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Client Watch: Insurance coverage myths worth figuring out as you renew your coverage

With my household’s insurance coverage renewals developing, I’ve spent the previous couple of months testing house and auto protection from totally different corporations. Curiously sufficient, my analysis factors out some myths about insurance coverage that many people may not know. For instance:

1. With all of the spring rains, flash floods, and to not overlook Easter Sunday’s devastating twister, I can not assist however consider shoppers who mistakenly imagine that householders’ insurance coverage covers any and all harm. Too many owners have taken a beating as a result of they suppose they’re protected against the teeming waters (and torn down houses). Bear in mind: the one insurance coverage that covers “floods” is FLOOD insurance coverage.

2. Simply since you’ve paid your householders coverage in full would not routinely imply you are lined when one thing occurs to your own home. Exclusions, particular situations, and different limitations may influence what you’ll get in the event you incur a loss. Verify usually along with your agent to evaluation your coverage to make sure you have the correct one primarily based upon your wants and what’s inside your pockets.

3. Even assuming one buys “full protection,” this misnomer actually does not imply every part’s lined. To begin with, there isn’t any such animal as “full protection” and, in truth, most states mandate solely legal responsibility insurance coverage. Make sure you choose solely the protection you want and might afford.

4. Pondering sure automotive colours improve premiums is one other mistake individuals make. That cherry pink automobile will not make your funds rise (though if going over the velocity restrict, you and ‘ole Cherry Crimson may be extra more likely to get a ticket than Granny Girtie driving her ’96 Chevy); nevertheless, sure different components will. The auto’s 12 months, the make and model, miles pushed per 12 months, the motive force’s age, driving report, and credit score historical past are all components contributing to a price improve, as are different individuals additionally named on the coverage.

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5. Simply because policyholders personal an older automotive does not imply we do not want complete protection. Today, many thieves goal much less new automobiles; not solely are they simpler to steal however, moreover, a robust market exists for older elements.

6. An excellent life insurance coverage plan at work does not imply you should not buy extra protection. In spite of everything, if people go away their jobs, chances are high they will not have the ability to take the protection with them. It would not harm to speak to a licensed life insurance coverage skilled about shopping for your individual coverage, corresponding to reasonably priced time period life and, significantly, in the event you nonetheless have youngsters at house to be cared for and educated.

7. Medical insurance will not essentially cowl all bills. In spite of everything, even one of the best insurance policies imply copays and deductibles. That is the place a supplemental coverage would possibly turn out to be useful, particularly for most cancers, unintentional damage, and so forth. Following a nasty accident a number of summers in the past (and on the expense of three weeks within the hospital, three months of outpatient rehab, and many ache in restoration), I obtained a test for $8500 that lined any medical bills past what medical health insurance encompassed. In actual fact, I pocketed sufficient bonus bucks to purchase a brand-new iPad for my husband and one for me!

Contact Ellen Phillips at consumerwatch@timesfreepress.com

Oliver Smith

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