

Home Insurance Covers Pest Infestations

It is no secret that termites and other pests can destroy your home. Unfortunately, your home insurance company will not cover the damages because they are considered a maintenance issue. To prevent potentially thousands of dollars in damages, you should have a reputable exterminator inspect your house for pests from time to time.

As you can see, there are all sorts of myths about home insurance. If you have additional questions about your policy, do not hesitate to reach out to your insurance agent. He or she will be more than willing to answer your questions and provide you with valuable advice about your policy.