The experts over at the Equifax Finance blog debunk some widespread homeowners insurance myths in the recent article, “Seven Common Homeowners Insurance Myths.”
Here’s a quick review of myths one through three:
Myth 1: Your policy covers injuries to contractors working on your property.
Fact: In most states, your homeowners insurance many cover a part-time worker such as a babysitter or housekeeper who is injured on your property. Workers such as plumbers, roofers, landscapers, etc., should carry their own workers compensation coverage. Before hiring such a contractor to do work on your property, request a Certificate of Insurance naming you as additional insured. If you employ someone full time on your property, such as a caregiver or nanny, contact your insurance company to find out if you should be providing workers compensation coverage on those employees.
Myth 2: Your college-aged child’s belongings are covered when he or she takes them away to college with him or her.
Fact: It depends on your coverage. Your child’s belongings, especially electronics, may not be covered. Contact your insurance agent to find out whether or not they are covered, and if you need to purchase additional insurance for those belongings.
Myth 3: Your insurance would cover any property or liability claims against your home-based business, since you have no employees.
Fact: Even if you don’t have any employees, your homeowners insurance likely will not cover any loss of income, or liability or defense claims against your business. The article gives the example of a delivery person tripping outside of your home delivering boxes for your business. Your homeowners insurance likely would not cover his or her injuries. Contact your agent to find out if you can add a rider to your existing homeowners policy or if you’ll need to purchase a separate policy.
Read the rest of the myths and the expert advice accompanying each myth in the full article on the Equifax Finance blog, where you can also find more helpful advice on insurance, real estate, and other personal finance topics like retirement, taxes, investing, identity theft protection and more.