1859 Mutual

In the narrative of our growth, Pike Mutual has penned a new chapter, merging with Woodville Mutual, and rebranding as 1859 Mutual. For a glimpse into the next pages of our story, you’re invited to continue the journey with us at our new website. https://1859mutual.com

As important as insurance is, the complexity of the industry means that there are also many misconceptions associated with it. Debunking some common misconceptions can help you move forward with confidence in selecting coverage for your property.

1. You Don’t Need Property Coverage

When buying a property, mortgage lenders will often require that you obtain insurance before they are willing to lend to you. Without insurance, you typically won’t be able to qualify for a loan.

2. You Should Get Coverage For Your Home’s Purchase Price

For homeowner’s insurance, you should actually get coverage for the home’s replacement cost. This reflects how much it would cost to rebuild the home, which can be quite different than the market value. Your agent can help you determine the right amount of coverage for this.

3. Homeowner’s Policies Cover All Your Valuables

While homeowner’s insurance does offer some protection for personal belongings, there are typically limitations or exclusions for high-value items like jewelry and art. You may need to add riders (additional coverage) to your policy for such items.

4. Homeowner’s Insurance Covers All Natural Disasters

Standard policies cover fire, wind, hail, theft, and more — but not flood or earthquake damage. Flood and earthquake coverage must be purchased separately.

5. Renters Don’t Need Insurance

While a landlord is responsible for insuring a rental property, this coverage does not apply to a renter’s personal belongings. Renters should get renter’s insurance for liability protection and to cover the loss of their belongings. 

If you need help finding the right level of coverage for your property, Pike Mutual can help. Our independent agents will help you determine the level of coverage you need so you can have peace of mind.