How to Identify Common Coverage Gaps, And Fix Them!
The last thing you want to find out is that your homeowner policy doesn’t cover something that you expected it to. Finding gaps in your insurance coverage is something that you want to do well before a loss occurs. And the Armed Forces Insurance team is ready to help you review your policy and make sure you have the coverage to fit your unique needs.
An annual or semi-annual review of your policies will help you and your AFI representative look at any potential gaps in coverage. Let’s take a look at some of the more common insurance coverage gaps.
Common Insurance Coverage Gaps
High-Value Belongings – A homeowner policy has specific coverage and dollar limitations for items such as jewelry, watches, furs, stamps, coins, silverware, firearms, etc. You can overcome these dollar limits and coverage exclusions with a Valuable Items Policy (VIP).
Water Back-Up – A homeowner policy does not automatically cover damage as a result of a water back-up or sump pump overflow. This coverage can easily be added to your homeowner policy so you aren’t stuck with the bill when it’s too late.
Flooding – Flood insurance is available through a separate policy. Let AFI’s experienced agents help you determine your flood risk and a policy quote. Remember, there is a 30-day waiting period for flood insurance policies to go into effect so don’t delay. Call us today at 800-248-3490.
Additional Structures – A homeowner policy commonly provides an automatic 10% of your Dwelling Coverage for Other Structures on your premises. These structures include fences, sheds, detached garages and other outbuildings. In many cases the 10% limit is not enough. If you have additional structures on your property, contact us so that we can make sure you are properly covered.
Home Titled to a Trust or LLC – Transferring your home title to a Trust or LLC may be a sound financial decision but did you know that your insurance policy needs to be updated to reflect this change?
Liability Limits – Homeowner liability limits range from $100,000 to $500,000. But are these limits enough should you find yourself in a lawsuit due to an injury on your property? Additional limits are available through an added Umbrella policy.
Personal Injury – While a homeowner policy generally provides coverage for bodily injury and property damage of others it does not cover Personal Injury (libel, slander, defamation of character, etc.). Yet another advantage of adding an Umbrella policy into your insurance portfolio.
We realize that coverage needs change over time. Call us today at 855-307-8652 for a complimentary insurance review.