For residential property owners, protecting their residences is a top priority. Fortunately, it's also simple to do so. Homeowners insurance covers you for a variety of events and types of damage, but some widespread misinformation can prevent you from finding the right policy. Before deciding on a plan, find out the truth about common myths.

What Are Some Misconceptions About Homeowners Insurance?

1. State or Federal Laws Require Insuring Your Home 

None of the 50 states in the country or the District of Columbia require you to purchase a homeowners insurance policy for your residence. However, coverage will affect any loan applications. A lender will ask for proof of insurance if you want to obtain a mortgage to buy a home. They need it to ensure the protection of their financial investment in the property in case of damage caused by events like fires or storms.

2. Coverage Should Equal the Home's Market Value

Homeowners insurance compensates you for losses and damage caused by unforeseen events, such as fires, lightning strikes, windstorms, and hail. Therefore, the coverage should be large enough to pay for repairing or rebuilding your residence. 

This figure is not the same as the property's current market value or the amount you paid for it. Instead, the replacement cost is calculated by multiplying the structure's square footage by current construction costs.

3. Insurance Covers Medical Bills

A homeowners policy will typically cover medical expenses incurred if a guest experiences an injury while visiting your property. These bills are often paid under your liability insurance provisions. However, this doesn't mean that the coverage will also cover your medical expenses if you or a family member get injured at home. 

Whether buying a home or considering replacing your current homeowners insurance plan, turn to Advance Insurance in Las Vegas, NV, for dependable coverage. This agency has offered area residents a variety of policies to fit their budget at the best rate possible since 1989. To learn more about their coverage solutions, visit them online or call (702) 254-6141 to request a quote.