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Debunking 7 Common Home Insurance Myths

November 28, 2021 General

Home insurance is one of the most important investments you can make when you buy a house. If you’re a Michigan resident and you own your home, you most likely already have coverage. However, you may not be fully aware of all the different aspects of your home insurance policy and the coverage it provides.

That’s why we’ve compiled these seven myths about home insurance. Here at Encore Insurance Group in Michigan, we offer custom-built policies for homes, cars, boats, RVs, ATVs, and life insurance. Our knowledgeable insurance agents can help you explore our available policies and find one that suits your needs. All you have to do is pick up the phone and call us at 248-466-0200 to schedule an appointment.

Different Types of Homeowners Insurance in Michigan

Replacement Cost

This policy type covers the monetary value of your house and assets with no depreciation deduction.

Actual Cash Value

Actual cash value policies also cover your house and possessions, but this policy type deducts for depreciation.

Guaranteed Replacement Cost

Guaranteed replacement cost policies offer coverage for the total cost of repairing your home, even if the final amount is over what you originally paid.

7 Common Myths About Home Insurance

MYTH 1: Homeowners Insurance Is a Waste of Money

TRUTH: If a disaster were to occur, your policy could provide you with thousands of dollars to rebuild the damage. It can also cover the cost of alternate lodgings for you during home repairs and replacing your damaged belongings.

MYTH 2: Buying a Home Insurance Policy Is Too Expensive

TRUTH: Buying a policy to protect your home is more affordable than you think. At Encore Insurance, we offer a wide range of cost-effective insurance policies that provide coverage for your home and belongings.

According to, the average cost for home insurance in Michigan is $1,120 each year. However, considering the thousands of dollars it would cost to repair your home in the event of major damage, that number pales in comparison.

MYTH 3: You Don’t Need to Make an Inventory of Your Property

TRUTH: Many people think that documenting all their belongings is a waste of time. However, having a complete inventory is necessary if you ever have to file a claim for your belongings. If you can’t officially prove that you owned the item in question, you’ll have a hard time claiming reimbursement for it.

MYTH 4: Home Insurance Covers All of Your Property

TRUTH: Home insurance covers your belongings, but most policies have a limit on the amount of coverage they provide. When purchasing a policy, ensure that your coverage amount is enough to cover your valuables in the event of theft or damage.

MYTH 5: Filing a Claim Always Increases Your Monthly Premium

TRUTH: Filing a single claim on your home policy rarely results in a premium increase. However, if you ever need to file multiple claims, you can generally expect a rate increase. That’s why some homeowners choose to pay for repairs themselves rather than filing, but only if the total repair cost is close to their deductible.

MYTH 6: You Have to Lower Coverage to Lower Your Premium

TRUTH: It’s never a good idea to skip out on coverage just to save money on your premium. In the long run, you’ll end up costing yourself even more. Instead, ask your agent what types of discounts you could qualify for, like installing a security system or fortified door locks.

MYTH 7: You and Your Family Are Covered for Injuries Sustained on Your Property

TRUTH: A home insurance policy with a medical payment clause only covers injuries if a non-family member gets injured. You and your family won’t have coverage under a general homeowner’s policy for medical expenses.

Contact the Experts at Encore Insurance Group in Michigan

We hope that we’ve finally debunked these common home insurance myths for you. As you can see, obtaining a home insurance policy is a wise investment in your future. Contact the professionals at Encore Insurance today to schedule your initial consultation. Call us at 248-466-0200 to speak with one of our professional and knowledgeable insurance agents.