Homeowners Insurance Myths: Get the Facts Right for Your Langley Home

Understand Your Policy Before a Crisis Hits

Homeowners insurance often goes unnoticed until it’s urgently needed. Picture this: a tree crashes through your roof, your basement floods, or worse. At that point, it’s too late to clarify any false assumptions about your policy. To help Langley residents be well-informed and prepared, we're busting common myths about homeowners insurance.

Myth #1: Homeowners Insurance Covers Everything

A prevalent belief is that homeowners insurance covers any and every type of damage. While many policies offer extensive protection, they do have exclusions. For example, standard policies usually don’t cover:

• Flood damage. Separate flood insurance is available through the National Flood Insurance Program (NFIP) or private insurers.
• Earthquake damage. Coverage typically requires an add-on or a separate policy.
• General wear and tear or maintenance issues.
• Sewer backups. Standard policies generally exclude sewer or drain backups, but a rider can be added for extra protection.

Langley homes might be particularly susceptible to flooding near the Nicomekl River or from Fraser River overflows. Make sure to read your policy thoroughly to know what is covered and what isn’t.

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

It’s easy to think that insurance should match the market value of your home. However, insurance is based on the cost to rebuild, not the resale value. Market value includes land and location factors, whereas replacement cost centers on materials and labor to reconstruct. With construction costs on the rise in the Langley area, periodically reviewing your policy is essential to ensure adequate coverage.

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

Liability coverage typically protects you if someone gets injured on your property, but there are exceptions. For instance, if an injury results from neglect—like ignoring a rotting deck—you could be liable beyond your policy limits. Also, if you run a home business and a client gets hurt, your standard policy may not cover it.

Myth #4: My Policy Covers My Valuables Fully

Most policies have coverage limits for high-value items such as jewelry, artwork, collectibles, high-end electronics, and firearms. If an expensive item is stolen or damaged, your policy might only reimburse a portion of its value. If your Langley home houses high-value items, consider a scheduled personal property endorsement to insure these items fully.

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

With the rise in remote work, many homeowners mistakenly assume their standard insurance fully covers work-related items and activities. Most standard policies have limitations on business property and won’t cover employer-owned equipment. If you have a home-based business, consider:

• Home-based business policy.
• Business property endorsement.
• Commercial liability coverage.

Evaluate your policy to ensure your work items and activities are adequately protected.

Myth #6: Homeowners Insurance Covers Mold and Termite Damage

Mold and pest damage are typically seen as preventable maintenance issues, not sudden or accidental damage. Standard policies usually don’t cover them. However, if mold results from a covered incident, like a burst pipe, your policy may help with remediation costs. Regular home inspections can prevent long-term issues.

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

This surprises many. Usually, your insurance covers the damage to your property, regardless of where the tree originated. However, if the neighbour was negligent, you might be able to file a claim with their insurance.

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

This isn’t always true. Insurers consider various factors when adjusting premiums, including claim history, claim types, and location. A small claim might not significantly affect your premium, but frequent claims could. Weigh repair costs against your deductible before filing.

Final Thoughts

Homeowners insurance is a crucial safeguard. Understanding what your policy covers prevents costly surprises. If you have questions about homeowners insurance and how it affects your real estate decisions in Langley, let's discuss it together.