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Insurance myths vs. fact and what you can do to combat them

submitted by Rick Meyers, AAA Insurance Broker/Nichole Meyers, Richboro Office, midatlantic.com/aaa.com/Agent/NicholeMeyers

Myth #1: My home insurance policy provides all the coverage I need.

Fact: Many policies do not have enough dwelling coverage to cover a complete rebuild in case of a total loss, such as a fire.

*What to do: Consult a local insurance agent – some policies offer 150% or 200% of the dwelling coverage limit to ensure adequate coverage is in place. Evaluate your dwelling limit coverage after major home repairs such as an addition or kitchen renovation.

Myth # 2: No matter the disaster, my home insurance policy covers me.

Fact: Earthquakes and floods are not covered in a standard home insurance policy.

*What to do: Consider an open peril policy, which provides coverage for all situations except those specifically excluded.

Myth #3: If my home is burglarized, my valuables are 100% covered.

Fact: There are coverage limits for valuables such as jewelry, antiques, business property and art.

*What to do: Scheduling specific valuable items can ensure you will be covered. Also, some policies offer increased limits for these items.

Myth #4: Car color affects insurance rates.

Fact: Auto insurance rates may be impacted by multiple factors. The color of your car is not one of them.

*What to do: Go ahead and pick red!

Myth #5: My stay-at-home spouse does not need life insurance.

Fact: Proceeds from a life insurance policy can cover expenses such as childcare or other important household responsibilities.

*What to do: Term life insurance is a fairly inexpensive option to choose to cover a set period of time. Whole life may be suitable and may act as a savings account that is tax deferred.

Speak to an insurance professional to ensure your specific needs are covered and do not be fooled by these common myths.