Insurance Myths

Sebastian Guenther • May 31, 2019
There are a variety of myths and misinterpretations about insurance. To help you separate fact from fiction, our Oviedo Insurance Office compiled a list of insurance myths that we've heard frequently and provided brief explanations to help set the record straight. Call a trusted associate today if you have any concerns regarding these myths. 

Click on a myth to reveal more information about it
  • Myth #1: Flood insurance is only important if you live in a high-risk area

    Not true. 20 to 25% of flood claims come from outside high-risk areas. Homeowners are four times more likely to sustain a loss from a flood than a fire. Remember, homeowner's policies don't cover flood situations, separate flood insurance is necessary.

  • Myth #2: Umbrella Insurance isn't important for everyone

    You don't have to be wealthy to be sued. Lawsuits are common, making umbrella insurance even more important. It gives you added liability protection above and beyond the limits on personal home, auto, and watercraft insurance policies. For a relatively minimal rate, you can add an additional $1 to $5 million in protection.

  • Myth #3: Renter Insurance isn't necessary if your stuff isn't worth a lot

    Renter insurance does more than protect personal property. It covers personal liability if someone gets hurt at your home. Lawsuits are common, so make sure you are protected. Remember, the replacement value of personal property can add up quickly, especially if you lose everything in a disaster.

  • Myth #4: My car is old, so I don't need to have high insurance limits

    The age of a car has no impact on your potential liability if you're in an accident, so you need to have good liability limits. While it might seem to make sense to remove "comprehensive" and "collision" coverage, you should only do this if you can afford the risk and cost of having to replace the vehicle on your own.

  • Myth #5: If someone driving my car causes an accident, I won't be held responsible

    While the "points" for being at fault in an accident affect the driver's rating, the insurance policy covering a vehicle is considered primary. If someone else is driving your car, your insurance company would have to pay damages in an accident.

  • Myth #6: Only the "Breadwinner" in the home needs Life Insurance

    Think about the value contributed by a "non-working" spouse: childcare, housekeeping, food preparation, home accountant, school transportation and more, can quickly add up. Consider purchasing life insurance to cover the financial hardship suffered by the absence of a person's income or contribution.

  • Myth #7: If I become disabled Social Security will take care of me

    Don't count on Social Security to take care of all your needs if you should become disabled. You also need other plans to reduce impacts to your lifestyle. We insure our cars, homes, etc., but often don't think about disability insurance as protection if we are unable to work and earn an income.

  • Myth #8: I drive a company car, so I don't need my own Auto Insurance

    The car may be covered, but your liability probably isn't. Even if your employer has coverage that provides some liability protection, it may not be enough, or you could be sued personally in a bad accident. Also if you borrow or rent a car, you should have your own protection. Being listed on another auto policy isn't enough to protect you because business use is different. You may need to purchase special protection.

  • Myth #9: All Car Insurance Is the Same

    When comparing policies, it's easy to look at price and not consider the level of protection. Any provider can reduce your coverage limits to reduce your premium, but you can end up at greater risk. Smart ways to save are:


    Increasing your deductible.

    Ask for all possible discounts you qualify for.

    Talk to your agent periodically - changes in life can change your needs.

  • Myth #10: I have Health Insurance, so I don't need medical coverage on my Car Insurance

    Some health insurance plans limit coverage or have high deductibles, so having medical coverage gives you added protection. It will also cover passengers in your car, regardless of who causes an accident.

  • Myth #11: My Health Insurance will pay for my long-term care needs

    Health insurance doesn't cover custodial care. Your options are:


    Use personal savings

    Rely on family to help

    Get Long-Term Care Insurance

    In FL, Medicaid provides assistance to approximately 70% of all nursing home residents, but it requires using most of your savings first.

  • Myth #12: I only drive my car occasionally, so I don't need higher limits

    The possibility of an accident is the same whether you drive a car every day or once a year. Your liability for injury you cause or property you damage isn't diminished because you don't drive often. Make sure you always have good protection limits! If you're looking to reduce expenses, consider increasing your deductible.

  • Myth #13: I'm self-employed and don't have employees. Workers' Comp Coverage isn't available

    Workers' Compensation insurance laws have changed. In the past, you couldn't obtain coverage if you didn't have employees, but that's no longer the case. You can protect yourself from on-the-job injuries with Workers' Comp.

