Have you read and understood the terms of your New York home insurance policy? Have you asked your agent or insurer to clarify or explain anything you found confusing? Or have you made a lot of assumptions about your home insurance based on myths, misinformation and misunderstandings?  Let’s consider three common myths.

1.    Myth: When my home is burgled all I need to do is tell my insurer what was stolen. Fact: Your insurer will require you to provide a list of every item that has been stolen often including details such as date of purchase; purchase price; make, model and serial number. A home inventory may help to prove your ownership of the items and their value.

2.    Myth: The replacement cost of my home is the price I paid for it. Fact: The replacement cost of your home is the amount it would cost to rebuild it at current construction costs. The price you paid for your house includes the value of the plot of land it is built on; the land does not have to be replaced when the structure is replaced.

3.    Myth: The only way I can reduce home insurance costs is to skimp on coverage. Fact: There are many ways to reduce home insurance costs, including raising deductibles, claiming discounts and – most importantly – shopping around for the best value policy.

Avoid making unfounded assumptions about home insurance, and never make financial decisions based on hearsay. Talk to your agent or insurer if you are uncertain about the protection offered by your New York home insurance policy.

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