Can you guess which of these 8 statements are true?
There are myths about insurance—auto, home, health—and they persist in spite of the facts. As we’ve said in other blogs, it’s important to get the facts straight before you purchase insurance of any kind. Here are eight true and false statements to see how well you understand insurance.
- Vehicles stored in your home or garage are covered under your Homeowner’s policy.
False. Cars and other vehicles should be covered by Auto Insurance. Garden tractors and other related items are part of what is covered by Homeowner’s Insurance.
- Commercial Liability Insurance provides coverage for your employees who are injured on the job.
False. Only Workers Compensation covers on-the-job injuries.
- Homeowner’s Insurance is based on the real estate market value of your house.
False. Your coverage is based on what it would cost to rebuild your home. This cost can vary, so an insurance agent can help you calculate these costs.
- The Affordable Care Act prohibits health insurance companies from basing rates on pre-existing conditions.
True. Health insurance companies used to raise the rates for people with a pre-existing condition. Not anymore. For those who have medical conditions such as high blood pressure, asthma and other chronic, pre-existing medical issues, this is a big relief. In addition, insurance companies can’t charge different amounts for men and women, either.
- It’s not necessary to have Other Structures coverage in your Homeowner’s policy.
False. But this is a trick question. It depends on you, the homeowner. Your Homeowner’s policy, at least 10% of it at least, is devoted to Other Structures. These include any buildings or structures not attached to your house—sheds, barns (not used for business), detached garages, driveways and fencing. You can always add to your Other Structures coverage if you need more. But it is important to keep it as part of your policy in the event of some unfortunate occurrence.
- If you get a speeding ticket in another state, it WILL follow you home.
True. Not only will it follow you, but it will also affect your insurance rates.
- Homeowner’s policies cover flood, earthquake and other natural disasters.
True. . .and False. They don’t automatically cover these things. Make sure you have it, or add it to your policy. The majority of policies exclude types of water damage.
- If your boat is hitched to the back of your vehicle on the highway and you back into someone, your Auto Insurance will cover it.
True. However, it will be limited to the coverage that your Auto Insurance provides, so it may not pay for property damage, injury or loss of life.
Keep checking our blog for more tips and advice about all types of insurance.
For all your home, auto, boat and other insurance needs, please contact Zawada Insurance Agency, Inc. We’re a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.