Common misconceptions about personal insurance policies

With help from a Claims Adjuster, several insurance misconceptions or misunderstandings by claimants are highlighted, below.

Deductibles - Many insured individuals are unaware they owe separate deductibles for different claims, such as a roof claim and siding damage from separate incidents. Percentage deductibles, such as a 2% wind or hail deductible, are often confused with fixed deductibles, leading to significant discrepancies in out-of-pocket costs.

Constant/Repeated Leakage - Insureds may not realize that prompt action is required to address constant/repeated leakage to ensure coverage. The Claims Adjuster noted, “some insureds are not aware that time and their own due diligence to mitigate damage are large factors in coverage decisions.”

Water Damage - Claims are frequently misunderstood, as insureds may believe broken pipes will be replaced, while coverage typically only applies to resulting damage.

Utility Service Line - Coverage often excludes pipes underneath the home, contrary to what some insureds assume.

via The Rough Notes, May 2024