There are many insurance myths floating around, and most of them have been around for years. We want to respond to these myths with clear information, so that you can make educated decisions about your insurance purchases. Innovative Insurance is here to help you better understand insurance and make educated decisions.

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 is certain coverage 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.

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 lower premium may not include replacement cost coverage on buildings and equipment.
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.
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.

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.

Myth Six

The Medical Payment portion of my 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.

Myth Seven

All my guns and jewelry are atomically 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. In addition to providing adequate coverage on your jewelry and/or guns, scheduling the items will offer a lower deductible and broadened coverage.

Myth Eight

Flood insurance is only for people who live in a high risk area.
Flood insurance is defined as any ground water coming into your home from the outside.  Flooding can happen to just about anyone (unless you live on top of a mountain).

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.

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 make a purchase, some are more expensive to insure
  • Add smoke and security alarms to your home or office
  • Ask us about the many different discounts offered by our insurers