Myth #4: Get The Best Rate…Even If You Have To Stretch The Truth

Insurance Myth’s Busted Series!

It may be tempting to fudge the truth a bit to get a better rate on your life insurance application, especially if you have some serious health issues.

Or you may be tempted to not reveal certain higher risk business activities on your commercial insurance application.

Besides the fact that it is considered insurance fraud and is a felony in most states, it can also cause your policy to be cancelled for misrepresentation. This makes it nearly impossible for you to be rewritten with the same company and most likely any other reputable company. You are left only with very expensive options in the surplus lines market.

Lastly, at the time of loss, you or your beneficiaries would find yourself with no coverage in place.

Myth #1: Lock Your Insurance Policies In a Safe Deposit Box

Myth #2: You Don’t Need Flood, Earthquake or other Disaster Insurance

Myth #3: Renter’s Insurance Is A Waste Of Money

Myth #3: Renter’s Insurance Is A Waste Of Money

Insurance Myth’s Busted Series!

Many renters mistakenly assume that there is some coverage for their belongings included in their landlord’s policy.

Not The Case!

If a disaster occurs (Fire, Wind, Hurricane, etc), your landlord’s policy is designed to cover the loss to the structure and any contents belonging to them, but there is no coverage for your property.

This loss could easily be 30,000 to 60,000 and more depending on the amount of art, jewelry, guns and other expensive items that people like to collect.

Nor is there any coverage for a temporary space to live should your residence become uninhabitable.

There is another section of a tenant policy that is even more important… liability coverage.

You have friends over for the evening and someone trips over a bicycle, has too much to drink and falls down the stairs or worse yet, two people get into an argument and a fight breaks out. You could easily be pulled into a lawsuit for which you are not covered and have to defend yourself out of pocket.

The best part about having a liability policy in place is that even if it is not your fault, your insurance company will provide their attorneys to defend you.

Myth #2: You Don’t Need Flood, Earthquake or other Disaster Insurance

Insurance Myth’s Busted Series!

We typically think of California for earthquakes and ocean shorelines for flooding problems.

Unfortunately, both of these and other disasters can happen anywhere. Thankfully, the further you live from high risk areas for these disasters, the more affordable these coverage’s become.

For many people, their home represents a large portion of their net worth. Losing that asset without the financial ability to replace it would be devastating.

Earthquakes and flooding can happen anywhere and if you do not have these coverage’s you risk making a financial mistake that you could possibly never recover.

Myth #1: Lock Your Insurance Policies In a Safe Deposit Box

Myth #2: You Don’t Need Flood, Earthquake or other Disaster Insurance

Myth #3: Renter’s Insurance Is A Waste Of Money

Myth #1: Lock Your Insurance Policies In a Safe Deposit Box

Insurance Myth’s Busted Series!

It’s important to keep your life insurance policies, annuities, Will and other important documents in a safe place, however, a safe deposit box is not that place.

If your name or you and your spouse are the only names on the safe deposit box, no one but the executor of your will can get access to it without Power of Attorney. If your important financial documents are locked away there, your beneficiaries will have to wait until the estate is opened by a government entity and an executor is appointed.

A better choice is to buy a fire-safe box that yourself and a trusted family member has access.

You’ll also want to create a scanned copy of all those documents and keep an electronic backup.

With the various cloud storage options available (dropbox, etc), you can store these documents online and along with yourself, provide access for a trusted family member.

Myth #1: Lock Your Insurance Policies In a Safe Deposit Box

Myth #2: You Don’t Need Flood, Earthquake or other Disaster Insurance

Myth #3: Renter’s Insurance Is A Waste Of Money