7 Common Homeowners Insurance Myths
Are you unsure what's fact and what's fiction when it comes to homeowners insurance in Rhode Island?
You’re not alone. At The Slocum Agency, we talk to homeowners across Warwick, Providence, and Central Rhode Island every day who are unsure about what their policies actually cover. With so much information (and misinformation) circulating online, it's easy to believe myths that could end up costing you.
Whether you're a first-time buyer, a seasoned homeowner, or just comparing policies, knowing the truth can help you make better decisions.
Let’s bust some of the most common myths about homeowners insurance in Rhode Island—so you can feel confident and protected.
Myth #1: Homeowners Insurance Covers Flood Damage
Reality: It doesn't.
Standard homeowners insurance in Rhode Island typically does not cover flood damage. This is especially important to know if you live in flood-prone areas near the coastline or low-lying areas of Warwick or Providence. You’ll need a separate flood insurance policy for that protection, available through the National Flood Insurance Program (NFIP) or private carriers.
Tip: Talk to one of The Slocum Agency’s licensed agents to determine if flood insurance is right for your location.
Myth #2: The Market Value of My Home Determines My Coverage Amount
Reality: Insurance is based on rebuilding cost, not market value.
Just because your Warwick home might sell for $500,000 doesn’t mean you need $500,000 in coverage. Homeowners insurance is designed to cover the cost of rebuilding your home if it’s damaged or destroyed, which can vary dramatically from its real estate market value.
Quick Fact: Factors like materials, labor, and local building codes impact your home’s replacement cost.
Myth #3: Homeowners Insurance Covers All My Personal Belongings
Reality: There are coverage limits for certain items.
While your personal belongings are covered, high-value items like jewelry, fine art, collectibles, or electronics may have specific limits. If you have valuable possessions, you may need scheduled personal property coverage to fully protect them.
What to Do: Ask your Warwick insurance counselor for a home inventory checklist and guidance on additional coverage options.
Myth #4: Damage from a Sewer Backup Is Automatically Covered
Reality: Not unless you add coverage.
Many Rhode Island homeowners don’t realize that sewer and drain backups typically require a separate endorsement. If you’ve never added this to your policy, you may not be covered.
Pro Tip: Sewer backup claims are surprisingly common, especially in older homes throughout Providence and Central RI.
Myth #5: I Only Need Homeowners Insurance Because My Lender Requires It
Reality: Your home deserves protection regardless of your mortgage.
Even if you’ve paid off your mortgage, maintaining homeowners insurance is essential. Fires, theft, liability claims, and natural disasters don’t care if you own your home outright. Skipping insurance could lead to devastating financial loss.
Myth #6: My Policy Automatically Covers Home-Based Business Activities
Reality: It probably doesn’t.
Standard homeowners insurance policies usually exclude business-related equipment, liability, or inventory losses. If you run a business from home in Rhode Island, let your insurance counselor at The Slocum Agency review your needs. A business insurance policy or rider might be necessary.
Myth #7: I Don’t Need an Insurance Review If Nothing’s Changed
Reality: Regular reviews are crucial.
Even if your property hasn’t changed, carrier rates, coverage guidelines, and state regulations can shift. Annual reviews with a trusted Warwick insurance agent help ensure you're getting the most value and the right protection.
Why Local Expertise Matters
Not all Rhode Island insurance agencies are the same. At The Slocum Agency, we’ve spent over 75 years serving homeowners in Warwick, Providence, and beyond. Our team provides personalized guidance, tailored coverage options, and a local perspective that national carriers just can’t match.
Whether you need standard homeowners coverage, flood insurance, personal liability protection, or advice on specialty endorsements, we’re here to help you navigate it all.
The Bottom Line
Don’t let misinformation leave you underinsured or overpaying. If you’ve been wondering what homeowners insurance in Rhode Island really covers, it’s time to get clarity.
Contact The Slocum Agency today to schedule a free policy review or speak with one of our trusted agents. Let our Warwick-based team help you protect your home with confidence.
