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In today’s world it can be hard to separate the fiction from the reality. Especially when it comes to what’s covered in your insurance policy. Which leaves us asking the question: How much do you know about your coverage? Here at Doyle & Ogden we’ve come up with at least five myths related to your insurance coverage that just aren’t true.

Myth #1: Red Cars Pay More for Car Insurance
To give you a sense of how concerned people are about this topic, try typing “do red cars…” into your Google search bar. The very first result is “do red cars cost more to insure?” Lucky for you, the answer is “no.”

Although your vehicle may be easier to spot coming down the road than a color that’s less flashy, your vehicle color will never affect your insurance coverage. We will, however, ask you a couple of questions about your car, such as the make, model, mileage, engine size, and age. But your car can be cherry red or canary yellow, and your policy will protect you just the same.

Myth #2: Home Insurance Pays for Any/All Natural Disaster Damage
Our hope is that for those of you reading this, you didn’t have to learn this lesson the hard way. What many people don’t realize is that every homeowner’s insurance policy is different, and the amount of coverage varies. It’s important that you go through your policy with your agent to better understand the ins and outs of what is (and isn’t) covered. In most cases, some disasters and their damage are covered, like the fallen limbs of trees after a tornado. But often, coverage for disasters like floods and earthquakes are not. Be proactive about understanding your insurance so that you’re prepared before disaster strikes.

Myth #3: Everything In Your Home Is Covered By Your Homeowners Policy
This is another part of your coverage that can get murky, and is something you’ll need to clarify by digging into your policy. Yes, normally the items in your house are covered if stolen or damaged, but the question is not if it’s covered, but how the cost of each item is covered. Most plans will cover up to a certain percentage (often 50% to 70% of the structure of your home) or a set dollar amount. For some items, like family heirlooms such as art or jewelry, that kind of coverage is not enough.

The best thing for you to do to make sure that you have enough coverage is to take a home inventory checklist. Note the items in your home of value and how much they cost, then take some time to sit down with your insurance agent and analyze what your policy would replace. From there, you and your agent can work together to increase or decrease your coverage to fit your needs.

Myth #4: You’re Not Legally Responsible For A Trespasser
When you first hear this, your logical reaction is “of course I’m not liable, they broke into my house, they’re the ones who should be in trouble!” Unfortunately, that’s not the case. Often if a trespasser is not caught, you will never hear boo from them again. However, if the trespasser is somehow harmed while robbing your house, they may file a civil suit against you for damages. If any item in your home injures the trespasser, the trespasser has the right to file a suit, arguing that the harm was intentional.

Myth #5: Insurers Make Money When Claims Are Denied
We need to set the record straight on this one because it’s a common misconception that we hear. Insurance agents do not make money when customers’ claims are denied. When claims are made, insurance companies will want documentation of what occurred in detail to avoid paying on invalid or fraudulent claims. (Unfortunately, those types of claims happen more often than you think.) Insurance agencies don’t benefit when they have to deny a claim, in fact that’s something an agent never wants to do.

We hope one or two of these myths offered some updated information on some common misconceptions about what your insurance can and can’t do. After seeing this list, the biggest takeaway should be: go through your policies. If you don’t have one, or you know you need an upgrade, give the experts at Doyle & Ogden a call! We’ll sit down with you and discuss your policy, walk through the pros and cons, and explore your options. You can reach us at 616-949-9000 or request a free quote online today!

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