Debunking Common Myths About Home and Auto Insurance

When it comes to home and auto insurance, there are numerous misconceptions that can lead to confusion and costly mistakes. It’s important to separate fact from fiction to ensure you’re adequately covered. 

Myth 1: My home insurance covers everything in my home.
While home insurance covers your house and belongings in case of damage or theft, it doesn’t cover everything. For example, high-value items such as jewelry, artwork or expensive electronics may not be fully covered by standard policies. To protect these items, you may need additional coverage or endorsements. Always review your policy carefully to understand its limits.

Myth 2: Auto insurance covers all types of damage.
Many people assume that their auto insurance policy will cover any damage to their vehicle, but this isn’t true. A basic auto insurance policy typically only covers damage caused by accidents or liability. It doesn’t cover damage from natural disasters, vandalism or theft unless you have specific coverage like comprehensive insurance. Ensure your policy reflects the protection you need.

Myth 3: The cheaper the insurance, the better.
While it’s tempting to opt for the cheapest policy, cutting corners on coverage can leave you financially vulnerable. Insurance is about protecting your assets, so it’s important to find a balance between cost and coverage. A cheap policy could leave you stuck with hefty out-of-pocket expenses in the event of a claim.

Myth 4: If I have auto insurance, I’m automatically covered for rental cars.
Many people assume that their personal auto insurance extends to rental cars, but this isn’t always the case. While your policy may offer some coverage for rental vehicles, it’s essential to check the details with your broker. Some policies provide limited protection or require you to purchase additional coverage through the rental company. 

Myth 5: I don’t need home insurance if I own my house outright.
Even if you’ve paid off your mortgage, home insurance is still crucial. Without insurance, you could face significant financial hardship if your home is damaged by a fire, storm or other covered events. Additionally, home insurance provides liability protection in case someone is injured on your property. 

In conclusion, understanding the truth behind these common myths will help ensure that you make informed decisions about your home and auto insurance policies. Always take the time to review your coverage, reach out to us and our expert brokers to make sure you’re fully protected.

 

Scott Sleightholm, CAIB, R.I.B.(Ont.), Vice President, Kenny Insurance Brokers