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Commonly Misunderstood Homeowner’s Insurance Concepts

Mosaic Insurance is here to answer questions about your homeowners insurance in Prescott. If you have questions about common misconceptions, Mosaic Insurance can answer them.It’s easy to believe many of the myths about Prescott homeowner’s insurance and there are a few reasons. Misconceptions can begin with information on the internet that may have come from an unreliable source. Some information may come from the advice of friends or family members who may have had good intentions. Some home owners may feel intimidated by asking the insurance agency a question because they believe it is stupid. Mosaic Insurance wants you to feel that there is no such thing as a stupid question. We’ll cover some of the basic myths here.

“The insurance company sets my premiums aside until I make a claim.” Insurance is based on a risk pool. Insurance carriers pool the money of all customers to pay for claims. Insurance rates go up in an area that is a high risk for storms. Most policyholders will never pay enough premiums to offset a total loss.

“My insurance company will never know if I lie about something on my application.” A few things that applicants will hide are the fact that they are married, there is a dog in the household, or one or more claims have been made in the last five years. Insurers are able to uncover things that are misrepresented or omitted. Being caught in a lie could result in an increase in your premium. Hiding a large claim from just a few years ago only hurts more and could cause a policy cancellation.

“It’s okay to ignore a cancellation or non-renewal notice. They’re just sent as a scare tactic.” These are serious matters, and should be taken seriously.  Don’t make the assumption that it’s only a reminder. Contact your agent right away to see if anything can be done to save your policy.

“I have been with my insurance company for two decades. They will never cancel.” There may be perks to be with a company for a long time, but you may not be exempt from the harshest guidelines. A total loss from fire or storm may result in non-renewal once your claim is settled.

“I did nothing wrong, so I don’t owe the deductible.” Whenever you file a claim, your deductible applies, even if it’s an accidental fire, or tornado that was out of your control. You are contractually obligated to pay the deductible. It almost always applies.

This is a good time to review your homeowner’s insurance policy and coverage. Our friendly staff at Mosaic Insurance in Prescott wants you to feel comfortable with any questions you may have about your policy. We’re here to sort out the truth from the urban legends. Get more facts by calling 928-458-7374




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