Insurance is a tricky business. Many customers think it is a straightforward procedure of buying financial and legal aid. Customers pay a premium, sometimes have to pay a set deductible, and the insurer pays out in certain situations. Even though it sounds simple enough, there are certain misconceptions and even myths surrounding the insurance industry. You may have heard these misconceptions about insurance in Antioch buzzing around California.
When shopping for a policy, those misunderstandings can be costly for clients. Read on for common myths and the facts!
Myth No. 1: Buy insurance for a home based on the real estate market value. ¨
Truth: Coverage should be bought based on the costs to reconstruct the home from scratch. In many areas of the country, rebuilding costs are quite different from real estate market value. In areas with a weak housing market, it might cost more to rebuild your house than for what you could sell it.
Myth No. 2: Comprehensive auto insurance covers everything.
Truth: Comprehensive coverage pays only for certain problems such as car theft, storm damage, animal collisions, and vandalism. Collision coverage helps to pay for car accidents. Only an all-encompassing auto insurance policy can cover your immediate risks.
Myth No. 4: Umbrella insurance covers everything.
Truth: Umbrella insurance is designed to add on to your existing policies, such as auto and home, to protect you in the event of liability issues. As extra liability protection, it picks up where your current policies leave off. Note that a personal umbrella policy won't cover your business's liability issues and vise vera.
Myth No. 5: I don't need life insurance.
While life insurance isn't for everyone, it is certainly needed for most people. Unless you have no dependents relying on you for financial aid, and can pass on without any debt, you will need to secure some sort of life insurance.
Stumped on where to start to secure the right insurance? Contact the insurance professionals Jack Stone Insurance Agency to secure a quality insurance policy to suit your needs, budget, and lifestyle! Serving Antioch, Brentwood, and neighboring cities of California, visit us to get started.
