Top 5 Insurance Myths Of The Summer
Posted by David Schneider | August 28, 2007

The main myths that surround any type of insurance have to do with coverage amounts. Too often, policyholders don’t read the fine print. They buy car insurance, homeowners insurance, health insurance or something else and think that’s all there is to it - they’re covered. When it comes time to actually using the policy, they find that their coverage is fairly limited.
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聽This summer is no different. Summertime brings a lot of things: travel, fire season, hurricane season and other potential dangers. While there’s a lot of fun in the sun, homes are at a greater risk than other times during the year. Here are five myths about how the summertime can affect your coverage.
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聽Myth No. 1: You Don’t Need Flood Insurance
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聽Certainly people are more aware of the risks of flooding than they used to be. However, a large number of homeowners don’t look to get flood insurance if they don’t live in a high-risk area. You don’t have to live on the edge of a levy to purchase flood insurance. Every homeowner who lives in a National Flood Insurance Program area is eligible for flood insurance. If your home is flooded and you aren’t protected, you will be liable for damages.
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聽Myth No. 2: Life Insurance is for the Sole Wage Earner
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聽Yes, this is a summertime problem. In summer, the kids are out of school, so a spouse who takes care of the kids is going to be working double time. While this is not paying work, it is a job that would have to be replaced if the homemaker were to die. The sole wage earner would have to pay for additional childcare, food preparation and more. So avoiding life insurance for a non-working spouse can be very risky.
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聽Myth No. 3: You Don’t Need Additional Car Insurance
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聽Summer is also the time of the summer job. If you have kids of driving age, they will likely be using the car more often: to see their friends, to go to a job, or both. It’s possible that you are not covered for an additional driver, you will be liable for damages. This is especially important if the car is used in a business capacity, rather than personal, such as a delivery job. Check with your agent to see if you’re adequately covered for additional use of a car.
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聽Myth No. 4: Travel Insurance is Not Necessary
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聽Vacations can be so expensive that travelers don’t want to add the extra expense of travel insurance. If your trip is canceled for some reason, such as illness or injury, then you won’t get any of your money back with adequate travel insurance. Don’t rest on the coverage from a credit card, as this coverage is fairly limited. Additional travel insurance is the safest bet.
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聽Myth No. 5: You Don’t Need Low Risk Insurance
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聽Being that summertime is the time of intense weather, all homeowners should be looking to get protection for weather-related problems. However, don’t just separate this by region. Just because the southwest is most susceptible to fires doesn’t mean you don’t need fire protection anywhere else in the U.S. You shouldn’t buy insurance merely based on the likelihood that something will happen. While obviously you don’t need extensive hurricane protection on the pacific coast, you still need protection from wind, rain and other issues that can hit anywhere.