Here are some of the most common coverage gaps and ways to fix them so you and your family stay protected.
Home Insurance: What’s Missing?
Homeowners insurance is a must-have, but if you’re not careful, gaps in your coverage could put your home and finances at risk. Here are a few things to watch out for:
- Natural Disaster Exclusions – Standard policies often don’t cover floods, earthquakes, or windstorms. If you live in a high-risk area, separate coverage may be necessary.
- The 80% Rule – If your coverage doesn’t cover at least 80% of your home’s rebuild cost, your payout after a loss could be lower than expected.
- Personal Property Limits – Your policy covers personal belongings, but the limits might not be high enough for valuables like fine art, jewelry, or collectibles. Scheduled property coverage can help fill this gap.
Auto Insurance: More Than Just the Basics
Auto insurance is often legally required, but the bare minimum coverage may not be enough. Here’s where many drivers come up short:
- State Minimums Aren’t Always Enough – Liability coverage protects others, but what about your vehicle? Without collision coverage, repairs or replacements could come out of your pocket.
- No Gap Coverage – If you finance or lease a car, gap insurance is crucial. If your vehicle is totaled and you owe more than its market value, this coverage can prevent financial strain.
Life Insurance: Are Your Loved Ones Protected?
Life insurance provides security for your family, but having too little coverage can create challenges. Here’s what to consider:
- Employer Life Insurance May Not Be Enough – Group life insurance is a great benefit, but it’s usually tied to your job. If you leave, you could lose coverage.
- Coverage Limits Should Evolve with You – If you’ve had a child, bought a home, or taken on new financial responsibilities, it’s time to revisit your policy to ensure it still meets your family’s needs.
Personal Umbrella Insurance: Extra Protection for the Unexpected
An umbrella policy adds a layer of protection when other policies hit their limits. Here’s when it can make a difference:
- Major Auto Accidents – If you’re responsible for a serious accident, medical costs and damages could exceed your auto policy’s limits. Umbrella insurance helps cover the excess.
- High Liability Risks at Home – If you have a swimming pool, frequently host guests, or own rental properties, umbrella coverage can help protect you from large liability claims.
How to Close Insurance Gaps
Understanding your coverage is the first step. Here’s what you can do to avoid surprises:
- Take Inventory of Your Assets – Keep track of high-value items and make sure they’re fully covered.
- Consider Your Liability Risks – If you have dependents, own property, or drive regularly, ensure your policies match your level of risk.
- Reevaluate After Life Changes – Marriage, a new home, a growing family, or career shifts can all signal that it’s time for a policy review.
- Know Your Policy Add-Ons – Additional coverage options, such as flood insurance or scheduled property endorsements, can help fill in gaps.
- Work with an Insurance Advisor – An experienced insurance advisor can help tailor your coverage to fit your needs and ensure no detail is overlooked.
Find Peace of Mind with the Right Insurance Coverage
The worst time to find out you’re underinsured is after an accident or disaster. Don’t leave your financial future to chance. By identifying and addressing gaps in your coverage now, you can avoid costly surprises down the road.
Need a coverage review? Contact us today to make sure you’re fully protected.
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