Get this straight; a home is for a long time, no doubt. You need to protect your investment with home insurance along with purchasing it. No putting it off for any reason. Apart from natural disasters, human thefts and vandalism abound. Lenders insist borrowers make their finance secure with insurance.

But what about common myths that send you up the wrong path? Consider a few and take a reality check to set yourself straight.

Myth No. 1: Home insurance is a rip-off

Health insurance costs vary according to state, house square footage, local building costs, likelihood of natural disasters. You will get an idea for your premiums from national average of $952 an additional less than $79 to house budget. Expert opinion says it is well worth the additional cost.

Jeanne Salvatore, chief communications officer at the Insurance Information Institute says, “Considering the financial protection that you’re getting, it’s well worth the cost.”

Myth No. 2: All of a home’s belongings are covered

Health insurance does have limitations just like car or health insurance. Homeowners’ insurance policies put what’s covered and what’s not covered in print. Insurance covers home from natural disasters of fire, hurricane or snowstorm. However, basic insurance does not cover some personal belongings.

According to Laurie Pellouchoud, vice president at Allstate, “If you have valuable art or fine jewelry, you might need a scheduled personal property policy to cover those items.”

Myth No. 3: All injuries within a home are covered

Home insurance policy does not cover you or family members for injuries in your own home. Your health insurance policy will do that. Yes, visitors or anyone from outside getting hurt in house or on property will get benefits of home insurance claims. I hope that is clear to you now.

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Myth No. 4: I should base my coverage on the market value of my house

A recent survey by found one in two homebuyers or homeowners mistake market value as the sum to be insured. Actually, home insurance policy calculate rates on cost to rebuild instead of market value. Salvatore says, “In most cases you need less coverage than the market value of your house.”

Myth No. 5: My home business is covered under home insurance

Fact is Americans neglect adequate business insurance. Home owners running a business from home get confused and assume home policy will cover business too. “Business liability and business equipment is not covered by homeowners insurance,” according to Salvatore. Please purchase a separate insurance policy for your business. Alternatively, attach a business rider to your existing home insurance policy for about $100 a year, which will provide about $2,000 to $3,000 of additional coverage.

Myth No. 6: Flood coverage is included in standard policies

Standard home insurance does not provide flood coverage. Those living in flood zones are expected to get separate flood insurance. You have options from federal government’s National Flood Insurance Program and private insurers. Other home owners close to or away from flood zones need flood insurance too. Look up price quotes for your area on FEMA’s Flood Map Service Center.

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