  • Myth #14: I'm self-employed and don't have employees. I don't need Workers' Comp Coverage

    You're your own "employee", and you can get hurt, too. How will you support yourself if you get hurt on the job and can't work? Workers' Compensation coverage is important even if you're a one-person operation. Make sure you take care of yourself and those who depend on you.

  • Myth #15: Commercial Auto Policies cover equipment and tools left in a vehicle

    Only equipment permanently attached to the vehicle is covered in a commercial auto policy. Loose tools and equipment are not covered because they aren't permanently attached. To protect tools, supplies and equipment while in transit, you will need to add specific coverage.

  • Myth #16: If I'm not at fault in an accident, the other person will pay

    This assumes that the person at fault has insurance coverage. However, some people have no insurance or only minimal insurance that won't cover damage they cause to others. Even if you sue them, you may not be able to recover damages. The best way to protect yourself is having good limits on your own policy for the specific parts that cover being hit by an "uninsured" or "underinsured" driver.

  • Myth #17: I use my car for my delivery job. I'm not self-employed, so I'm still covered

    If your vehicle is used for anything but personal use, then you probably need to extend your personal auto policy to cover business use of your vehicle. Be sure you understand what is and what isn't covered by your policy. The best way to find out is to review your policy and call us with questions.

  • Myth #18: All insurance providers are the same. It doesn't matter who you buy from

    This misconception could cost you money, service and protection. Buying insurance is a much different process than going to the grocery store to purchase items like milk or eggs. There are three different sources for insurance, and your choice of provider makes a big difference. You want help when it counts the most! 


    1. Independent Insurance Agents - Represent a number of insurance companies and research with these firms to find you the best combination of price, coverage and service. Some agents represent more insurance companies than others. Be sure to ask.


    2. Captive Agents - Only represent one insurance company (why they are referred to as "captive"). They can only sell you insurance policies offered by the one firm they represent.


    3. Direct Writers - Only represent their own company and insurance policies. Generally, insurance is only offered over the telephone or online, eliminating the possibility of meeting face-to-face.


    Beyond options, it's also wise to consider the ongoing support you'll receive as your needs change and for possible future claims.



    If you've heard any other potential insurance myths, please contact us at info@salmonagency.com to allow us the opportunity to share them here.

Earth Day: The History of the Holiday and How to Celebrate in 2024

April 19, 2024
Each year on April 22 nd , people worldwide celebrate Earth Day , a holiday dedicated to honoring planet Earth and advocating for environmental protection. But how did Earth Day come to be, and what can we do to celebrate and make a positive impact? Let’s explore the holiday's history and explore ways to commemorate it! The History of Earth Day The birth of Earth Day can be traced back to the 1960s when environmental issues were increasingly gaining attention. Concerns about pollution, deforestation, and the impact of human activities on the planet grew, prompting individuals to act. This paved the way for the idea of Earth Day. Inspired by the anti-war movement, Senator Gaylord Nelson envisioned a nationwide grassroots demonstration to raise awareness about environmental issues. On April 22, 1970, the first Earth Day was celebrated in the United States, drawing millions of people from diverse backgrounds to participate in rallies, teach-ins, and various environmental activities. The success of the inaugural Earth Day was huge. It led to the creation of the Environmental Protection Agency (EPA) and the passage of key environmental legislation, including the Clean Air Act , the Clean Water Act , and the Endangered Species Act . Earth Day had evolved into a global movement, inspiring people worldwide to take action to protect the environment. How to Celebrate Earth Day Educate Yourself and Others Take some time to deepen your understanding of environmental issues facing our planet, from climate change and deforestation to plastic pollution and habitat destruction . Explore reputable sources of information, attend educational events, and engage in meaningful conversations with experts and activists online. Share your knowledge with friends, family, and community members to raise awareness and inspire action. Reduce, Reuse, Recycle Welcome sustainability principles into your daily routine by reducing waste, reusing whatever is possible, and recycling materials such as paper, plastic, glass, and metal. Consider adopting eco-friendly practices such as composting organic waste, using reusable shopping bags and water bottles, and opting for minimally packaged products. Encourage others to adopt these practices and support businesses that prioritize sustainability. Connect with Nature Spend time outdoors and connect with the natural world. Whether exploring a local park, hiking through a forest, or sitting in a garden, immersing yourself in nature can help you foster a deeper appreciation for Earth. Take time to observe wildlife, listen to the sounds, and marvel at the ecosystem’s beauty. Try activities such as bird watching, nature photography, or tree planting! Support Environmental Causes Get involved in environmental initiatives and support organizations addressing pressing environmental challenges. Volunteer your time, skills, and resources to participate in conservation projects, clean-up efforts, and advocacy campaigns. Donate to environmental organizations that are making a difference, and use your voice to advocate for policies and practices that promote sustainability and protect the planet. Your actions, whether by signing petitions, contacting elected officials, or joining movements, can help drive positive change at the local, national, and global levels. Related Article: 2024 Hurricane Survival Guide for Central Florida Residents Celebrate Earth Day Every Day While Earth Day is officially celebrated on April 22 nd , it’s important to remember that caring for the planet is an ongoing commitment that requires sustained effort and dedication. Make Earth-Friendly choices year-round and integrate sustainability into all aspects of your life. Encourage others to join you in adopting environmentally conscious habits and advocate for policies and practices that prioritize the health and well-being of the planet. Working together can create a more sustainable world for present and future generations. Conclusion Earth Day is a powerful reminder of our collective responsibility to protect and preserve the planet for future generations. From its humble beginnings as a grassroots movement to its global impact today, Earth Day has inspired millions of people to act and advocate for environmental stewardship. As we celebrate Earth Day each year, let us reflect on our progress and the challenges that lie ahead. We must reaffirm our commitment to caring for the Earth and working together to build a more sustainable and resilient world. After all, there is no backup planet – it’s up to us to care for the one we have!

