After all the time, money, and effort put into getting a dream house, protecting it from the unexpected is worth the investment. Homeowners insurance offers financial peace of mind against disasters, theft, and other similar risks. However, there are a few misconceptions about what most policies cover. Here are several of them along with the facts.

Standard homeowners insurance plans don’t always cover certain possessions, including musical instruments, antiques, and art pieces. Most people purchase additional coverage to protect these higher-end items from damage or theft.

Natural floods caused by storms and nearby waterways are not covered under homeowners insurance and requires a separate policy for this type of protection. In fact, if a house is located in a designated flood zone, the lender may require coverage if they are financing the home.

This is a common myth. If a bank or other lender is financing the home, they will require the borrower to have homeowners insurance. Since the lender technically owns the house until it is paid in full, they want to protect their investment from any damages.

Most homeowners insurance plans will pay for the medical expenses of guests who are injured on the policyholder's property. However, the coverage does not extend to the policyholder or their family members.