If you have ever tried to file an insurance claim and received a notice of rejection from the provider, you know all too well how disappointing and financially burdening it can be. Understanding what is and is not covered under insurance policies can help ensure that you are protected in all of life’s unexpected disasters.
To help you sort the facts from the fiction, here are the top six misconceptions in regards to different types of insurance coverage.
1.You should always contact your insurer about each issue that arises. This is true to an extent. Remember that each time you file a claim, your premiums could go up. If the cost of repairing the damage is limited, consider paying for the repairs out of your pocket to avoid rising premiums.
2.Your car insurance will cover the cost of a rental car if your car is damaged in an accident. This is not true unless you have added rental car reimbursement coverage to your insurance policy. Without the additional coverage, you will not be receiving any rental car allowance.
3.Everyone needs to have some kind of life insurance. This is not true. If you have little to no income and you do not have any dependents, it is possible that life insurance is not a necessary expense for you.
4.An insurance adjuster’s job is to ensure you are paid for all of the damages you are owed. Most claims adjusters are honest and upstanding people, but they do work for the company that is paying out the money on your claim. Some companies may try to pay out the smallest settlement possible to avoid losing too much money.
5.If you have homeowner’s insurance, flood damage is covered. This is false. Unless you purchase an additional flood insurance policy, nothing in your home will be covered in the event of a flood. The only water damage covered under a homeowner’s insurance policy is water from within the home. Water damage caused by a broken water line, leaky roof (as long as it was not caused by neglect of the roof), or appliance malfunctions will likely be covered.
6.Social Security Disability Insurance will cover any type of disability. False—not every medical disability is covered under disability insurance. Using the eligibility tool or talking with the customer service associates at the Social Security office is the best way to learn if a disability is covered under the program.
Finding the truth behind all of the misconceptions can help ensure that you are protected when you need it most. Avoid the unpleasant surprises of learning you are not covered during your time of need by educating yourself about the insurance coverage you carry. If you are looking for insurance, contact a group like Central Insurance Agency.
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