Common Misconceptions: Home Insurance
- Scott Sweeney
- 2 days ago
- 3 min read
Home insurance is one of the most important parts of protecting your investment, yet it’s also one of the most misunderstood. Many homeowners assume their policy covers everything — until a claim proves otherwise.
Understanding what’s true (and what’s not) about home insurance can help you make smarter coverage decisions and avoid costly surprises later. Here are some of the most common misconceptions I see homeowners make.
1. “My home insurance covers everything.”
This is one of the biggest misconceptions. Standard home insurance policies cover damage from things like fire, theft, and certain types of water damage — but not everything. Flooding, earthquakes, and routine wear and tear are usually excluded and require separate coverage.
2. “The market value of my home is what I should insure it for.”
Your home’s market value and replacement cost are not the same. Market value includes the land, location, and demand — while insurance focuses on what it would cost to rebuild the structure. Insuring based on replacement cost ensures you’re fully protected if major damage occurs.
3. “My personal belongings are fully covered.”
Most policies cover personal property up to a limit, typically a percentage of your dwelling coverage. High-value items like jewelry, art, or electronics may need additional riders or endorsements to be fully insured.
4. “Home insurance covers floods.”
Flood damage is not covered by standard policies. You’ll need a separate flood insurance policy, which can be obtained through the National Flood Insurance Program (NFIP) or private insurers.
5. “If my home is damaged, insurance will pay whatever it takes to fix it.”
Insurance policies have coverage limits and deductibles. It’s important to review your policy annually to ensure your coverage matches current rebuilding costs and that you understand what’s out of pocket.
Final Thoughts
Home insurance isn’t one-size-fits-all — and understanding your coverage before you need it can save you stress and money later.
If you’re buying a home or reviewing your current policy, I’m happy to connect you with trusted insurance professionals and help ensure your home is protected inside and out. 🏡
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About Scott Sweeney
SweeneySells
Full Time Realtor 13 Years +
Over 100 Families Served
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CSUS Business & Marketing Graduate 2006
With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.
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