Many people have gaps in their insurance coverage and don't ever realize it. When we start working with new clients, we often see these kinds of gaps.
Common Home Insurance Gaps
Short on Replacement Value. Did you know that 60% of homes are under-insured and could not be replaced in the event of a disaster?
When this happens, the homeowner would need to pay the shortage to rebuild the home. Check your policy to ensure you have the right coverage limit to match the full replacement value. Ask your agent to complete a Replacement Cost Estimator to determine the correct value.
Storm Water Coverage. Severe rainfall can wreak havoc, causing sewer and drain backups that destroy property. Coverage for sewer and drain backups is typically not included with standard home insurance, nor is coverage of a city sewer line that runs from the street to the home, but both can be added to a policy.
Protection for Valuables. If you own expensive jewelry, fine arts and/or other valuables, such as guns or collections of any kind, it is important to review your policy closely. Most policies cover a $1,000 maximum for valuables, and if your possessions exceed that amount, you will need to purchase additional coverage to protect your treasures. Appraisals may be required to determine the actual value of certain items.
Common Auto Insurance Gaps
Financing Exposure. When the value of a vehicle is less than the amount owed on a loan or lease, a traditional auto policy will not protect you, but a Loan/Gap Coverage will. Without this coverage, you must personally cover the difference to pay off the loan or lease if your vehicle is stolen or destroyed in an accident.
No Umbrella. In the event of an accident, many auto liability limits do not provide enough protection to cover all damages, leaving you on the hook for additional costs. Make certain you are covered by an Umbrella policy to handle Excess Liability.
Common Life Insurance Gaps
No Protection. In the event of death, life insurance removes financial burdens from your dependents as they deal with the emotional loss. Life Insurance can pay off the mortgage, fund college tuition, and support the lifestyle you can no longer provide.
Limited Protection. While any amount of life insurance is better than none, if family members depend on your income, the insurance industry recommends 7 to 10 times your annual salary to help dependents maintain their current standard of living.
Have questions about home insurance, auto insurance or life insurance? Talk with one of our knowledgeable insurance agents at Consultative Insurance Group for help in eliminating the coverage gaps covered here.