Insurance is notoriously complicated, and few people have the time or desire to pore over their policies. But some basic knowledge can go a long way – and that’s where an insurance agent can help, by clearing up some of the most common misconceptions they encounter.
Here are five things agents say are helpful for customers to know:
1. Insurance doesn’t cover everything. When it comes to insurance, “Most people don’t understand the details,” says Andrew McGill, agent at The Insurance Shoppe in Collierville and Nashville, Tennessee. For instance, they often don’t realize that most homeowners policies won’t cover flood or earthquake damage. If your home is at risk for these disasters, you need separate coverage.
Auto policies generally cover only personal use of your car, so if you’ve picked up a side gig delivering groceries or meals during the pandemic, you likely need additional coverage, says Keya Pratt, agent and CEO of Pratt Insurance LLC in Richmond, Virginia. Otherwise, accidents you have on the job may not be covered.
Insurance policies of all types also generally exclude wear and tear, says Katherine Navarro Wong, a State Farm agent in Santa Rosa, California. She often gets calls from policyholders asking if their insurance will pay for things like broken dishwashers or aging gutters.