Insurance Misconceptions Which Could Cost You

Insurance Misconceptions Which Could Cost You

There are a lot of assumptions about insurance out in the real world, and most–if not all–of them could cost you dearly. 

Most of us dread the idea of having to deal with insurance–whether it be auto, home, umbrella, or what have you. And as independent agents, we understand the confusion that most people have regarding insurance and we are here to set the record straight. Believing in such misconceptions could cost you dearly when the time to file a claim comes knocking. Here are a few misconceptions that could put you in financial risk that you should definitely know about.

  1. “I bought the right amount of coverage the first time.” 
    You may have bought the right amount of insurance the first time around, and we congratulate you for that. But life changes and with that, your insurance policy should evolve alongside with it (a process that biologists call “co-evolution”). If you refurbished your home, got a new car, or started a new family, take a look at your policies and consider increasing your coverage amount.
  2. “My umbrella insurance covers me for everything.”
    Even though the umbrella insurance policy does cover a lot of things that your home and auto do not, it is still not impermeable to all accidents.
    • Business-related accidents are typically not covered under a general umbrella insurance policy.
    • Umbrella insurance is like reinforcement that won’t go into effect once a certain amount has been paid, typically these funds come from your other forms of liability.
    • It does not cover your injuries/losses as it only deals with other people’s injuries/losses that you caused.

When it comes to something as important as insurance, you should not be in the dark about your policies. For all of your insurance needs in Dallas and surrounding areas in Texas, visit the professionals at North American Advantage Insurance Services.