Homeowner’s Quiz: How Much Do You Know?

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Insurance policies can be confusing. So confusing, in fact, that according to a 2010 MetLife survey published in Smart Money magazine, 31 percent of homeowners had no idea what their home was insured for, and 46 percent didn’t know which belongings were covered by insurance. No one wants to go through daily life assuming the worst is going to happen, but when it does, don’t be caught unprotected. Take the true or false homeowner’s quiz below to find how much you know. 

True Or False?

  1. True or False: The amount of money that you are required to pay out-of-pocket payment before your insurance kicks in to pay the rest of the claim is called your premium.
  2. True or False: You only need enough insurance coverage to cover the market value of your home.
  3. True or False: Standard homeowner’s insurance policies cover flood damage.
  4. True or False: Even small exterior cosmetic upgrades will affect your insurance.

Answers:

  1. False: The amount you must pay out-of-pocket is called your deductible. Your premium is the annual amount you pay to have your policy. The higher the deductible the lower the premium. However, lower deductibles reduce your out-of-pocket expenses.
  2. False: The amount of insurance you purchases should cover the replacement cost of your home in case of total loss and you need your home rebuilt.
  3. False: The standard homeowner’s insurance policy does not cover flood damage. The primary source for flood insurance is the National Flood Insurance Program (NFIP) administered by the Federal Emergency Management Agency (FEMA). There are also private insurers. However, FEMA allows local insurance agents to write flood coverage.
  4. True: Exterior cosmetic changes such as painting and landscaping increase the value of your property. When making such improvements reassess your insurance coverage to make sure it covers your property’s value.

ABOUT YOUR DALLAS INSURANCE COMPANY:

With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets. To learn more, or to get a free quotecall our Carrollton office today at 972-492-8500.