1. Myth: Home Insurance Is Required in Georgia <\/h2>\n\n\n\n
The Truth:<\/strong> Unlike auto liability insurance in Georgia<\/a>, there is no legal requirement for you to carry it in Georgia. But even if your dwelling is paid off, that doesn\u2019t mean that it\u2019s not a good idea! <\/p>\n\n\n\n However, if you have a loan, your mortgage lender will very likely require you to have an active policy as part of your mortgage agreement. Your contract will specify what types of Georgia coverage you need as well as minimum policy limits. <\/p>\n\n\n\n If you don\u2019t get the required coverage, the lender could consider you to be in breach of your loan, inviting all sorts of headaches and added costs. <\/p>\n\n\n\n Second, where you live is probably your most valuable investment. Why wouldn\u2019t<\/em> you want to protect it? Unless you have the money to rebuild your entire house after a fire or storm, this will save you money in the long run. Keep in mind that if your house is destroyed by a fire or natural disaster, you are still on the hook to pay off your mortgage. <\/p>\n\n\n\n The Truth:<\/strong> One of the biggest benefits of this type of protection is that it covers the loss of possessions you keep in your home. But the coverage doesn\u2019t stop there<\/a>! <\/p>\n\n\n\n It also covers your personal items when they\u2019re stolen outside your residence \u2014 for instance, if someone breaks your car window and steals your laptop. In fact, this is the only way to protect your belongings when they leave your house. In the previous break-in example, a comprehensive auto insurance policy<\/a> would cover the cost to repair your car\u2019s broken window, but not the cost to replace your laptop. <\/p>\n\n\n\n Georgia homeowner’s can also cover items in detached structures like sheds, as well as items in storage. However, this coverage is often much more limited, so talk to your insurer to make sure you have the protection you need. <\/p>\n\n\n\n The Truth:<\/strong> Most Georgia policies cover damage from a variety of natural disasters like fire, wind, lightning, and hail. But other types of events, like floods and mold,<\/a> are usually not covered by your policy. <\/p>\n\n\n\n Your policy documents will list what kinds of events are and aren\u2019t covered. Most policies are named perils policies, meaning that you\u2019re only covered for events (or perils) specifically listed on the policy. If you have an open-perils policy, then you\u2019re covered by any event unless it\u2019s specifically excluded from the policy. <\/p>\n\n\n\n If it\u2019s not covered in your policy, be sure to speak to your carrier about adding protection for floods<\/a> and other special events. <\/p>\n\n\n\n The Truth:<\/strong> A common myth about Georgia homeowner’s insurance is that you\u2019ll get fully compensated for your items when you file a claim<\/a>. But what usually happens is that the insurance company will take into account how long you\u2019ve owned the item to calculate the actual cash value (ACV). <\/p>\n\n\n\n For example, if you bought a new TV a while ago for $1,000, it might be worth only half that amount today. So, the insurance company will calculate the ACV to be $500. <\/p>\n\n\n\n If you want to be compensated for the full replacement cost of your possessions, then talk to your insurer about getting a replacement cost value (RCV) policy. With RCV policies, your policy will cover the cost to buy a similar new TV in today\u2019s dollars. <\/p>\n\n\n\n The Truth:<\/strong> Homeowner’s insurance is about more than bare-minimum protection. It\u2019s about having adequate coverage<\/a> and taking the time to understand the value of your possessions as well as what would happen if you suddenly lost them overnight. <\/p>\n\n\n\n One way to start is by prioritizing what you own. For most people, it means ensuring that large appliances, cookware, and basic furniture are all covered. But how much would you miss your laptop if you suddenly lost it? What about your stereo system? When your most important items are financially protected, you know you\u2019re getting the best type of homeowner’s insurance<\/a> for your home. <\/p>\n\n\n\n The Truth:<\/strong> The worst time to get this type of protection is after disaster strikes. Like collision insurance and other types of coverage, your policy won\u2019t work retroactively. So, if your house was burgled on the 15th<\/sup> of the month, a new policy that starts on the 16th<\/sup> will only protect you against future burglaries. <\/p>\n\n\n\n Please note that lying to the insurance company about when an event occurred is always a bad idea. Insurance companies have sophisticated ways to detect fraudulent claims through police reports, witness accounts, and other methods. <\/p>\n\n\n\n If and when you\u2019re caught, not only will the insurance company deny your claim, but you can face felony charges too. In Georgia, the penalties for insurance fraud<\/a> include fines of up to $10,000 and between two and ten years in prison! Therefore, it\u2019s best to report claims on the date they occurred. <\/p>\n\n\n\n The Truth:<\/strong> The average cost can be between about $975 and $1,400 per year, depending on your policy. That amounts to less than $120 per month, maximum. In other words, for the cost of a few nights out with your family, you could be protecting your home, its furnishings, and your peace of mind. <\/p>\n\n\n\n2. Myth: It Only Covers Things Inside Your House <\/h2>\n\n\n\n
3. Myth: GA Home Insurance Covers All Natural Disasters <\/h2>\n\n\n\n
![\"Flooded](\"https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_344300294-1.webp)
<\/picture><\/figure>\n\n\n\n4. Myth: Homeowner’s Insurance Will Provide Full Reimbursement for Your Items <\/h2>\n\n\n\n
5. Myth: The Less Coverage You Have, the Better <\/h2>\n\n\n\n
6. Myth: You Can Always Get It Later <\/h2>\n\n\n\n
7. Myth: Georgians Homeowner’s Insurance Is Expensive <\/h2>\n\n\n\n