Thanks to the Internet, consumers have access to more information than ever before and can do a substantial amount of research before making a purchase or a financial commitment. However, many consumers still believe common misconceptions or are confused by common myths, especially regarding Personal Insurance. As a result, they might not have the right kind of policies for their needs, or be underinsured if disaster strikes.
The focus of today's Aegis blog post is to highlight common Personal Insurance myths and offer correct information so consumers fully understand their policy and coverage needs.
Homeowners Insurance Covers Everything
One of the most common misconceptions regarding Personal Insurance policies is the belief that a simple Homeowners Insurance policy covers all damages, losses, and catastrophic events. While Homeowners Insurance can offer a great deal of coverage for homeowners, it does not cover all events and typically has many exclusions and coverage limits.
For example, a typical Homeowners Policy might offer $50,000 for personal property inside the home, but a sub-limit for antiques, jewelry, or artwork reimbursement. If homeowners have more valuable possessions, then an endorsement or personal property rider should be added to ensure that high-value items are fully covered in the event of a theft or loss.
Collision Auto Insurance Covers All Damages
Auto Insurance is another category of Personal Insurance with a lot of myths and misconceptions regarding policy coverages. For example, some insured drivers might be under the impression that having Collision Insurance alone is enough to cover all their insurance needs, especially for older vehicles that have already been paid off.
What drivers often fail to notice until it's too late is that Collision coverage does not cover such common incidents such as weather damage, vandalism, or even theft. As a result, drivers who find their cars broken into overnight, vandalized by criminals, or damaged by hail will end up paying for repairs out of pocket. In order for these kinds of damages and losses to be covered by insurance, drivers need to also have Comprehensive auto insurance coverage.
You Don't Need Flood Insurance
Finally, the biggest mistake insurance customers can make is not having Flood Insurance, especially in flood-prone cities like Houston or Galveston. Homeowners and Renters are often surprised to discover too late that their Homeowners and Renters Insurance does not cover any flood damage related to heavy rainfall or hurricanes, so their damages and losses are all out-of-pocket costs. For renters, many mistakenly assume that their landlords or rental property managers will cover flood damages or losses, only to discover that none of their damaged personal property is covered.
In order to protect personal property and structures from flood damage, homeowners and renters need Flood Insurance policies, which are separate from their Homeowners or Renters policies. This policy is especially important for homes or rental properties located in or near flood zones, especially as our region continues to experience more severe weather events.
Aegis Insurance & Financial Services is committed to helping Personal Insurance customers fully understand all facets of their current coverage, identify potential gaps in coverage, and explain new laws or changes that could impact their policies. For more information about our full line of Personal Insurance policies, contact Aegis today at 713-850-7622 or fill out our online form to request a free quote!