Ten statements you hear all the time – and every one of them costs money for anyone who believes it. The factual answers, each in a short paragraph, with deeper explanations in the linked articles.
- The myths share one root: treating insurance as "bound = done and dusted."
- The remedy is always the same: real values, known terms, an annual look-over.
Myths about cover
1. "The building is insured, so everything's fine." Building cover doesn't protect the contents and stock – and for a leased property, it protects the landlord, not the tenant: who insures what. 2. "Property insurance covers anything that happens on the premises." Damage caused to someone else falls under liability insurance: the boundary. 3. "Business interruption insurance replaces lost profit." It doesn't – it typically covers fixed costs and a limited, time-capped wage burden, following insured property damage: myth-buster. 4. "Machinery breakdown is included in the base cover." It's typically a separate module: when it pays off.
Myths about values and premiums
5. "Market price is the right sum insured." Reinstatement cost is the benchmark – market price leads you astray: why. 6. "We'll insure for a lower sum, for a lower premium – they'll pay out anyway at claim time." Underinsurance triggers a proportional settlement: the rule. 7. "The old policy is fine because it's cheap." It may just be outdated – a sum that hasn't been updated in five years is itself the risk: myths article. 8. "The lowest-priced quote is the best buy." A premium difference reflects a difference in content: the cost of going cheap.
Myths about claims
9. "Insurers never pay out anyway." They pay according to the terms – disappointments are almost always avoidable: the five reasons. 10. "At claim time, the broker will sort it so we get more." That's not how it works: claims are notified via the insurer's claims line, and routine cases move fastest there – the broker helps you in a stuck or disputed case, with documentation: the real role. And the best claims strategy is built before the loss happens: loss prevention and a well-maintained policy: annual routine.
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