Busting the Top Three Insurance Myths

27 Apr Busting the Top Three Insurance Myths

How best to avoid surprises from your insurance.

Insurance can be a tricky business. Many consumers think it’s a straightforward process of buying financial and legal aid. Customers pay a premium in return for a wide range of coverage that pays out in certain situations. Even though it sounds simple enough, certain myths and misconceptions skew perceptions of insurance, causing confusion.

When it comes to shopping for a policy, these misunderstandings can be costly for clients.

Myth No. 1: Homeowners insurance covers me for every disaster.

While homeowners insurance is designed to protect your home from severe accidents and liability claims, every policy has its limits. Many standard home insurance policies don’t provide protection for incidents such as flooding and earthquakes. For protection from these disasters, separate policies must be obtained.

Myth No. 2: I have an umbrella policy. I’m covered for everything.

Though the intent of a personal umbrella policy is to provide an additional layer of liability protection on top of what your other personal insurance provides, there can still be coverage gaps. Umbrella insurance is never your first line of defense. It only kicks in once you’ve exhausted your coverage on your primary policy.

Myth No. 3: I don’t need to review my policy at renewal.

It’s always good to regularly review your insurance policies. As your needs and lifestyle change, your insurance policies will need to be altered. If your policy hasn’t kept with your pace of life, you could be looking at an uncovered claim. As a general rule of thumb, review your insurance annually as well as when significant life events happen (marriage, having a child, moving home, etc.)

For the financial protection that you need and deserve, as well as to obtain the answers to your misconceptions, visit the reliable professionals at KSD Insurance Agency, serving Illinois, Indiana, and Wisconsin!