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There are many myths out there — like Bigfoot foraging through the woods or the Loch Ness Monster swimming in the depths of Scottish waters. Maybe you believe in these creatures… but we’re not here to debate their existence. We’re here to clear up common insurance myths to help you feel more confident and informed. Let’s unpack some of these myths and explain the reality behind them.

Myth #1: Homeowners Insurance Covers Everything Inside Your Home

A common misconception is that homeowners insurance covers everything inside your home. This is false. Most standard homeowners insurance policies cover:

• The cost to rebuild your home after a disaster.
• Your contents inside the home in the event of a covered loss.
• Liability coverage to pay medical bills if somebody is injured on your property.
• Living expenses if you must leave your home after a disaster.

While it might seem like everything inside your home is covered, that’s not entirely accurate. It’s important to talk to your independent agent to understand the specifics of your policy.

A base homeowners policy with Auto-Owners automatically covers:

• Dwelling and Personal Property
  • Covers the cost to rebuild your home after a disaster.
• Personal Liability Protection
  • Helps protect you from financial loss or lawsuits if an accident or injury occurs.
• Additional Living Expenses
  • Helps cover temporary living costs, such as hotel stays and meals, if your home is uninhabitable due to a covered disaster.

Takeaway: Not everything in your home is covered — talk to your agent to make sure you have the right protection.

Myth #2: Employer-provided Life Insurance is Enough

Many people believe that life insurance offered through their employer provides sufficient coverage. However, that’s not always the case.

Employer-provided life insurance is a great benefit, but it may not meet your specific needs. Consider the following:

• Coverage is often minimal.
• If you change jobs, you will likely lose your coverage.
• Your policy options may be limited.

Most group-based life insurance policies offer less coverage than individual policies. To ensure you and your family have the coverage that is right for you, consider purchasing an individual life insurance policy. That way, your coverage won’t disappear if your job changes.

Takeaway: Consider exploring life insurance options beyond your employer-provided policy.

Myth #3: Renters Are Covered by Their Landlord’s Insurance

If you’re new to renting, listen up! Many renters assume they’re covered under their landlord’s insurance policy. This is false. You need your own renters insurance policy.

It can be difficult to distinguish what your landlord’s insurance covers versus what you’re responsible for. Here’s the breakdown:

• Your landlord’s insurance typically covers damage to the building and liability for injuries due to their negligence.
• Your renters insurance covers your personal belongings such as furniture, clothing, electronics and valuables, inside your rental unit.

A survey conducted by the Independent Insurance Agents & Brokers of America found that 64% of renters don’t have renters insurance. Don’t make this mistake! The last thing you need after an unexpected loss is the added stress of replacing everything on your own. Renters insurance can help ease that burden.

Takeaway: Renters insurance can help with the cost of replacing lost personal belongings.

Myth #4: Homeowners Insurance Covers All Natural Disasters

Standard homeowners insurance typically covers damage from fire, wind, hail and lightning. However, some disasters — such as floods and earthquakes — are not covered. If you live in a high-risk area, you may need separate policies or additional coverage to ensure you’re adequately covered.

Takeaway: Work with your agent to confirm what natural disasters your policy covers and add any necessary coverage.

We get it, insurance myths are everywhere. When it comes to your coverage, knowing the facts can help save you time and money. Now the only internet rabbit hole you need to be concerned about is debating the existence of Bigfoot or Nessie (the Loch Ness Monster’s adorable nickname).

For more clarity on these insurance myths and other coverage questions, reach out to your independent agent.

Disclaimer: This article is not expert advice. The analysis of coverage is in general terms and is superseded in all respects by the Insuring Agreements, Endorsements, Exclusions, Terms and Conditions of the Policy. Some of the coverage mentioned in this material may not be applicable in all states or may have to be modified to conform to applicable state law. Some coverages may have been eliminated or modified since the publishing of this material. Discounts may not be available in all states. Limitations and conditions may apply. Premiums will be based on benefits chosen. Please check with your local Independent Auto-Owners Insurance Agent for details.

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