…but there are a few things you need to understand about your policy so you don’t get burned financially.
Did you know that your insurance policy doesn’t cover everything?
Many mistakenly believe that it does, and some receive a rude awakening after a claim occurs and the insurance company issues a denial of coverage.
The absolute worst possible time to find out something isn’t covered is after the claim happens. Yet this happens on a regular basis to those who do not take time to investigate what is covered and what isn’t.
A survey was completed by the National Association of Insurance Commissioners and they found:
33 percent of U.S. heads of household, who own a home and have homeowners insurance, incorrectly believe flood damages would be covered by a standard homeowners or property and liability policy.
68 percent think vehicles such as cars, boats and motorcycles stolen from or damaged on their property are covered.
51 percent think damages from a break in the water line on their property supplying water to their home are covered.
35 percent think damages from earthquakes are covered.
Such misconceptions about insurance coverage often lead to anger on the part of the policyholder after experiencing a loss they thought was covered only to later have their claim rejected by the insurance company.
Whose fault is that? It’s my opinion there are two chief culprits.
It’s the insurance industry itself for not taking more time to educated their clients in easy to understand language. But it’s also consumers who buy insurance policies throw them in the drawer and dust them off only when a claim happens without bothering to read beforehand what’s covered and what’s not .