& How to Protect Yourself the Right Way

Here’s the truth: most people don’t really understand their insurance until something goes wrong. And by then? It’s too late.

We’ve all done it—signed off on policies we barely read, nodded through conversations filled with jargon, and assumed we’re covered because we’ve been paying a premium each month. But the reality is, misunderstandings about insurance can leave you vulnerable when you least expect it.

Let’s break down the biggest misconceptions—and how you can actually protect yourself the right way.

Misconception #1: “I have full coverage, so I’m good.”

This is one of the most common (and dangerous) assumptions. “Full coverage” doesn’t mean you’re protected from everything. It typically includes collision and comprehensive coverage, but it often leaves out important add-ons like rental reimbursement, gap insurance, or uninsured motorist protection.

What to do: Ask your agent to explain what’s not included in your policy. You might be surprised by the gaps.

Misconception #2: “I don’t need high liability limits. I’m a careful driver.”

Even the safest drivers can be held responsible in a serious accident. And if your liability coverage is too low, you could be on the hook for medical bills, legal fees, or property damage that far exceeds your policy limits.

What to do: Consider raising your liability coverage. The increase in premium is usually minimal—and the peace of mind is worth it.

Misconception #3: “Cheaper is better.”

It’s tempting to shop for the lowest premium, but a bargain policy can cost you more in the long run. Lower-cost policies may come with higher deductibles, limited coverage, or poor customer service during claims.

What to do: Look at the full picture—not just the price tag. A knowledgeable agent can help you compare value, not just cost.

Misconception #4: “Homeowners insurance covers flood damage.”

It doesn’t. Flood damage is specifically excluded from most standard homeowners policies. And even if you don’t live in a high-risk flood zone, flash floods and heavy rain can still cause major damage.

What to do: Visit floodsmart.gov to assess your risk, and talk to your agent about whether flood insurance is a smart addition to your policy.

What You Can Do to Protect Yourself

Understand your policy. Don’t be afraid to ask questions—your insurance agent should be willing to explain things in plain language.
Reevaluate your needs annually. As your life changes, so should your coverage.
Work with someone who advocates for you. At EFC, we’re committed to making insurance more transparent and tailored to real life.

Bottom line: Insurance isn’t just a piece of paper—it’s your safety net when life throws something unexpected your way. Take the time to make sure yours is strong enough to hold up.

Want help reviewing your coverage or getting a quote that makes sense for your needs? Visit ellenfenton.com and let’s have a real conversation about protecting what matters most.

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