Here is some good information to help consumers identify “fact from fiction” when it comes to protecting themselves using insurance:

1. If my car is broken into, my automobile insurance will cover the loss of any personal property that is stolen. Or will it? The answer is most likely NO; typically a renters or homeowners insurance policy would cover a loss of personal property due to theft from your vehicle, subject to a deductible.  If this is an issue for you, check your policy(s) to confirm !
2. My homeowners insurance will cover any and all kinds of damage to my home. Sorry; this insurance is designed to cover you for catastrophic issues that are beyond your control such as fire, weather-related, theft or vandalism issues. Normal wear and tear and routine maintenance items won’t be covered, unfortunately.
3. Life insurance is only needed if you are an older individual with a family and assets. You buy life insurance to protect your assets in the future; not to protect them when you are young, healthy, and “poor”. Lock in while you are young at a much lower rate, and your future will be covered.
4. Flood insurance is only for homeowners who live in flood zones.  Just ask some of the folks who live in “100-year” flood zones such as the midwest who got hit both in 1993 and 2008; it doesn’t mean you are only at risk every 100 years. Check your policy and even if you live in a low to moderate flood risk area, it is inexpensive to add flood insurance.
5. When you rent a car, you are always covered by your auto insurance policy. Definitely don’t assume this; it may or may not apply. Always review your policy to see what they cover, if anything. Your credit card also may provide some coverage if you use it to pay for the rental.

All five of these items are common misconceptions that can cause big problems if you are not aware of the “truth”. Does anyone else have some to add?

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