Possible Gaps In Your Homeowners Insurance

By Meha Ahmad, InsuranceAgents.com Staff Writer

A homeowner has to be on top of things, especially their homeowners insurance policy. A big risk homeowners face is being underinsured or falling victim to gaps in their homeowners insurance coverage. Unfortunately, many times these gaps aren’t realized until the homeowner tries to file a claim and realizes their policy doesn’t provide proper coverage. Paying home repair expenses out-of-pocket isn't fun. To avoid being underinsured or just to save more on your home policy, compare home insurance quotes, it's fast, free and easy. Use our quick quote form to get the best rate in your local area.

The overall best way to solve the problem of being underinsured or falling victim to inadequate gap coverage is talking to an insurance agent and making sure your homeowners insurance doesn’t have any of the following gaps:  

1. Flood insurance. Some homeowners insurance policies include coverage in case of a fire or maybe even an earthquake. But basic homeowners insurance DO NOT include flood coverage. You will have to buy flood coverage separately and it’s relatively inexpensive. Beware: flood insurance does not cover sewage-backup damage.
2. Sewage back-up. Most homeowners insurance policies do not include coverage if your drains or sewers back up, causing damage and loss in your basement or other parts of the home. Damage and loss can cost anywhere from $5,000 to $20,000 easily. And some policies that have this coverage set a strict limit on how much the insurer is obligated to pay.



Make sure that your homeowners insurance policy not only includes this coverage, but also that the limit is sufficient and that the contents of the home are covered along with your building. You don’t want to have to replace all your belongings out-of-pocket because there is a gap in your homeowners insurance policy. 

3. Enough Content Coverage. Your home isn’t just the structure—it’s the stuff in it. Standard homeowners insurance policies will provide coverage for your belongings, but the limits are probably set much lower than you are comfortable with. If you aren’t sure what is an adequate amount of content coverage to have on your homeowners insurance, then don’t forget to make a household inventory list (whether it’s a written list, video, photos, whatever—it just needs to be documented and preferably stored off-site). Document any jewelry, collectibles, and antiques. Furniture and appliances—dining sets, sofas, television, kitchen appliances, washer/dryer etc.—should definitely be added, along with any electronics. Don’t forget other personal belongings including clothes, bedding, rugs, and other furnishings. This list will help you figure out how much content coverage to get on your homeowners insurance policy.
4. Personal Liability Coverage. This is an absolute must for any homeowners insurance policy. Any homeowner should have Personal Injury liability coverage added to their homeowners insurance policy (Don’t assume it’s included. It’s not). In your home, you are liable for a number of things: bodily harm, personal injury, libel/slander and defamation of character. This coverage has to be added to your homeowners insurance policy for an additional premium, but is also considered inexpensive while providing a lot of coverage.

Published: Saturday 11th July 2009