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Homeowner insurance coverage gaps — what they are and what to do about 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.

“While a homeowner policy generally provides coverage for bodily injury and property damage, it does not cover personal injury (libel, slander, defamation of character, etc.). Help protect yourself from these kinds of risks by adding an Umbrella policy to your insurance portfolio."

 

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 Homeowner 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. Your AFI experienced agent can help you determine your flood risk. Remember, there is a 30-day waiting period for flood insurance policies to go into effect so if you believe you need coverage, don’t delay.

Additional structures – A homeowner policy commonly provides an automatic 10 percent 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 percent limit is not enough.

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, it does not cover personal injury (libel, slander, defamation of character, etc.). Help protect yourself from these kinds of risks by adding an Umbrella policy to your insurance portfolio.

Armed Forces Insurance: insurance for veterans from people you can trust

Armed Forces Insurance has been a trusted advisor to American armed forces service members and veterans for more than 135 years. We’re not a giant corporate skyscraper full of slick insurance executives. We’re a small company headquartered just down the road from Fort Leavenworth in Kansas. We know each other, and our customers know us. If you’re looking for a someone you can trust to shoot you straight and help you protect your home and property, check out our homeowner insurance page.

Learn more about home insurance:

A Consumer’s Guide to Home Insurance (National Association of Insurance Commissioners)

Homeowners Insurance Basics (Insurance Information Institute)

 

Armed Forces Insurance

Get the right homeowner insurance from a company you can trust.