2024 Hurricane Survival Guide for Central Florida Residents

By Lincoln Salmon • April 15, 2024
Floridians: Hurricane season is approaching! If you’re a resident of Central Florida, you must take steps to protect your home, your family, and your assets from potential damage. In addition to preparing your home and stocking up on essentials, it’s crucial for you to review your insurance coverage to ensure you’re adequately protected. Let’s dive into the importance of having the right insurance coverage, learn practical tips for hurricane preparedness, and outline the necessary steps to take in the aftermath of a storm. The Importance of Good Insurance Coverage Protecting your Home: Homeowners insurance typically covers damage caused by wind, rain, and other dangers associated with hurricanes. However, it’s essential to review policy limits and exclusions to ensure adequate coverage for potential damages. With Central Florida being a hurricane-prone region, you should consider purchasing insurance that covers not only property damage but also additional living expenses in case you need to evacuate your home. Flood Insurance: Standard homeowners insurance policies often do not cover flood damage. Given that Central Florida is affected by flooding due to hurricanes, purchasing flood insurance through the National Flood Insurance Program (NFIP) or a private market insurer (salmon website) is crucial for comprehensive protection. Flood insurance policies typically have a 30-day waiting period before coverage takes effect, so it’s important to plan ahead and secure coverage well before hurricane season begins. Windstorm Insurance: Some insurance policies may require separate windstorm coverage, especially in areas prone to high winds and hurricanes. Review policy details to confirm coverage for wind-related damages, such as roof damage, broken windows, and structural issues. It’s also important to understand any deductibles associated with windstorm coverage and how they may impact the cost of repairs after a hurricane. Some Tips to Prepare for Hurricane Season Review your Insurance Policies: Before hurricane season begins, review your homeowners, flood, and windstorm insurance policies to understand coverage limits, deductibles, and exclusions. Consider consulting with an insurance agent to ensure you have adequate protection based on your property’s location and unique risks. Flood Insurance: Document your belongings and their value through photos, videos, or written inventory. This will facilitate the claims process in case of damage or loss during a hurricane. Keep important documents, such as insurance policies, in a waterproof and portable container as part of your emergency preparedness kit. Windstorm Insurance: Take proactive measures to secure your property and minimize potential damage from high winds and flying debris. Reinforce windows and doors with storm shutters, trim trees and shrubs, and secure loose outdoor items. Consider investing in impact-resistant roofing materials and garage door braces for added protection against hurricane winds. Develop an Emergency Plan: Create a family emergency plan that includes evacuation routes, designated meeting points, and contact information for emergency services and loved ones. Stock up on essential supplies, including non-perishable food, water, medications, flashlights, batteries, and first aid supplies. Some steps to take after the hurricane Assess Your Damage Safely: After the hurricane passes, wait until it’s safe to venture outside and inspect your property for damage. Exercise caution when assessing damage and avoid touching downed power lines or entering flooded areas. Take photos or videos of the damage to support your insurance claim and document the extent of damage. Contact your Insurance Provider, if necessary: Report any damage to your insurance company as soon as possible. Provide detailed information about the extent of the damage and follow their instructions for filing a claim. Be prepared to provide your policy number, contact information, and a description of the damage when reporting a claim. Keep records of all communication with your insurance provider, including claim numbers and adjuster information. Mitigate Further Damage: Take immediate steps to prevent further damage to your property, such as covering broken windows, tarping roofs, and drying out water-damaged areas. Keep receipts for materials and services used to mitigate damage, as these expenses may be covered by your insurance policy. Work with reputable contractors and restoration professionals to ensure the repairs are completed safely and effectively. Document Expenses: Keep detailed records of expenses related to hurricane recovery, including temporary accommodations, repairs, and replacements. This information will help support your insurance claim and ensure that you receive fair compensation for your losses. Be sure to submit all relevant documentation to your insurance company in a timely manner and keep copies for your records. Conclusion Make sure you prepare in advance for hurricanes in Central Florida so you can mitigate the financial impact of storm damage and protect your home and family. Remember to stay informed, stay safe, and be proactive in safeguarding your property against the unpredictable forces of nature. With proper planning and preparation, you can weather the storm and come out stronger!

