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Common Insurance Misconceptions

Mosaic Insurance has all the answers regarding umbrella insurance and homeowners insurance in Prescott.We always hope for the best and prepare for the worst. The same is true when it comes to insurance. Heaven forbid if something bad should happen, but when it comes to insurance, we want to be sure that we’re covered for things in life that can surprise us. At Mosaic Insurance in Prescott we have heard just abut every misconception regarding insurance that there is. We’re going to cover just a few of them here.

“I have an umbrella policy, so I’m covered for everything.”

The intent of a personal umbrella policy is for an extra layer of liability protection on top of what your other personal policies provide, there can still be coverage gaps.

Business activity is typically excluded from personal insurance policies, including umbrella. If anything happens while using your home or vehicle for business purposes, you’re probably not covered.

Umbrella coverage kicks in after you’ve exhausted your coverage on a primary policy, such as auto. If you don’t have a primary policy in place, for example, a boat and you are at fault for a severe accident, your umbrella policy won’t be useful until a minimum amount has already been paid toward the liability costs. It doesn’t matter if the damages were paid out of your own wallet or by the insurance company.

Umbrella doesn’t cover personal injuries or losses. It’s there when you are sued by another party and found legally at-fault for injuring someone or damaging someone else’s property. An umbrella policy doesn’t cover losses of uninsured jewelry or to your home if coverage is not enough to fully cover a loss.

“I don’t need to buy rental car insurance – my auto policy will cover it.”

The coverage on your personal auto policy will likely follow you any time you drive any car (a car you have permission to use). That doesn’t mean you’re clear to decline the rental car coverage.

If you don’t have comprehensive coverage on your own policy, you wouldn’t have any coverage for the rental vehicle either. If you’re hit with a repair bill for the rental, you’ll have to pay it yourself.

When renting a car, you might be liable for things such as administrative fees, loss of use, and diminished value.

Usually when we rent a car, we don’t think about what our policy covers. Some credit cards offer the insurance, but only if you pay for the rental with that card.  If you don’t have time to research this ahead of time it’s a good idea to purchase the insurance when you rent a car.

“No need to review my policy at renewal. I bought the right coverage the first time around.”

If your policy hasn’t kept pace with your life, you could be looking at an uncovered claim.

Maybe you received expensive jewelry as a gift, but never added coverage for it. Maybe you built an addition on your home but never bought coverage for the extra square footage. Maybe you bought a car with cash and forgot to insure it since there was no lender requiring proof of insurance.

If you take the time for an annual insurance review, you may find your coverage is no longer current. Instead, it’s designed for the life you had a few years ago. Contact Mosaic Insurance in Prescott any time there is a major change in your life. Call us today at 928-458-7344 to schedule an appointment about coverage options and solutions. It’s easier than explaining later on why something is not covered.

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