Top 5 Home Insurance Myths Burlington Homeowners Should Stop Believing
When it comes to protecting your property and personal belongings, home insurance in Burlington plays a vital role. Yet, despite its importance, many homeowners still fall victim to common misconceptions that can lead to underinsurance, unnecessary expenses, or costly surprises when filing a claim. Whether you’re a first-time buyer or have lived in your home for years, it’s time to debunk the most persistent myths that surround home insurance.
Let’s break down the top five home insurance myths Burlington homeowners should stop believing—and provide the facts that can save you time, money, and stress.
Myth #1: Home Insurance Covers Everything Inside and Outside Your Home
One of the biggest misconceptions homeowners in Burlington have is assuming that their insurance policy will automatically cover every single item in and around the home—no questions asked.
The Truth: Coverage Limits and Exclusions Exist
Standard home insurance in Burlington typically includes coverage for the dwelling (your home structure), personal property (contents), liability protection, and additional living expenses if you’re temporarily displaced. However, there are always limits and exclusions.
For example:
- High-value items like jewelry, artwork, or collectibles may have sub-limits unless specifically scheduled.
- Fences, detached garages, and sheds might be covered—but only up to a certain percentage of your dwelling coverage.
- Pools and trampolines could increase your liability risk and might require additional coverage or even be excluded.
If you want to ensure full protection, you may need to add endorsements or “riders” to your policy.
Tip: Make an inventory of your belongings and speak to your insurer about what’s fully covered and what’s not. This also applies to bundled policies, such as auto insurance in Burlington, where add-ons may enhance your protection.
Myth #2: Flood Damage Is Always Covered by Standard Home Insurance
With Burlington’s proximity to Lake Ontario and its unpredictable weather patterns, water damage is a common concern. Yet many homeowners believe that all forms of water-related damage are automatically included in their policy.
The Truth: Flood Coverage Requires Special Add-ons
Most standard home insurance in Burlington policies do not include overland water or sewer backup coverage. Overland water coverage protects against flooding from heavy rain or river overflow, while sewer backup covers damage from a backed-up drain or sewer line.
Given the increasing frequency of extreme weather in Ontario, many insurers now offer these as optional endorsements—but you have to ask for them.
Tip: Review your home’s location and flood risk, especially if you live in low-lying or older areas of Burlington, and talk to your provider about water damage endorsements.
Myth #3: Market Value and Rebuild Cost Are the Same
Many homeowners assume that the value of their home is equal to what it would sell for on the real estate market—and thus that’s how much insurance they need.
The Truth: Insurance Covers Rebuild Costs, Not Market Value
Home insurance in Burlington covers the cost of rebuilding your home—not its resale or market value. This includes materials, labor, and local construction costs. These can fluctuate, especially with inflation or supply chain disruptions, and often differ from your home’s listing price.
For example, a small older home in a trendy Burlington neighborhood may have a high market value due to location, but the cost to rebuild could be significantly lower—or higher, if building codes have changed.
Tip: Make sure your insurance policy reflects accurate rebuild costs, not just what your real estate agent says your home is worth. An insurance assessor can help determine this more precisely.
Myth #4: My Insurance Premium Won’t Change If I Don’t Make Claims
Some homeowners assume that if they’re loyal to one insurance provider and don’t file claims, their premiums will remain steady year after year.
The Truth: External Factors Can Still Influence Your Premiums
Even if you’ve never filed a claim, you may still see rate changes due to:
- Rising local claim rates (e.g., increased storm damage in Burlington)
- Property upgrades or renovations
- Inflation in construction costs
- Credit score changes (in provinces where this is allowed)
- Your choice to bundle home insurance in Burlington with auto insurance in Burlington, which may impact your overall premium if one of the two changes
While a claim-free record may earn you a discount, it doesn’t lock in your rates.
Tip: Reassess your policy annually and explore bundling options. Many providers offer generous discounts for combining home and auto insurance in Burlington, which can offset rate increases.
Myth #5: Bundling Home and Auto Insurance Doesn’t Save Much
Many Burlington residents still believe that bundling their insurance products—especially home and auto insurance in Burlington—won’t make a significant difference in cost or coverage.
The Truth: Bundling Can Provide Substantial Savings and Convenience
In reality, bundling your policies can:
- Save you anywhere from 10% to 25% on premiums
- Simplify billing (one provider, one bill)
- Create smoother claims processing (especially after natural disasters affecting both home and car)
- Improve customer service with a single point of contact
Beyond the cost savings, bundling also helps you develop a more comprehensive insurance strategy, ensuring both home and vehicle are adequately protected.
Tip: If your current provider doesn’t offer bundling discounts, consider shopping around. Many insurers in Burlington will match or beat competitor quotes for bundled policies.
Bonus Myth: Home Insurance Isn’t Necessary If You’ve Paid Off Your Mortgage
Some homeowners believe that once they’ve paid off their mortgage, home insurance becomes optional.
The Truth: Going Without Insurance Is a Risky Gamble
While home insurance may no longer be legally required without a mortgage, it’s still crucial. A single fire, theft, or liability lawsuit could wipe out your savings or leave you without a place to live.
You’ve worked hard to own your home—why not protect that investment?
Conclusion: Knowledge Is the Key to Better Coverage
Understanding the truth behind these myths is the first step in choosing the best home insurance in Burlington for your needs. Whether you’re guarding against weather events, property damage, or personal liability, the right policy—combined with smart planning—can offer invaluable peace of mind.
And don’t forget: Bundling with auto insurance in Burlington isn’t just a convenience—it’s a strategic move that can result in major savings and streamlined coverage.
So, take the time to review your current policy, ask the right questions, and consult with a trusted insurance professional. By busting these myths and focusing on facts, you’ll be well on your way to securing your home, your finances, and your future.