How to Spot Gaps in Your Insurance Coverage
We purchase insurance to cover the unexpected. Car accidents, floods, damage to homes, vandalism to business property, and even our own lives can be covered by purchasing the right insurance and the right amount of coverage.
“The right amount of coverage” is key. Yes, you may have auto insurance, but are you covered if you hit a deer, for example? You are if you have comprehensive insurance. Whether you purchase auto, home, or business insurance, there are many subtypes of insurance available. Buying a general policy will not provide coverage for everything that goes wrong, so you need to know what the biggest risks are and what concerns you have.
When people purchase insurance, they often do not fully understand how their insurance will respond in the event of a claim. This is what leads to gaps in coverage as well as overlaps in coverage. As a result, people often miss coverage where coverage is possible and end up with increased costs for no reason.
The main factor influencing the decision-making process for insurance purchases is cost. This means that people often purchase the cheapest policies without understanding exactly what is covered.
Don’t lose out on the coverage you need. Here’s how to look for gaps in coverage.
Locate Your Insurance Declarations Page
Your insurance declarations page is a key document that outlines the details of your coverage. Review coverage limits for personal property and liability and identify coverage for specific items (such as motorcycles). Next, evaluate whether additional policies may be needed.
Understand Insurance Terms and Coverage Limits
Knowing the definitions of common insurance terms, such as deductibles, exclusions, and liability limits, can help you recognize potential coverage gaps. Assess limits for each insurance type and compare coverage to asset values and potential risks. You should then identify exclusions and evaluate whether you need extra protection.
Create an Inventory of Personal Property
Maintaining a detailed inventory of your valuable belongings, such as electronics, jewelry, and collectibles, can ensure you have accurate insurance protection. List and document valuable items and update inventory regularly. Discuss with your agent to ensure you have enough insurance to cover these items.
Align Coverage with Assets and Risks
Evaluate your assets and risk exposure and compare policy limits to asset values. Work with your agent to spot gaps in coverage and adjust or add policies as needed.
Reviewing Policy Exclusions and Special Limits
Understanding what your policy doesn’t cover is just as important as knowing what it does. Look for exclusions and special limits. Consider coverage for high-value assets or disabilities to ensure you are not left underinsured. Endorsements and additional policies can help fill in the gaps.
Contact Us Today
Are there gaps in your coverage? Make sure you find out now before something happens and you have little to no coverage.
Hartman Insurance Agency, Inc. will help you understand your insurance policies and make sure you get the coverage you need at a price you can afford. To schedule a consultation with our Saline, Michigan, team, contact us via (734) 999-4190 or online here.