Insurance – everyone needs it, most people have it, but many don’t understand it. Plenty of misinformation and myths are out there about auto, homeowner’s, and health insurance, and bad information can cost you money. Let’s clear some of the more common insurance myths for you.
INSURANCE MYTH #1
Your homeowner’s insurance should use the real estate market value of your home to determine coverage limits. Truth: Your coverage total should be based on the total actual cost to rebuild your home including materials and labor.
INSURANCE MYTH #2
A standard homeowner’s insurance policy covers mold damage. Truth: Mold damage isn’t covered at all, although if water floods your home due to broken pipes and other problems (not caused by natural disasters), the water damage may be covered (before it becomes a mold problem).
INSURANCE MYTH #3
Personal items stolen from your car can’t be claimed under your homeowner’s insurance. Truth: Report the theft to the police and then talk to your insurance agent about filing a claim. Think about the value of the items. Inexpensive items may not be worth it.
INSURANCE MYTH #4
Cars painted in certain colors, like red, cost more to insure. Truth: Color doesn’t determine your auto insurance rate.
INSURANCE MYTH #5
Insurance for small, economy cars are the least expensive policies. Truth: Minivans and small to mid-size SUVs are often the least expensive to insure.
INSURANCE MYTH #6
When you have comprehensive coverage, your car is completely covered from any type of damage. Truth: Comprehensive coverage only protects you in very specific situations like collisions with animals, vandalism, storm damage, and car theft.
INSURANCE MYTH #7
Your insurance company can and will cancel your policy immediately if you get into a big enough accident. Truth: An insurance company cannot cancel your existing policy until the end of the policy period.
INSURANCE MYTH #8
If someone else drives your car and wrecks it, their insurance will cover the damage. Truth: It’s your car so your insurance will handle the claim. The insurance follows the vehicle, not the driver.
INSURANCE MYTH #9
Thanks to the Affordable Care Act, you’re required by law to use your employer’s health insurance plan. Truth: The law doesn’t specify where your insurance comes from, only that you have health insurance.
Misinformation about your insurance policies can cost you time and money. The cost for mold remediation alone can run into the tens of thousands of dollars. Learn more about your insurance and save yourself the hassle of finding out the hard way that something isn’t covered or costs more to insure.
If you’ve got questions about what your current policy covers – and what it doesn’t, or if you’d like a new quote for a new insurance policy, contact us here at Charlotte Insurance. We’re here to help you understand your coverage!