Many Americans admit to a knowledge gap when it comes to their homeowners insurance. Common misconceptions about what is, and what is not insured, can lead to gaps in coverage. That’s why it’s important to get educated and regularly review your coverage with your Farm Bureau agent.  

Here, we set the record straight on a few misconceptions revealed by the survey:  

Coverage amounts should be based on the cost to rebuild your home rather than its current market value.
Only insuring your home for current market value could leave you unable to rebuild if your home were destroyed in a fire, tornado or other disaster. The available coverage limit for homeowners insurance is based on the cost to rebuild your home. See the difference proper insurance made for these Farm Bureau customers.  

Homeowners insurance covers the personal property of college-age children living on campus.
A standard homeowners policy will cover the personal property of a college-age child who resides on campus. College students living off-campus should purchase renter’s insurance coverage.  

Additional coverage may be needed to replace valuables, such as jewelry and collectibles.
Generally, your personal belongings are covered as part of your homeowners insurance, but certain limitations may apply, especially to items with a high value. Items, such as jewelry and antiques may need Special Personal Property insurance (also called inland marine coverage). In addition to higher coverage amounts, it also covers hazards that may be excluded under your regular personal property coverage — such as loss or breakage.  

Flood insurance is not covered under a standard homeowners insurance policy.
Coverage for flood damage must be purchased separately through the National Flood Insurance Program. Other causes of water damage, such as sewer or sump-pump backup, may be covered by your homeowners insurance policy by adding a coverage rider. The rider is an additional cost and must be in place before damage occurs to be in effect.  

The best way to make sure that you are properly insured is to regularly review your coverage with your Farm Bureau agent. Any changes to your property, such as home renovations or the purchase of an expensive piece of jewelry, may change your coverage needs. Contact me today to schedule a review.

_{Source: Insurance Journal, Homeowners Coverage Knowledge Gap Wide Among Consumers, http://www.insurancejournal.com/news/national/2010/08/24/112704.htm, visited August 31, 2010.}