At Pike Mutual, we understand that educating our members on property insurance is important so that they can more fully understand their policy and purchase enough coverage for their needs. Despite this, there are still a few misconceptions about insurance policies. Don’t let the following myths catch you off guard!

MYTH #1: ALL POLICIES ARE THE SAME

Not all policies are created equal. From coverage amounts to the quality of coverage, policies can vary significantly from company to company. This is why working with an independent agent is so important. An independent agent will ensure that you get the right insurance solution for your specific needs.

MYTH #2: MARKET VALUE VS. REPLACEMENT VALUE

The difference between market value and replacement value can be confusing. Market value refers to how much your property would be worth if sold. Replacement value (or replacement cost) refers to how much it would cost to rebuild your home. 

The right level of coverage may vary based on your situation, but most insurance policies require that you  insure your property for the replacement value. At Pike Mutual, we do allow for lesser coverage on certain policy types thanks to our versatile approach.

MYTH #3: HOMEOWNERS POLICY COVERS VALUABLES

While homeowners insurance will cover personal property, this coverage often limits the coverage for “valuable items.” Possessions such as jewelry, firearms, or fine art may be subjected to limited coverage or excluded entirely. Read the fine print of your policy to know if you need to purchase additional coverage.

When you separate the facts and myths about property insurance, you can have greater confidence that you’ll have the coverage you need in an emergency. If you have questions about your policy, contact one of our independent agents to get the answers you need.