Think you understand what’s covered in your homeowners insurance policy? Because some of the things you may believe as “facts” are instead homeowners insurance myths – common misconceptions that many share when it comes to the coverages placed on one of life’s greatest financial assets: your home.
Below are six of the most common myths surrounding property insurance that may help you make the right decisions about your homeowners' coverage.
MYTH: My policy covers flood damage
Water damage can come from things like bursting pipes or leaks, which are covered by most homeowner policies, or from flooding (defined as rising water from outside entering your home), which is not covered by most property insurers, including Citizens.
Flood insurance can be purchased through a private insurer or the National Flood Insurance Program. For some policy types, this flood insurance is a requirement per the Florida Legislature. These flood insurance requirements are being phased in through 2027. Citizens has specific requirements for flood insurance, so Citizens policyholders should check with their agent to learn more about flood insurance requirements.
MYTH: My coverage amount is based on my home’s value.
Your coverage is not based on your home’s market value, which is the value you can expect to sell your home for. Instead, your coverage amount (Coverage A) is based on the cost to rebuild your home in case of a total loss. This is true not just for Citizens, but also for all private-market insurers. This amount is also different than the appraised real estate value of your home. Speak to your agent to make sure you have the proper coverage amount in place.
MYTH: My deductible is my deductible, hurricane or not.
When covered damage is caused by a named storm, your Hurricane Deductible applies. It is generally a higher dollar amount than other policy deductibles because it is based on a percentage of your main coverage (Coverage A) amount. Homes with Coverage A limits less than $100,000 may have a set dollar amount for their Hurricane Deductible. Read more about Hurricane Deductibles. Contact your agent to discuss hurricane deductible options that may be available to you.
MYTH: A tree in my neighbor’s yard just fell into my property and damaged my home. Surely, their insurance will have to pay.
Generally, a property owner is responsible for repairing damage from a healthy tree that fell from a neighbor’s yard. Consult your agent for specific information regarding your policy.
MYTH: My roof is worn out and leaking. Doesn’t my homeowners policy cover this?
Citizens, like other property insurers, doesn’t cover wear and tear or general maintenance. A worn roof, old garage door, outdated chimney, or other features of your home that have simply degraded over time, and losses resulting from such conditions, are not covered under your insurance policy.
MYTH: My personal belongings are covered ... right?
This is another reason why it’s good to get to know the details of your policy and ensure you have the coverage you need. Many insurance companies, including Citizens, have specific policies that cover your personal property at a depreciated value when damaged or destroyed as the result of a covered loss.
They may also offer coverage options that may increase this coverage to fully replace your belongings without deduction for depreciation. Additionally, if you rent the home you live in, your landlord’s policy on the building does not cover your personal property. However, renters insurance is available from most insurance companies (although they may subcontract).
Questions
If you have additional questions about property insurance or myths you want demystified, you can contact your agent directly or Citizens at 866.411.2742.
