Insurance policies are complicated. If you don’t do proper research, you may end up with a policy that doesn’t cover what you need covered, leading to a huge bill that you will have to find a way to pay.

Insurance is supposed to help prevent paying for damages out-of-pocket. Let’s review some common misconceptions about insurance and what you can do to protect your assets.

1. Insurance doesn’t cover every incident

Let’s look at home insurance, for example. Natural disasters like earthquakes or flooding may not be included in your coverage. If that’s the case, you will need to buy additional coverage to keep your assets insured against this type of damage.

A good insurance agent will not only explain what’s included in your insurance coverage, but they will also explain what’s not included. The details of an insurance policy can be complex, so it’s easy for the average person to misunderstand what is covered by their policy and what isn’t.

2. Vehicle insurance lapses are costly

Insurance providers don’t like it when people have gaps between coverage policies. Insurers view gaps as an indicator of riskiness and will charge the person higher rates. Even if you stopped paying for car insurance because you no longer own a car, it could lead to higher rates the next time you own a vehicle.

An insurance agent can warn you about these risks and guide you to a solution to prevent future higher rates. For example, purchasing non-owner car insurance or shopping for quotes before a policy ends can help ensure that you have continuous vehicle insurance.

3. Insurance doesn’t cover the past

If your policy didn’t include certain types of coverage when an incident happened, then adding it to your policy later won’t help you financially.

As mentioned earlier, not all home insurance policies include flooding damages. So if your basement floods with an inch of water and you don’t have flooding insurance, then you will pay for expenses out-of-pocket. There is no such thing as adding flooding coverage after the incident and getting reimbursed for expenses.

4. Liability insurance is important

Liability insurance covers a policyholder in the event they are held liable for injuries or property damage. Most people don’t consider this scenario when they purchase insurance. Instead, they want to focus on covering their belongings and assets. While this is important, it doesn’t mean people should overlook the value of getting liability insurance.

Lawsuits are incredibly costly and could leave a person with hundreds of thousands of dollars in legal debt. Liability insurance can help lower those costs and keep you financially protected. While you might think the odds of getting sued are slim, it pays to protect yourself.

5. Insurance agencies are helpful

You may think it’s easier to shop for insurance yourself. But while there are plenty of online resources to help you, finding the right policies can require a lot of research. You’ll also have to read the fine print of each insurance policy and ensure that they have the coverage you want.

Working with an insurance agency makes finding the right policy for you and your situation easier. They know what is usually included or not, along with what coverage you’ll need to cover your assets and protect yourself against liability costs.

Choosing an insurance agent you trust is key because you’ll need insurance for the rest of your life. Having a healthy, working relationship with your agent will help ensure that you have the right insurance.

Looking for insurance companies near Stuart, FL?

Gambale Insurance Group can help you find insurance for your home, auto, boat, and recreational vehicle. Our agents have access to a wide variety of options, so we’re able to tailor policies to match your needs. We’re dedicated to service and ensuring you get the best coverage at the best rates in the area.

If you would like to talk about your insurance needs, give us a call at (888) 875-3476 or schedule an appointment online.