In the 20+ years that I have been in insurance, I have come across several misconceptions that my clients have regarding their insurance coverage. Take a look below - do you fall into any of these categories?
Misconception 1: “I don’t live in a flood zone, so I don’t need flood insurance.”
According to the Federal Emergency Management Agency (FEMA), flooding is the number one natural disaster in the country. If a homeowner lives in a high-hazard flood zone and has a mortgage, the homeowner is required to carry flood insurance. Other areas are considered moderate-to-low hazard flood zones. Most homes in these areas are not required to carry flood insurance, however, FEMA reports that nearly 25 percent of all flood claims come from moderate to low flood risk areas. You should understand that homeowners policies do not cover flood damage, but flood insurance is available in most communities.
Misconception 2: “My home value has declined, so I should be able to lower my limits to help save money.”
In some areas of the country, property values have been hurt. Some consumers are considering reducing policy limits as a way to save on homeowners insurance. While there are options for reducing homeowner premiums, it’s important to know the need to maintain coverage levels that match their exposure.
Misconception 3: “Adding my boat to my homeowners policy will provide adequate protection while I’m out on the water.”
While customers may find it easy to include their boat on their homeowners policy, it is important for boaters to understand the extent of coverage afforded, as well as the additional options available on a separate watercraft policy. For example, adding a boat to a homeowners policy does not add water sport liability, motor damage, towing expenses should their motor quit, or coverage for ice and freezing.
Even if their vessel was not a significant expense, boaters should consider where they will keep the boat, how and where it will be used, and how they may be exposed to different risks.
Misconception 4: “The gap insurance offered by my car dealer was a waste of money.”
Many consumers who either purchased a new car or who are shopping for one may not contemplate the need for additional insurance coverage for their vehicle. In fact, those who finance a new car don’t always consider getting gap insurance on their own or when it’s offered at the dealership. While loan or lease gap coverage can provide added protection for clients who purchase a new vehicle, buying the coverage from the dealership is typically more expensive than asking an insurance provider directly.
If you have any questions on these common insurance misconceptions, please give us a call - we'd love to explain in detail how to ensure your maximum coverage! Call us today at 281.998.2500!
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