Home insurance is an essential tool to protect assets and provide peace of mind in the face of unforeseen events. However, there is still a lot of misinformation about this type of insurance, which ends up fueling myths that can negatively influence the decision to take out a policy or understand how it works.
Among the most common beliefs are those related to the types of accidents covered, the assets protected, the responsibility for third-party belongings and even about how reforms can affect the validity of the insurance. Confusion between what is covered by standard and what requires additional hiring can lead the owner to create false expectations.
In this article, we will clarify the five main myths about home insurance, debunking misinformation and explaining how this service really works. Understanding the truth behind these beliefs is essential to make more informed decisions and ensure effective protection for your home.
Home insurance covers all types of accidents
One of the most common myths about home insurance is the belief that it covers all types of claims. While policies offer a variety of protections, they have limits. Each contract clearly specifies which events are covered and which are excluded, so it is essential to read all clauses carefully to avoid mistakes.
Most standard policies include coverage for fires, lightning strikes, explosions, theft and electrical damage. However, events such as floods, landslides, earthquakes and infiltrations generally require additional or specific coverage.
Another important point is that damages caused by poor maintenance of the property, maintenance failures or negligence on the part of the owner, as a rule, are not compensated. Insurance aims to protect against unforeseen events and accidents, and does not cover problems that could be avoided with basic care and preventive maintenance.
Therefore, stating that home insurance covers all types of losses is a mistake. To ensure effective protection, the ideal is to talk to a broker, understand which coverages are essential to your profile and customize the policy according to the real needs of your home.
Landlord insurance covers tenants’ belongings
Many people believe that, when renting a property with insurance contracted by the owner, their belongings will also be automatically protected. However, this is a mistake. Landlord insurance is aimed exclusively at protecting the property itself and does not cover the tenant’s personal property.
This type of insurance generally offers coverage for damage caused by fires, explosions, natural disasters and civil liability for accidents occurring on the property. However, this protection is related to the losses of the property owner, and not to the objects owned by the renter.
For the tenant’s assets to be properly protected, they must take out specific insurance, such as home contents insurance. This modality is customizable and allows you to include personal items of greater value, guaranteeing compensation in case of losses resulting from covered events.
Therefore, it is essential to know the limitations of each policy and align expectations from the beginning of the contract. Believing that landlord insurance covers all risks faced by the tenant can lead to frustration and losses that could be avoided by taking out an appropriate policy for each party.
Reforms do not impact home insurance
It is common to think that small or large renovations carried out on an insured property do not affect the validity of the policy or the amount of coverage. However, this is a myth that can seriously compromise the effectiveness of home insurance.
Significant changes — such as the construction of a new room, changing the roof or changes to electrical and plumbing installations — can impact both the insured value and the risks assessed by the insurer. If these changes are not communicated, the coverage may be considered invalid at the time of an accident.
Furthermore, during the construction period, the risks of accidents, fires and damage increase considerably. Therefore, some insurance companies require additional temporary coverage to be taken out while the renovation is underway, with the aim of ensuring the protection of the property in the face of the new reality.
A Believing that renovations do not affect home insurance is a mistake. Keeping the insurer informed and reviewing the policy whenever there are significant changes is essential to ensure that the property continues to be properly protected — avoiding unpleasant surprises in the future.
Home insurance covers personal property without limits
A very common misconception among policyholders is that they believe that all their personal assets are automatically covered by home insurance, without restrictions. Although most policies include coverage for movable property and personal effects, this protection has well-defined limits — both in total value and by type of item.
Insurance companies usually establish maximum compensation amounts for different categories of goods, such as household appliances, electronics, jewelry, works of art and professional equipment. If the declared or real value of an asset exceeds the expected limit, the compensation may be partial or, in some cases, non-existent.
Furthermore, some policies require the presentation of invoices, reports or photographs to prove the existence and value of assets in the event of an accident. High-value goods or collectibles, for example, may require specific additional coverage (known as an endorsement), contracted separately to ensure adequate protection.
Therefore, it is incorrect to assume that home insurance covers all personal property without limits. To ensure effective coverage, the insured must carefully review the policy, correctly declare the items of greatest value and, if necessary, take out additional protections that ensure fair compensation in the event of losses.
Flood damage is covered by standard insurance
Many people are still under the false impression that standard home insurance provides automatic coverage for flood damage. However, this type of occurrence is classified as high risk by insurance companies and, therefore, usually requires the contracting of specific additional coverage.
Standard insurance usually covers damage caused by fires, explosions, lightning strikes, windstorms and hail. However, flooding resulting from heavy rain, river overflows or drainage system failures are normally not included in the basic policy.
This extra protection — known as coverage against flooding or floods — can be added to the insurance by evaluating the property and the region where it is located. The cost of this coverage varies according to factors such as the frequency of floods in the area, the climate history and the property’s proximity to risk areas.
So not relying solely on standard home insurance to protect your home from flooding is a mistake. Assessing the environmental risks in your location and including specific coverage in the policy is essential to ensure complete protection and avoid unexpected losses at critical times.
Conclusion
Clarifying the most common myths about home insurance is essential for homeowners to make more informed choices and ensure truly effective protection for their assets.
Believing, for example, that the insurance covers any loss automatically or that reforms do not impact the policy can leave the insured vulnerable precisely when they most need support.
By separating facts from misinformation, the contractor begins to better understand the limits and possibilities of insurance, taking advantage of all its benefits with more security and confidence. Properly informed is the first step to protecting your home with responsibility and peace of mind in the face of unforeseen events.
