1. THERE IS A 30 DAY GRACE PERIOD WHEN YOUR INSURANCE LAPSES.
If an insurance company gives you a cancellation date, you no longer
have insurance past that date if the premium is not paid.
2. HOME OWNERS INSURANCE ALWAYS PROVIDES FLOOD AND EARTHQUAKE COVERAGE.
TRUTH: In order to have coverage for flood or earthquake, you need to purchase additional insurance.
3. PERSONAL AUTO INSURANCE COVERS YOU WHEN YOU USE YOUR CAR FOR PAID DELIVERIES (i.e. pizza delivery).
If you are getting paid to make deliveries of any kind, your personal
auto insurance does not cover you in the case of an accident.
4. REPLACEMENT COST OF YOUR HOME IS THE SAME AS THE MARKET VALUE.
TRUTH: Replacement cost should represent the amount it would take to rebuild your home, not to sell or assess for taxes.
5. YOUR AUTOMOBILE INSURANCE COVERS YOU, NO MATTER WHAT CAR YOU ARE DRIVING.
TRUTH: automobile insurance is on the vehicle, not the driver.
6. IF YOU BUY A NEW VEHICLE, YOU AUTOMATICALLY HAVE FULL COVERAGE ON YOUR NEW VEHICLE.
TRUTH: Your new vehicle will have the same coverage as your old vehicle, until you notify your agent with changes.
7. PHYSICAL DAMAGE COVERAGE ON YOUR VEHICLE EXTENDS TO A RENTAL TRUCK AND/OR A RENTAL MOTORHOME.
TRUTH: Physical damage coverage is only extended to a rented private passenger vehicle.
8. WATER DAMAGE IS ALWAYS COVERED ON A HOMEOWNERS POLICY.
TRUTH: Repair of damage caused by water varies. It depends on where the water comes from and what endorsement the policy has.
9. HOMEOWNERS INSURANCE COVERS MY PERSONAL PROPERTY FOR ANY TYPE OF DAMAGE.
Personal property is only covered for certain types of damage or
losses, and certain property will have limited theft coverage (see Misconception #12). Typical covered losses are fire, lightning, windstorm, hail,
explosion, riot, civil commotion, aircraft, vehicles, smoke, vandalism,
theft, falling objects, weight of ice, snow, sleet, and freezing.
10. COMMERCIAL LIABILITY INSURANCE PROVIDES COVERAGE FOR YOUR EMPLOYEES WHEN THEY ARE INJURED ON THE JOB.
TRUTH: Only Workers Compensation covers an employee who is injured on the job.
11. A PERSONAL UMBRELLA POLICY WILL PROVIDE COVERAGE FOR YOUR BUSINESS.
TRUTH: Business insurance is required for business coverage.
12. IF MY JEWELRY IS STOLEN, MY HOMEOWNERS POLICY WILL COVER REPLACING IT.
TRUTH: A regular home owners policy will only cover jewelry up to $1,000.00 when the item(s) is/are stolen.