Insurance people say it a lot, but it’s important to not just get a policy, but to also make sure you have the right coverage. One of the biggest issues for people in obtaining the right coverage is that it can be difficult to navigate an insurance policy. You know the basics when it comes to home insurance, like coverage for the structure of your home if something like a fire happened, coverage for your belongings, and even liability coverage.
There may be areas of your home insurance policy where you think you have enough coverage or coverage in general, but there could be gaps.
Here are some areas to talk about with your insurance agent where you may have gaps:
Rebuilding: If your home is destroyed, do you really have enough to fully rebuild your home? The answer to this question may surprise you.
Non-Covered Disasters: Floods, earthquakes, Sewer back-ups all wouldn’t be covered. If you are worried about any of those issues (which can happen to any of us these days), there’s insurance options. For example, a flood insurance or earthquake insurance policy may be a lot less than you think.
Home Office: If you are doing business out of your home, talk to an insurance agent about the potential need for commercial lines insurance coverage. The line between home insurance and business insurance can get blurry when you are working out of your home, but it’s important to know the limits before it’s too late. You could end up losing your home and business if something happens.
High Price Items: Turns out if you are robbed some of the items you are most worried about replacing wouldn’t be covered. There are limits to your personal property coverage on your home insurance. If you have high-priced items, like jewelry you may want to look into specialty insurance or having those items scheduled.
In order to find out how to close gaps or where gaps lay on your insurance policy you can do two things: do some research on your own or talk with your agent. Agent’s job is to know the ins and outs of policies. Ask questions if you have concerns!
Source: Chicago Tribune, Money US News, and USA Today