Got Insurance? Many are not insured when they think they are

Insurance MisconceptionsSummer is almost here. This means it’s time for consumers to re-evaluate their insurance coverage. Too often people believe they are covered for anything, just because they have insurance. This is why it’s not only important to know what kind of insurance you have; but to understand what it covers as well.

In the recent economy people have noticed their homes have lost property value; some homeowner’s think they can lower their coverage and save some money. It’s important to understand that a lower property or market value doesn’t affect the cost to rebuild or repair the home if you have to claim a loss. Check into other ways to reduce your rates, like multiple car discounts or having all policies with the same carrier.

Many homeowners’ also believe that their homeowner policy will cover flood damage. People who live in high risk areas for flooding have to have flood insurance if they have a mortgage. However, there are no mandatory rules for homeowners’ in moderate or low risk areas.

According to statistics from FEMA, one quarter of all flood claims are from homeowners in low risk or moderate risk areas. As a responsible agent, this should be discussed with homeowners, so they can be aware that their regular policy won’t cover flood damage.

Thinking about buying a boat, or all ready have one? Some folks will have their boat added into their home policy; but you should know a few facts before you do it. Having a separate policy for your boat can cover towing expenses, water sport liabilities, motor damage, even fishing equipment. Adding the boat to your home policy can leave you footing the bill for the cost of any of these incidents.

A recent poll of insurance holders showed that the majority of people didn’t really know or understand what their policy covered and what it wouldn’t cover. They had a basic idea of what it was, and made assumptions about the rest. Good communication between agent and client is a key factor for good business.

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