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Debunking Some Home Insurance Myths

Professionals in the insurance industry, much like lawyers and the legal profession, often battle various misconceptions about the finer details of the system they work within. It probably comes as no surprise that many people hold on to misconceptions about how car insurance can work… but the world of homeowner’s insurance has its share too. The difference with homeowner’s insurance myths is that there seems to be more inaccurate information about things that will cause your premiums to increase when in reality, they have absolutely no impact at all on calculating your rates. Below are five of the most common examples.

The number of children you have.

We’re not even sure how this one got started, or when, but many people still believe that the more children you have, the higher your homeowner’s insurance rate will be. It’s completely false. All other things being equal, you’re going to pay the same premiums to protect your home whether you have an only child or nine kids

You have gas rather than electric appliances.

Whether your stove, dryer, hot water tank or any similar appliance is run by gas or electricity, your premiums are going to be the same.

Your age or marital status.

Your Facebook friends might watch your relationship status, but your insurance provider does not. And, unless you’re old enough to be reviewing your retirement portfolio, your age is not going to be a factor in your house insurance rates. If you are close to retirement age, it might affect the rate, but it only means you might qualify for a discount. Discounts vary from provider to provider, and your DPM Insurance Group Broker/CSR will be happy to outline the different options available to you.

How big your mortgage is.

What’s left owing on your house is irrelevant information to those calculating your premiums, with two minor exceptions. If you have multiple mortgages on the same house, this might increase what you have to pay for coverage. On the other hand, if you’re mortgage free, you could qualify for a discount.

What your home is worth on the open market.

This one surprises many people, because they assume the more money you can get for your home should you sell it, the more you will have to pay to insure it. But that’s not really the case. Your house isn’t insured for the market value, it’s insured for the expected cost to rebuild a duplicate of it – material, labour, the necessary permits and other similar factors should there ever be a total loss of the home from something like a fire. 

Put DPM to work for you

While the five items above aren’t going to affect your home insurance rates, one thing that might is working with a Broker/CSR at DPM Insurance Group. We work with a variety of insurance carriers and will shop them on your behalf in order to get you the best possible rate. Call us for a free, no obligation policy review and find out just how much you could save on your next renewal.


Source: Lesley Green for insurancehotline.com


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