Common Homeowners Insurance Myths Debunked in Metrowest

Homeowners insurance isn't something people often consider until they're in the middle of a crisis—a tree crashing through the roof, a burst pipe flooding the basement, or worse. By then, it's too late to address any misconceptions about your policy. Myths about homeowners insurance are plentiful, so let's clear the air and make sure you have the information needed to make informed decisions in Metrowest.

Myth #1: Homeowners Insurance Covers Everything

A major misconception is that homeowners insurance covers all types of damage or disasters. While many policies in Metrowest offer broad protection, they come with exclusions. For instance, standard policies typically don’t cover:

• Flood damage: Homeowners usually need to buy separate flood insurance through the National Flood Insurance Program (NFIP) or private insurers.
• Earthquake damage: In Metrowest, earthquake coverage must often be added as an extra or separate policy.
• General wear and tear or maintenance issues: Insurance is meant for sudden, accidental damage, not gradual deterioration from neglect or aging.
• Sewer backups: Standard policies generally exclude sewer or drain backups, though many insurers offer extra riders for added protection.

It's essential to read and understand your policy thoroughly to grasp what’s covered—and what isn't—before making any assumptions about your protection.

Myth #2: My Home is Insured for Its Market Value

Many Metrowest homeowners believe their insurance should match their home's selling price. However, insurance is based on the cost to rebuild, not the resale value. Market value includes land and location factors, while replacement cost is all about materials and labor to reconstruct the home. With construction costs always changing, reviewing your policy periodically is crucial to ensure adequate coverage.

Myth #3: If Someone Gets Hurt on My Property, It’s Always Covered

Liability coverage does protect you if someone is injured on your property, but there are exceptions. For instance, if an injury happened because of negligence—like ignoring a rotting deck railing—you could be sued for damages beyond your policy limits. Additionally, if you run a home business, a client's injury might not be covered by your standard policy.

Myth #4: My Policy Covers My Valuables Fully

Most homeowners policies have limits on coverage for expensive items such as jewelry, artwork, collectibles, high-end electronics, and firearms. This means that if a valuable item is lost, stolen, or damaged, your policy might only reimburse a fraction of its worth. If you own items that exceed these limits, adding a scheduled personal property endorsement can ensure they are fully covered. It’s wise to review your policy, get professional appraisals for valuables, and keep an updated inventory.

Myth #5: I Don’t Need Additional Insurance Because I Work from Home

With more people in Metrowest working remotely, many assume their standard insurance fully covers work-related equipment and activities. This is often incorrect. A standard homeowners policy may offer limited coverage for business property and might not cover items owned by your employer.

• Limited coverage for work equipment: Your policy may have a reimbursement cap and might not cover employer-owned items.
• No business liability protection: If someone is injured on your property in a business context, you could be personally responsible.
• Business inventory not covered: Standard policies likely won’t protect business materials stored at home against various damages.

To ensure you're fully protected, consider home-based business policies, business property endorsements, or commercial liability coverage. Check with your insurer to find what’s right for your situation.

Myth #6: Homeowners Insurance Covers Mold and Termite Damage

Pest and mold damage are generally considered preventable maintenance issues, which means most policies don’t cover them. If mold results from a covered peril, like water damage from a burst pipe, your policy may help pay for remediation. But if it comes from long-term issues, you'll likely be left to handle it yourself.

Myth #7: If My Neighbor’s Tree Falls on My House, They Pay for It

This can be surprising. Typically, your insurance covers damage to your property regardless of the source of the tree. However, if your neighbor knew the tree was a hazard and neglected it, you might be able to file a claim with their insurance or take legal action.

Myth #8: Filing a Claim Always Leads to Higher Premiums

Not always. Insurers look at multiple factors, including your claims history, the type of claim, and your location when adjusting rates. A single small claim might not impact your premium much, but frequent claims or high payouts could raise your rates. Carefully weigh repair costs against your deductible before filing a claim.

Final Thoughts

Homeowners insurance is essential but not a one-size-fits-all solution. Understanding what’s covered and what isn’t can help you avoid costly surprises. If you're uncertain about your coverage, take the time to sit down with your insurance agent and review your policy to ensure you’re properly protected.

Have questions about how homeowners insurance affects your real estate decisions in Metrowest? Let's chat.