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Debunking the Most Common Myths about Insurance – Part 2

22 Jun by 5280 Insurance

As we left off in our first part about the five common insurance misconceptions, you now have a better grasp of insurance and find yourself a well-matched service. 

In the second part of this series, let’s continue to debunk another five common myths about insurance:

1. Flood Insurance Is Exclusive for Those Who Live in High-Risk Areas

This is a common myth about insurance that is not entirely correct. Flood insurance covers properties located in areas at high risk for flooding. However, a property CAN be covered by flood insurance if the property is situated in a lower-risk area.

Flood Insurance is vital for everyone. Even if flooding doesn’t happen in the place you live in, flooding can occur at any time due to sudden rains or snow. You should keep in mind that not only water damage can be caused by flooding, but you can also face the risk of having your home flooding with sewage or other toxins.

2. Disability Insurance Is Unnecessary

This is also a common myth about insurance. The risk of becoming disabled is not a number that is high enough for people to feel that having disability insurance is necessary. However, a disability can happen to anyone at any time.

Disability insurance provides income coverage. Even if you have no income, it will compensate you if you cannot work due to an illness or injury. This is why it’s typically a part of a case dealing with wrokplace injuries or a similar dilemma.

People who have disability insurance will be able to pay their bills and will not need the help of family or friends. You can also utilize income protection to focus on your health and rehabilitation after an illness or injury.

3. Home Insurance Does Not Cover Sеrviсеs

A common myth about insurance is that the services you receive from an outside contractor are not covered by home insurance. This is not entirely true.

Buying a home insurance policy is essential because it covers all your belongings. However, people have decided to take out separate policies to protect their specific possessions in some cases.

Services you receive from a contractor are not covered if performed on a temporary and non-permanent basis. Suppose a contractor served a permanent and regular service, such as installing a complete kitchen or bathroom. In that case, the service is covered by your insurance policy.

4. Іnsurance аnd Hоmeowners Insurance Are the Same

A common myth about insurance is that home insurance is the same as the insurance policy have to have a mortgage. They are not the same premiums.

Homeowners insurance is designed to provide coverage for your house and its structure. It also covers liability and additional living expenses if you temporarily move out because of permanent damage to your home.

5. Yоu Саn Pay Cash fоr Insurance

Another common myth about insurance is that you do not have to pay for your insurance in installments. You should pay for your insurance policy in installments because you will not be covered if you do not.

You can pay for damages you cause to a third party. However, you must pay for the insurance policy in advance and make monthly payments to have the insurance policy.

Conclusion

As you can see, insurance myths may be deceptive because few people understand insurance in the first place. To offer the most significant possible safety for your home and family, you must be completely aware of the falsehoods that may lead you astray.

When shopping for insurance coverage, keep all of the misconceptions you have read in this article in mind. Doing so will help you make a better decision for your future.

Are you in search of an insurance company in Englewood? Look no further than 5280 Insurance. We commit to providing you and your family with protection and peace of mind for everything you need to cover and those things you didn’t realize you needed. Contact us now to determine the best coverage for your specific requirements. 

Don’t miss out on the first part of this article and find out the initial set of myths about insurance!

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