Surprises are a part of life.
Month in and month out, we confront new obstacles, and no matter the size, these obstacles can be surprising and sometimes undesirable.
In the insurance world, these “undesirable surprises” are called “gaps” and they’re never enjoyable. However, if you know these policy gaps it can lessen the impact of their severity if they ever occur.
Coverage Gap: A coverage gap is an area or type of risk that an insurance policy does not cover.
How to Avoid Coverage Gaps
No matter what, coverage gaps will always continue because there is no such thing as an insurance policy that doesn’t have gaps. To learn a little more about these gaps, here are two seasonal scenarios where coverage gaps may occur:
The Roaring River
You live next to a beautiful stream that gently flows close to your backyard. It’s never been a problem until now. One weekend, after an ominous forecast by your local weather station, torrential rains came down and that quiet stream turned into a roaring river. Your backyard is now gone and your basement is under four feet of water.
Flooding is not covered by your homeowner’s policy. In order to be covered, You’ll need to obtain a separate flood insurance policy through the National Flood Insurance Program or a private insurer. This is a gap people sometimes face. Give us a call if you have questions about your homeowner’s policy and we’ll gladly go over it.
The Summertime thief
During the summer months, you decide that it’s okay to leave your windows open while you head out to your job. As you get home, your screen is broken and you realize that some of your belongings are gone. A burglar has broken in.
Here’s where coverage gaps come into play. You have personal property coverage on your homeowners/renters policy, and your policy covers $1,000 toward jewelry in a single incident. Unfortunately, the burglar walked away with $5,000. You’re out $4,000. There’s the gap.
In order to lessen the gap, you can “schedule” these expensive jewels. Don’t know what “scheduling” is? To learn more about scheduling, give us a call and we’ll gladly make sure your belongings are covered.
Want to learn more? Give us a call.
It’s important to understand your policy and address any coverage gaps that seem particularly concerning. That’s why we’re here to help.