Home Insurance Myths You Need to Be Aware Of

Home insurance is a complex topic because not many people are knowledgeable about it. And those who may know a little about are confused because of the myths that surround it. 

While the terms and coverages of home insurance depend on the home insurance brokers themselves largely, here are some common myths that simply do not hold true:

Myth #1: All My Valuables Are Covered

Insurance plans are built based on the coverage needs of the owner and the relative value of their belongings. If a policy fails to adequately cover a home or homeowner’s belongings – and they should know – that policy is useless. A homeowner can ask his/her insurance company to consider an endorsement or add-on to the policy if they believe their needs are not adequately covered.

Myth #2: My Home Insurance Premiums Are Not Affected By Current Events

Home insurance premiums can indeed change due to external events. For example, if the region has experienced a recent storm and resulting property damages, the premium may be higher. The premium increase is meant to restore the company’s buffer fund to its appropriate level.

Myth #3: Insurance Always Covers Flooding

This is a tricky one. In some cases, coverage for flooding is included in a homeowner’s policy, but there are usually limits. Speak with your broker about the limits of your flood coverage.

Myth #4: I Can’t Get Insurance for My Condo

A common misconception is that only homeowner’s insurance can cover a home. In reality, there are several types of insurance policies homeowners can purchase to cover their residences. While there are many commonalities between policies, the one that applies to a condo will vary significantly from a homeowner’s policy. Condo owners may need a policy that includes personal property coverage, for example, since their personal property is often not covered by a homeowner’s policy.

Myth #5: Insurance Is Cheaper for Older and Less Expensive Properties

While a home’s age may be taken into consideration when determining premiums, a home’s age is not the only thing that determines insurance costs. The home’s location, its design, the home’s cost to rebuild and the type of material it is made with all affect the premium.

Myth #6: If My House is a Total Loss, I Am Covered

Unfortunately, this isn’t true. If a home is a total loss, even if it was 100 percent covered by insurance, a homeowner may still have to pay the difference. For example, if a home was insured for $1 million and it is a total loss after a storm, the homeowner would still have to come up with the difference between the cost to rebuild and $1 million. Talk to your broker about guaranteed replacement cost—- this is the key to ensure you are fully covered.


There are several reasons many people do not have adequate home insurance. A lot of people think they do not need it while others are simply misinformed. However, even if you are one of the few who are knowledgeable about home insurance and you understand it, you may want to consult one of the trusted home insurance brokers in your area. There is always something to learn.

Kirkham Insurance is one of the most trusted home insurance brokers in Lethbridge that can answer all your queries about home insurance and, of course, provide you with a plan that meets exactly your needs. Get in touch with us to get a quote!

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