Is your homeowners insurance ready for a disaster? There are many homeowners that are underinsured but aren’t aware of it. Remember, your home should be insured for the cost to rebuild your home, not the market value. Here are 4 common gaps in insurance that could cost you big time!
1. Remodeling Liability
When renovating your home, there is a risk of injury. Hopefully, you’ve hired a reputable contractor with workers’ compensation coverage. Instead, if you hire a construction team or enlist your friends and family, your liability coverage could be pushed to the limits. The added risk to the work crew will require you to increase your liability coverage. In the event someone is injured, your policy can help cover medical and defense costs.
Gifts, jewelry, electronics, firearms, and other high-valued items need coverage! The personal property coverage included in your homeowners insurance typically covers a standard amount, but high-value property may require a separate endorsement or increased policy limits. Professional appraisals may even be required to establish the cost of your valuables along with a home inventory list. If your home is burglarized or a disaster hits, your jewelry, tv, and laptop could quickly add up to be more than your current personal property limit!
3. Windstorm or Hurricane Deductibles
Windstorms are the cause of most homeowners insurance claims. Ranging from thunderstorms to hurricanes, natural disasters can come in all shapes and sizes. This damage isn’t always looped in with your basic coverage. Take a look at your policy to see if you have a separate windstorm or hurricane deductible. The deductible amount can vary depending on the policy and the amount your home is insured for. If a hail storm causes roof damage, your windstorm deductible may be much higher than your non-windstorm deductible for other losses is.
According to FEMA, 25% of all National Flood Insurance Program (NFIP) flood insurance claims are filed by homeowners that live outside of high-risk flood zones. Flood damage is not covered under your homeowners policy. Many insureds don’t learn this until the damage is already done and proceed to file a claim. A separate flood policy is necessary and can take 30 days to take effect. Even with a flood policy, the items in your basement may not be covered, so be wary when storing valuables down there.
Don’t fall victim to any of these insurance gaps. Take a few minutes to review potential gaps in your coverage with your Lighthouse agent today!