Flood Insurance: Essential Home Protection Against Flood Damage

December 5, 2023
Introduction In regions like Florida, where the risk of flooding is a constant concern, understanding and securing flood insurance is crucial for homeowners. This specialized insurance provides financial protection against damages caused by flooding, a peril not typically covered under standard homeowners insurance policies. Understanding Flood Insurance Definition and Basics Flood insurance is a specific type of property insurance that covers losses to your home and personal property due to flooding. It's crucial to note that standard homeowners insurance does not cover flood damage . Coverage Details A standard flood insurance policy typically includes: Structural Damage : Covers the repair or rebuilding costs for your home's structure. Personal Property : Provides compensation for damaged personal items. Living Expenses : Assists with costs if your home is temporarily uninhabitable. Assessing Flood Risk Risk Factors Key factors influencing flood risk include proximity to water bodies, regional climate patterns, and local topography. Importance of Risk Assessment Proper risk assessment is essential for determining the need and level of flood insurance coverage. Homeowners should use flood maps and risk assessment tools to gauge their property's vulnerability. The Necessity of Flood Insurance Protection Against Flood Damage Flood insurance acts as a safety net, ensuring homeowners can recover from flood-related losses. Case Studies Examples of flood recovery highlight the critical role of flood insurance in post-disaster financial stability. Flood Insurance vs. Homeowners Insurance Comparative Analysis Homeowners insurance covers various property damages but typically excludes flood damage, underscoring the need for a separate flood insurance policy. Misconceptions Clarified Many homeowners mistakenly believe their standard policy covers flood damage, which can lead to significant financial hardship in the event of a flood. Choosing the Right Flood Policy Factors to Consider When selecting a flood insurance policy, homeowners should consider coverage limits, deductibles, and policy exclusions. Policy Types Options range from National Flood Insurance Program (NFIP) policies to those offered by private insurers, each with unique coverage aspects. Financial Implications Cost of Flood Insurance The cost varies based on location, flood risk, and the value of the insured property. Long-term Financial Benefits Investing in flood insurance can prevent devastating financial losses during a flood event. Steps to Acquire Flood Insurance Process Overview To obtain flood insurance, homeowners should: Assess their flood risk. Compare policy options. Choose the policy that best fits their needs. Resources and Assistance FEMA's Flood Map Service Center and insurance advisors can provide guidance in selecting the appropriate policy. Preparing for Flood Events Preventive Measures Homeowners can minimize flood damage through measures like elevating utilities and installing flood barriers. Community Resources Local programs often offer support for flood preparedness and recovery. Conclusion Flood insurance is an indispensable safeguard for homeowners, particularly in flood-prone areas. It ensures financial resilience in the face of potential flood disasters. Next Steps  Evaluate your flood insurance needs and take steps to protect your home and financial future.
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