Myths and legends surround every part of the world in one form or another. In the finance world, there exist a few myths that have surfaced the minds of people and infiltrating with the corners of illusionary reality. Since the insurance world is huge and intricate, people are bound to get carried away from the proper discrimination between the myths and the actual truth.

Due to the faith in these myths, people get trapped in insurance problems which eventually leads to loss or maybe even spam. Hence, to avoid such drastic situations. One must be aware of the cons of the rumors instead of immediately believing them under the influence of naïve nature.

Red Cars Bring More Payment For Insurance:

It is believed that red cars are prone to encountering more accidents. This may be due to the fact that the color red codes for alarm and that it indicates towards a warning sign in traffics, incidents. It is basically a cause for mayhem or, so it is known. But, it is a myth nonetheless as the color of the cars have nothing to do with the insurance of the passengers or property. The only thing that matters are the components that relate to the safety of the passengers directly.

Your Old Stuff Can Be Replaced With New Things:

It is possible that your old stuff can get replaced with the cost of the new alternative or be completely replaced with a new product. But, this premium quality is only offered under certain conditions as there is a slight difference between the Replacement Cost Value and Actual Cash Value. The replacement cost value, as indicated by the name, will get you the insured money equal to the purchase of the replacement but the actual cash value will amount only to the cash that represents the worth of the old thing, the day it was destroyed.

Home Insurance Covers For Floods And Earthquakes:

The home insurance is one of the common insurance products that are feasible and popular because of its various benefits and it does hold different advantages, but they are bounded around certain rules and limitations. A part of this restriction refers to the holding of insurance when your house gets damaged from natural disasters such as the floods and the earthquakes. If your house is surrounded with areas prone to these disasters, you can contact the respective department for the related policy but the home insurance is not the place where you will find its endorsement.

Landlord’s Policy Covers Every Damaged Stuff:

The idea of the landlord’s policy covering everything basically is wrong because then why are there other similar policies when it comes to houses? Isn’t that a bit suspicious? Well, it is not true as there exists a renter’s policy that covers the damage surrounding your personal belongings. The landlord’s policy will be there to assess the structure and cover its damage, but it will not account to the replacement of your damaged personal belongings.