You hear a lot about insurance these days, especially here in Florida. At Sun Insurance Services we pride ourselves not solely on best pricing, or even our shining customer service. One of our primary goals is to be an advocate for our clients. And that means we need to help educate you about your risks and protection. We take it very seriously. There are many insurance myths floating around. A lot of them have been around for years. We want to respond to these myths with clear insurance information, so that you can make educated decisions about your insurance purchases. It’s important to us that you have the proper coverage at a fair price and that you get the level of service you deserve.
10 Insurance Myths that you need to consider:
Insurance Myth One
Having two agents is better because they keep each other competitive.
Having two agents duplicates effort and can create coverage gaps and/or duplications. For example, there are certain coverage’s that can be included under a liability policy as well as under an auto policy. If you have two agents, who coordinates coverage? One agent is better able to manage your entire insurance program. One stop shopping is also a more efficient use of your time. We offer insurance that will fit all of your needs from personal to business, health, and life.
Insurance Myth Two
The lowest premium is the best option.
Premiums are determined by a combination of exposures and coverage. If you select the lowest premium you may be missing needed coverage. For example, the lowest premium may not include replacement cost coverage on buildings and equipment. That would mean using yesterday’s costs to build/buy something brand new. A considerable difference that would mean out-of-pocket costs to you.
Insurance Myth Three
Buying from a national company is always better.
Don’t be mislead by entertaining advertising. Most national agents only represent one insurance company. They can’t shop your account to determine the best combination of price and coverage. And remember that advocate? You’re not likely to find it in this scenario…
Insurance Myth Four
The internet is a great place to get good insurance deals.
Low cost internet insurance may allow you to select the coverage and limits you think you need, but in most cases you end up with a limited and inadequate program. Typically, you may only realize these limitations after you have an uninsured claim. It’s too late after an insurance event to make changes. You get what you pay for.
Insurance Myth Five
Umbrella insurance is only for high net worth companies or individuals.
A small electrical contractor was at fault for the total loss of a historic property; a loss that exceeded his general liability policy. The contractor’s umbrella policy paid the loss in excess of $7,000,000. Umbrella or excess coverage is some of the least costly insurance you can buy. Don’t risk a big loss for a small expense.
Insurance Myth Six
The Medical Payment portion of my FL homeowners insurance will cover injuries to me and my family.
Medical Payments, is a feature of most standard home insurance policies. It is there to protect you in the event that someone other than you or your family (a neighbor, friend, etc.) gets hurt on your property.
Insurance Myth Seven
All my guns and jewelry are automatically covered in my homeowner’s policy.
There are limits on the amount of coverage you can receive for valuables such as jewelry, guns, furs, etc. For example, most companies put a cap of $1,500 on total jewelry lost during a burglary of your home. If you find that your jewelry is valued over $1,500, you will have to schedule it separately.
Insurance Myth Eight
Flood insurance is only for people who live in a high risk area.
The only people who may not need flood insurance are those who live on top of a mountain. Flood and rising water can affect almost everyone.
Insurance Myth Nine
I don’t need disability insurance because I can get Social Security.
Don’t count on Social Security to take care of all your needs if you become disabled. If you are able to get Social Security benefits for your disability (not all get approved to receive disability benefits so don’t assume you will) then you will still have to wait months before you receive benefits. Also, your disability needs to be long-term to qualify for these benefits.
Insurance Myth Ten
There isn’t anything I can do to manage my insurance costs except shop price.
There are many things you can do to reduce your premiums; here are a few:
• Consider increasing your deductibles
• Maintain good credit
• Consider the vehicle when you make a purchase, some are more expensive to insure
• Consider the home when making a purchase also, some are more expensive/difficult to insure
• Add smoke and security alarms to your home or office
• Ask us about the many different discounts offered by our insurers
Did you see any of these insurance myths that might affect you? Contact us here at Sun Insurance Services today for advice on a new policy, or a second opinion on any of your existing policies. It’s important to us that you have the proper coverage at a fair price and that you get the level of service you deserve. We revolve around you!
Sun Insurance Services is an Orlando Florida based independent insurance agency serving all of the Sunshine state. If we can help you with any of your FL insurance needs, please contact us today!