There are many misunderstandings out there about homeowners insurance— misconceptions that can lead to expensive mistakes.
According to a survey by insurance marketplace InsuranceQuotes, homeowners tend to overestimate the amount of flood protection they have. Fifty-six percent of respondents still mistakenly believed that a standard homeowners policy covers flood damage. For millennials ages 18 to 36, the percentage rose to 67 percent.
Meanwhile, more than onethird of respondents thought auto insurance would cover items stolen from their car, but actually homeowners or renters insurance would cover those.
Most homeowners underestimate their coverage for dog bites: Regarding potential lawsuits filed by someone bitten by a policyholder’s dog outside their property, few knew they would be protected by their homeowners policy.