It’s easy to get incorrect ideas about your insurance. Luckily, you can always go to your trusted insurance adviser to help you correct your insurance misconceptions. Let’s debunk?several common misunderstandings:
Misconception: My home is not really found in a flood zone, so floods will not be a danger and I do not need flood insurance.
Even in the event your home is not found in a high-hazard flood zone, you are in peril. Hurricanes, winter storms, and snow melt are routine and in most cases overlooked factors that cause flooding. New land development can increase flood risk, particularly if the construction changes natural runoff paths. Nearly A quarter of all flood claims originate from moderate to low flood risk areas.
Though you might not have to hold flood coverage determined by your geographic location, this is certainly still important coverage to increase your policy. Remember, standard homeowners and renters insurance policies will not pay for flood damage, so you will need to discuss this coverage in your agent so that you can add it to your policy.
Misconception: The property value home has declined with recent market fluctuations, thus i will be able to lower my insurance coverage to cut costs.
The valuation of your insurance protection really should be good cost to rebuild your house rather than the market or tax value of your home. The goal of the homeowners policy is usually to rebuild your home and replace its contents in the instance of an overall total loss, therefore, the policy value must be in accordance with actual rebuilding and replacement costs rather then perceived market value.
How will you figure out how much coverage you would like? Your agent has access to tools that will assist estimate the rebuilding costs of your home. Your assistance in maintaining a definative home inventory will help out with ensuring your policy is adequate to suit your needs.
Misconception: I added my boat to my homeowners policy, I don’t need any other coverage to guard this asset and my liability.
While it is really possible and simple to convey a boat or personal watercraft for a homeowners policy, the life insurance policy option is limited. A different watercraft insurance coverage provides more in-depth coverage, for example the following options:
- Uninsured/underinsured watercraft bodily injury
- Fuel spill liability and wreckage removal
- Personal effects
- Unattached equipment coverage
- Emergency assistance